The owners of dozens of prominent summer camps across the Northeast have come under intense scrutiny after disclosing that they failed to make required payments to Israeli bondholders and transferred $34 million to businesses under their control, raising serious concerns among investors and triggering a financial crisis surrounding their camp empire.
Brothers Michael and David Shabsels, who control approximately 30 sleepaway and day camps – including many frum-owned camps – throughout the United States, completed a $195 million bond offering in December. Their holdings include well-known camps such as Camp Blue Star in North Carolina, Mohawk Day Camp in White Plains, Kiwi Country Day Camp in New York, Camp North Star in Maine, Chen-A-Wanda Camp in Pennsylvania, and Willow Lake Day Camp in New Jersey. As mentioned, they are also partners in many frum-owned camps.
According to documents provided to investors as part of the bond offering, an independent appraisal placed the value of the camp portfolio at $466.6 million and projected a capitalization rate of roughly 10.5 percent for 2025.
Seeking to finance their rapidly expanding operation, the Shabsels brothers turned to Israel’s bond market through Simad Holdings, a British Virgin Islands-based company that serves as the umbrella for their business interests.
At the end of 2025, company materials showed that Simad controlled approximately 80 assets, including a combination of camps, office buildings, and retail properties. Michael and David Shabsels reside in Scarsdale and Westhampton, New York.
Trouble surfaced in late May when Simad informed the Tel Aviv Stock Exchange that it had failed to make a required bond payment. At the same time, the company revealed that $34 million had been transferred to entities controlled by the Shabsels brothers, according to exchange filings and reports in the Israeli financial publication Globes.
The company characterized the transfer as an inadvertent error.
Following the disclosure, Simad’s audit committee requested that the brothers return the funds. Although they initially agreed to do so, Michael Shabsels later informed the company that they were unable to repay the money.
Reports by Israeli business outlets Globes and Calcalist sparked alarm among investors, sending Simad’s bonds into junk-bond territory before trading was ultimately suspended by the Tel Aviv Stock Exchange.
In cases involving secured debt, bondholders who are not paid often have the legal ability to pursue the assets pledged as collateral.
Additional disclosures further complicated the situation. According to Globes, Simad informed investors that the brothers had incurred obligations that were “secured on the assets and cash flows of the company’s subsidiaries.”
The disclosure raised concerns that loans may have been obtained using assets that had already been pledged to bondholders, prompting questions about the legal rights investors may have to seize the camp properties securing the bonds.
The brothers began acquiring camps in 2006 and steadily built one of the largest camp networks in the country. Their business model typically involves creating separate entities for camp operations and real estate ownership, with some original camp owners remaining involved as partners.
Despite controlling a portfolio of camps that serve thousands of families each summer, the brothers have generally maintained a low public profile. Several of their camps cater specifically to Jewish communities and religious families.
When marketing the bond offering last October, Simad distributed a 22-page investor presentation featuring photographs of campers enjoying lakes, ropes courses, waterslides, and other recreational attractions.
The bonds carried a 7 percent interest rate, and Israeli credit-rating agency Midroog assigned them an investment-grade rating.
The $195 million offering was underwritten by InFin Capital, headed by CEO Yehonatan Cohen. The firm has spent years advising American real estate companies on raising capital through the Tel Aviv Stock Exchange.
According to offering documents, roughly $100 million of the proceeds was earmarked for purchasing assets from the controlling shareholders and repaying loans that carried personal guarantees from Michael and David Shabsels. The remaining funds were intended for additional property acquisitions.
The bonds were backed by 13 camps, including Camp Achim, Chen-A-Wanda, Club Getaway, Country Roads Day Camp, Eagles Landing, Echo, Green Lane, Malka, Lavi, Meadowbrook, SHMA Camps, Mohawk Day Camp, and Rolling Hills Day Camp. Midroog indicated that bondholders were supposed to receive a first-priority lien on those properties.
Israeli financial analysts noted at the time that summer camps represented an unconventional form of collateral compared with the office buildings, apartment complexes, and commercial properties more commonly used in bond transactions.
Even so, major Israeli investment firms, including More Investment House, Meitav, and Migdal Capital Markets, reportedly purchased the bonds.
The current controversy is not the first time the brothers have found themselves facing allegations related to their business practices.
In one ongoing legal dispute, the owners of Kiwi Country Day Camp in Carmel, New York, filed a lawsuit in 2021 accusing the Shabsels brothers of orchestrating a hostile takeover of the camp.
According to court filings, Karla and Ivan Bellotto alleged that after entering into a partnership with the brothers, efforts were made to dilute their ownership stake. They further claimed that the property was refinanced, proceeds were distributed only to the Shabselses, and financial records were withheld.
The litigation remains unresolved. A trial began last summer and proceeded for five days before the brothers dismissed their attorneys in the middle of the proceedings, according to court records. The case resumed in May.
The brothers also faced another lawsuit involving Camp Lavco in Lakewood, Pennsylvania, where a minority owner similarly alleged that the Shabselses attempted to reduce his ownership interest and refused to provide access to financial information.
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