Israel Securities Authority Assists US Probe into Simed Holdings Bond Fraud

Israel's Securities Authority is conducting a legal inquiry in Israel at the request of U.S. authorities concerning alleged reporting violations and other suspicions related to Simed Holdings Limited. The company raised approximately NIS 620 million from the public in late 2025 through a bond offering.

The Israeli investigation into Simed began in late May 2026, shortly after the company's disclosures, which followed a request from the Securities Authority for clarifications regarding its financial statements. Following the U.S. authorities' request for legal assistance in gathering evidence, the Israeli Authority recently escalated its examination to the criminal level.

According to the Authority's statement, suspicions include the unlawful withdrawal of tens of millions of dollars from the company during the relevant period. These withdrawals allegedly occurred without proper disclosure in the company's prospectus and reports, indicating that the raised funds might not be used for their intended purpose, potentially harming the company's ability to meet its obligations to bondholders.

Additional suspicions involve the pledging of company assets in violation of the law and without proper disclosure, allegedly not for the company's benefit.