The Israel Securities Authority (ISA) has moved to the overt stage of a complex criminal investigation and opened a formal probe into businessman Haim Leib Kaplan.
Kaplan is suspected of committing a series of serious financial offenses in connection with a large-scale fundraising operation for a gold-mining venture in Ethiopia.
According to investigators, over a period of approximately eight years Kaplan raised more than NIS 200 million from 219 investors, many of whom belong to Israel’s haredi community.
The ISA said the suspected offenses include offering and selling securities to the public without publishing a legally required prospectus, obtaining funds by fraud under aggravated circumstances, theft by an authorized person, and offenses under the Prohibition on Money Laundering Law. The alleged conduct is said to have taken place between 2018 and 2026.
Investigators say Kaplan raised capital from Israeli investors for the Ethiopian gold-mining company YMG Gold Mining, including through two privately held companies under his full control: Lekach Investments Ltd. and Dakaria Investments Ltd..
As owner and senior manager of those companies, Kaplan allegedly managed the fundraising efforts directly and maintained ongoing contact with investors, providing periodic updates on the progress of work at the mine in Ethiopia.
According to the preliminary findings, Kaplan focused extensively on recruiting investors from the haredi sector and presented attractive promises, including claims that the original investment would fully double within four years.
The ISA suspects that the venture may have operated in a manner resembling a Ponzi scheme, with a significant portion of funds received from new investors allegedly being used not for the mining operation itself but to repay debts and earlier investors.
Investigators further allege that investors were systematically misled through false representations regarding the status of the mining project in Ethiopia and that Kaplan made extensive unauthorized use of funds entrusted to him.
The ISA also revealed that on February 1, 2026, Kaplan was issued a formal demand to immediately cease raising money from investors after suspicions first arose that he was selling securities without a prospectus. According to the authority, despite the warning, he allegedly continued the fundraising activity.
The financial investigation is still in its early stages, and enforcement authorities are currently taking steps regarding the network of companies involved. The allegations against Kaplan have not yet been proven in court, and he is presumed innocent unless and until convicted.