Darrell Issa is best known these days as a Republican politician, but he’s also a millionaire several times over.
Darrell Issa and his wife pooled their assets and borrowed money to invest in an electronics manufacturer. He then loaned money to a client company, Steal Stopper. A foreclosure on the loan meant Issa assumed control of the business, and was able to turn the struggling company around. He sold the company in 1985 and started his own successful car theft deterrent company, which he sold in 2000.
Let’s further explore the life of Darrell Issa before he entered politics.
The Beginnings of Darrell Issa
Darrell Edward Issa, was born in Cleveland, Ohio, on November 1, 1953. He was the second of six children born to Martha and William Issa. His father was a Lebanese American and his mother is of German and Czech descent.
In 1970, on his 17th birthday, Issa dropped out of school in order to enlist in the army. He became an Explosive Ordnance Disposal (EOD) technician assigned to the 145th Ordnance Detachment.
He served for three years until his father suffered a heart attack and he received a hardship discharge.
In 1972, he was arrested twice. Once for grand theft auto, a charge that was dropped, and once for carrying a concealed weapon. He avoided jail time and was instead given probation and a small fine.
Issa attended Siena Heights University, in Michigan, and then Stark branch campus of Kent State University, where he enrolled in the Reserve Officer Training Corps and served as a second lieutenant. He was eventually promoted to captain before being discharged in 1980.
Shortly before his discharge, Issa was caught in more legal troubles, when he was involved in a car crash. The other driver sued him for $20,000 but the pair settled out of court for an undisclosed amount.
Making His Millions
After leaving the army, Issa moved back to Cleveland. He and Kathy Stanton, his wife, pooled their savings, sold their vehicles, and borrowed $50,000 from family members.
They invested in Quantum Enterprises, an electronics manufacturer in Cleveland that assembled bug zappers, CB radio parts, and other products for consumer companies.
A client of Quantum Enterprises, Steal Stopper, was struggling financially. Issa gave the company a $60,000 loan which he then foreclosed after the founder missed a payment. Issa turned the company around and it began selling thousands of car alarms to Ford.
However, in 1982, the Maple Heights offices and factory of Quantum and Steal Stopper caught fire. The buildings and almost all inventory were destroyed.
A subsequent investigation found “suspicious burn patterns,” with fires started in two places aided by an accelerant such as gasoline.
The founder of Steal Stopper, Joey Adkins asserted that Issa had prepared for a fire, increasing the fire insurance policy by 462% three weeks prior, as well as removing computer equipment.
The insurance company initially paid out only $25,000, according to Issa, suspecting deliberate arson.
As car theft rose in the 1980s, so did demand for car alarms. Steal Stopper regained its prosperity quickly. The company sold alarms to Rolls Royce, BMW, General Motors,Toyota and Ford.
In 1985, Issa sold Steal Stopper and moved to San Diego, California. He started his own security device company—Directed Electronics, Inc. (DEI). Issa’s knowledge on car alarms and thieves’ practices meant he was able to manufacture effective theft deterrents.
He developed sensors that could detect motion and pressure upon the car. Some of the devices would play a recording of Issa’s voice, saying “Protected by Viper. Stand back” or “Please step away from the car.”
By 1989, the company’s sales had reached $14 million.
In 2000, Issa sold his controlling interest in the company in order to pursue a career in politics.
Darrell Issa had a net worth estimated to be $436.5 million, in 2014.
Issa giving his support to a grinning cardboard cutout of Donald Trump