Omri Sharon, a Likud Party lawmaker and key adviser to his father, had previously said he would argue in his defence.
He was accused on Tuesday of fraud, breach of trust and perjury – charges carrying a maximum sentence of seven years in prison.
Although no charges were brought against the prime minister over the case, the scandal has embarrassed him at a time when he faces tough political battles.
Allegations that shell companies were set up to funnel foreign donations to Ariel Sharon’s successful 1999 race for the right-wing Likud party leadership fuelled political opposition to the prime minister.
Foreign funding of political campaigns is illegal in Israel.
The scandal has embarrassed
Sharon had denied any wrongdoing in the funding case, saying his two sons alone handled financing for his 1999 primary campaign.
Attorney-General Menachem Mazuz decided in February against indicting the prime minister, citing lack of evidence after a three-year investigation.
Related charges against two of Sharon’s former senior advisers were dropped.
Sharon is expected to face early elections next year as a surprise leadership change in the Labour party, a key partner, has brought his ruling coalition to the verge of collapse.
Elections are due in November 2006.