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.