Funny Money Part 1

ISI Life Sciences, Inc.

In 2012, Congressman Dana Rohrabacher made an investment in a privately-held company called ISI Life Sciences, Inc. Rohrabacher does not have a background in biotech and prior to this investment, Rohrabacher hadn't reported any investments in privately-held companies.

Rohrabacher's investment was small

Rohrabacher's investment was less than $1,000. For an investment of this size, Rohrabacher was not required to report the transaction on his financial disclosures.

Rohrabacher's investment got really big ...

According to Rohrabacher's financial disclosure for 2012, his investment in ISI was worth between $100,000 and $250,000 on December 31, 2012. In his subsequent annual financial disclosures, Rohrabacher has continued to list this investment as an asset worth between $100,000 and $250,000.

... Really quickly

According to ISI's one SEC filing, the company's first sale of equity was on December 17, 2012. This is the earliest date that Rohrabacher could have owned shares in the company. The company sold $354,125 in equity -- so there was at least one investor besides Rohrabcher since he  invested less than $1,000.

This is unusual

A 100x increase in the value of an investment in two weeks would be highly unusual. Especially occurring during the last two weeks of the year when there's relatively little value-creating activity taking place. We couldn't find a single article or press release showing that ISI did anything at all between December 17th and December 31st.

Actually, we couldn't find any articles or press releases in the years since Rohrabacher's investment either ... But maybe they're just really under the radar. 

If ISI is so "under the radar," how did Rohrabacher find out about ISI early enough to invest?

Good question! We've got a bunch of questions for Congressman Rohrabacher.