The Details Of Rohrabacher's Investment Don't Add up

Warren Buffett is a great investor. Dana Rohrabacher, on the other hand, is not.

Unlike Warren Buffett, Dana Rohrabacher is a bad investor.

 Dana Rohrabacher supposedly made a 100x return on his investment in ISI Life Sciences – without doing anything illegal or unethical -- but his previous investment history was a disaster – he lost 40-70% playing the stock market. How is he so good at picking the right biotech start-up when he was so bad at investing in household names like Cisco and Apple?

A giant among women and men?

There are 54 members in California’s House delegation – but Dana Rohrabacher is the ONLY one who has ever reported making a 100x return on a private investment in a two-week period. Is he really that much smarter than every other member of Congress from California?

It would have been illegal to advise Rohrabacher to make this investment in ISI

According to SEC rules, Dana Rohrabacher was not a “qualified investor” to make this speculative investment in this private company. He didn’t have sufficient income or net worth to qualify. To put it another way, if a registered financial adviser had tried to talk Rohrabacher into making his investment in ISI Life Sciences, it would have been illegal. 

And if Rohrabacher had lost money, he would have even been able to sue his adviser for allowing him to make the investment in the first place.

This of course raises the question of who advised Rohrabacher in his investment in ISI Life Sciences -- because it appears that whoever did was breaking the law.

Rohrabacher has friends on the board of this company

Rohrabacher may have been a stranger to investing and he's certainly no expert in biotech - but he wasn't a stranger to the individuals listed on this company's SEC filing.

  

Take Craig Keshishian, for example. He's listed as an Executive Officer and Director of ISI. According to his LinkedIn profile (we've taken a screenshot of it in case he deletes it), Keshishian worked in the Reagan White House  from 1981 to 1983 and spent part of that time in the Office of Speechwriting. 

Reagan Administration archives reveal that Dana Rohrabacher was also in the Reagan White House speechwriting office from 1981 through the entire period Keshishian was in the White House


And that isn't Rohrabacher's only connection to the company's board. Edwin Laird, a Board member of this company, is such a strong supporter of Rohrabacher that he’s publicly defended Rohrabacher’s record on Russia as recently as October 2018.

Unethical at best - but quite possibly illegal

If the Congressman got a tip from a friend that this investment would quickly grow – he broke the law. 

But even if he didn’t know his investment would grow this quickly, it was unethical for Rohrabacher to make this investment based on private information from his friends and likely in violation of House rules.

Craig Keshishian and Edwin Laird could also be guilty of felonies if they brought this investment to Dana Rohrabacher's attention - even though he was not qualified to make this investment. 

Additionally, neither Keshishian nor Laird are registered investment officials and may have broken California law in addition to their SEC violations.