Updated
Updated · The Real Deal · Aug 13
Simad Sells 26 Camps for $368 Million After $34 Million Fraud Triggered Bond Default
Updated
Updated · The Real Deal · Aug 13

Simad Sells 26 Camps for $368 Million After $34 Million Fraud Triggered Bond Default

1 articles · Updated · The Real Deal · Aug 13

Summary

  • $368 million in camp sales from 26 properties should let Simad repay Israeli bondholders in full or close, with proceeds coming in 7% above appraised values.
  • The recovery follows Simad's default just six months after raising $200 million in Israel, when directors disclosed that $34 million had been transferred to companies controlled by David and Michael Shabsels.
  • Investigators later found Simad, the Shabselses and affiliate Damis had piled on $234 million of costly merchant-cash-advance debt that key gatekeepers did not fully capture.
  • The June bankruptcy prompted an Israel Securities Authority probe, a U.S. Justice Department criminal investigation and tighter ISA reviews of foreign issuers, underwriters and U.S. property appraisals.
  • Even so, Israel's market for U.S. real-estate debt has kept reopening: foreign issuance hit a record $4 billion in 2025, and lawyers say new sponsors are still seeking bond funding.

Insights

If the defaulted company's assets fully repaid investors, is the Israeli bond market actually safer than critics claim?
How did a massive summer camp empire hide hundreds of millions in debt from top international financial regulators?
What hidden pandemic-era secrets will the DOJ uncover as they probe this spectacular cross-border financial collapse?