Securities Authority Launches Criminal Investigation into Cimed
The Israel Securities Authority has launched a criminal investigation into Cimed Holdings Limited at the request of US authorities. The company is suspected of misappropriating tens of millions of dollars.
The Securities Authority is conducting, on behalf of American authorities, legal assistance proceedings regarding suspicions of reporting offenses and other violations concerning Cimed Holdings Limited, which raised approximately 620 million shekels from the public at the end of 2025 through a bond issuance.
The examination regarding the company in Israel began shortly after its publications at the end of May 2026, which were made following a request from the Authority's staff for clarifications regarding its financial statements. Following a request from US authorities for legal assistance in collecting evidence, the Authority recently transferred the examination to the criminal level.
According to the suspicion, as stated in the Authority's announcement, during the relevant period, funds in the amount of tens of millions of dollars were withdrawn from the company in violation of the law. This occurred without disclosure in the company's prospectus and reports that the raised funds might be used for purposes other than those intended by the issuance, in a manner that could harm the company's ability to meet its obligations to bondholders. Additional suspicions have also arisen, including that the company's assets were pledged not for the benefit of the company, in violation of the law and without disclosure.
