The Israel Securities Authority (ISA) has launched a public investigation into businessman Chaim Leib Kaplan on suspicion of multiple financial offenses tied to a gold mining investment venture in Ethiopia.

According to the ISA, Kaplan allegedly raised more than NIS 200 million over an eight-year period from 219 investors, many of them from the Chareidi community.

Investigators suspect Kaplan offered and sold securities without a legally required prospectus, in violation of Israel’s Securities Law. He is also suspected of obtaining funds by fraud under aggravated circumstances, theft by an authorized agent, and money laundering offenses. The alleged activities are said to have taken place between 2018 and 2026.

Authorities say Kaplan raised funds for the Ethiopian gold mining venture operated by YMG Gold Mining through companies under his control, including Lakach Investments Ltd. and Dakaria Investments Ltd. As owner and senior executive of the companies, he allegedly oversaw fundraising efforts and provided investors with updates on the project’s progress.

According to investigators, Kaplan primarily targeted Chareidi investors, promising that their investments would double within four years. The ISA suspects that some funds received from newer investors were used to repay earlier investors.

The investigation further alleges that investors were misled through false representations and that Kaplan exceeded the authority granted to him regarding the use of funds entrusted to him.

The ISA stated that on February 1, 2026, Kaplan was ordered to stop raising additional investors after regulators suspected he was offering securities to the public without a prospectus. Despite that directive, investigators allege he continued soliciting investments.

The investigation remains in its early stages. The allegations have not been proven in court, and Kaplan is presumed innocent unless and until proven guilty.

(YWN World Headquarters – NYC)