An investigation on behalf of current investors in Isramco, Inc (NASDAQ:ISRL) shares over possible of breaches of fiduciary duty by the board of directors of Isramco, Inc (NASDAQ:ISRL) was announced.

Isramco, Inc. (Nasdaq: ISRL) reported that it had received a NASDAQ Staff Deficiency Letter on September 24, 2008 indicating that the company fails to comply with the NASDAQ's independent director and audit committee requirements as set forthin Marketplace Rule 4350. This deficiency resulted from the resignation of a director of the company as a result of a potential conflict of interest between his business activities and those of the company. According to the investigation Isramco, Inc. (Nasdaq: ISRL) is controlled by CEO/Chairman Haim Tsuff, who, through various entities, owns approximately 50% of Isramco, Incs stock. The investigation by a law firm focuses on the fact that Isramco, Inc. (Nasdaq: ISRL) has had a long-standing 'consulting agreement' with Goodrich Global, a company owned and controlled by Tsuff, pursuant to which the company has paid Goodrich Global $240,000 a year in consulting fees. Until September 2008 the board of directors of Isramco, Inc. (Nasdaq: ISRL) had five directors. As stated above in September one of the outside directors resigned. Then in November when the board of directors of Isramco, Inc. (Nasdaq: ISRL) had only four directors Isramco, Inc. (Nasdaq: ISRL) entered into an Amended and Restated Agreement with Goodrich that increased the consulting fees dramatically, so the investigation. Under the amended agreement Goodrich Global receives $360,000 a year plus 5% of Isramco's annual pre-tax profit.