Israeli Regulator Investigates Chaim Leib Kaplan for Raising Over 200 Million Shekels from Ultra-Orthodox Investors

The Israel Securities Authority (ISA) has launched a public investigation into businessman Chaim Leib Kaplan on suspicions of multiple financial offenses related to fundraising for a gold mining project in Ethiopia. Kaplan is suspected of raising more than 200 million shekels over approximately eight years from 219 investors, many of whom are from the ultra-Orthodox community. The probe focuses on allegations of offering and selling securities without a prospectus, fraud, theft by an authorized person, and money laundering offenses, with suspected activities occurring between 2018 and 2026.

Kaplan reportedly raised funds for YMG Gold Mining’s Ethiopian gold mining venture through companies under his control, including Lakash Investments Ltd and Dakaria Investments Ltd, where he serves as owner and senior manager. He was involved in soliciting investments and updating investors on the mine’s progress. Authorities allege Kaplan primarily targeted ultra-Orthodox investors, promising to double their money within four years. The ISA suspects that some new investor funds were used to repay earlier investors, and that Kaplan misled investors with false representations and exceeded his authorized use of the invested funds.

On February 1, 2026, the ISA ordered Kaplan to cease raising funds after suspicions arose that he was offering securities without a prospectus. Despite this, he allegedly continued fundraising activities. The investigation is in its early stages, and Kaplan is presumed innocent until proven otherwise.