Kohan Properties CEO Ousted After Continued Fund Withdrawals
Mike Kohan, the controlling shareholder and CEO of Kohan Properties, a company with commercial real estate assets in the U.S., has been removed from his CEO position following continued unauthorized withdrawals of company funds. Kohan had previously apologized and promised to return millions of dollars he had taken from the company without proper reporting or approval.
Despite his assurances, further audits revealed that as of the end of June, Kohan owed the company $8.1 million. During July, he withdrew an additional $7.4 million, a figure higher than the $4.9 million previously reported to investors on the Tel Aviv Stock Exchange. This discrepancy was partly due to withdrawals from a Chicago property account, which had not been fully included in earlier assessments. By July 29, Kohan had taken another $1.1 million from this account.
During an investor meeting in mid-July, Kohan had repeatedly apologized, stating that such incidents would "never happen again" and claimed to have returned the money. However, new audit findings indicate he continued to withdraw funds during that same period. To date, Kohan has returned $12.6 million, but the company states he still owes $4 million, excluding interest. The company's audit committee and board are working to recover the remaining funds, with Kohan promising to return $2 million by the end of August.
In light of these ongoing issues, the company's board has agreed with Kohan that he will step down as CEO effective August 31, 2026. He will transition to the role of company president, intended to allow him to continue contributing to the company's real estate business. Concurrently, Ran Ben Daniel, the company's CFO, will be appointed interim CEO until a permanent replacement is found.
Kohan had previously attributed the earlier withdrawals to a "good faith mistake" stemming from an organizational structure not suited for a public company. Following those initial events, the board had ordered a review of past reports, revoked Kohan's sole signing authority, and appointed the compliance officer as a mandatory signatory on all company bank accounts. However, it now appears these measures did not prevent further withdrawals.
