Jordan Belfort is the man who earned billions of dollars by selling worthless shares to unaware customers in the late 80s and early 90s. Belfort and his colleagues in the brokerage firm Stratton Oakmont used the well-known scam method “pump and dump” to lure customers to invest in worthless stocks that hey made money from.
The “pump and dump” scheme
Belfort and Stratton Oakmont would buy large quantities of cheap stocks from small companies or from fictitious companies they created themselves. They would then call around to investors, talk positively about the company which then caused the share prices to increased, in other words pumping up the shares. When his brokers began to “dump” the shares by selling their shares, the shares would then plunge and investors would lose their money leaving Belfort and his closest business partners with millions in profits.
At one point, Belfort made around $1 million a week and a net worth of over $98 million. He owned a massive mansion on Long Island outside of New York where he traveled to and from with his private helicopter. He also owned expensive luxury cars, a yacht once owned by fashion icon Coco Chanel and on top of that he had one hell of a nasty drug problem.ALSO READ: Greed and insider trading.
His greed almost killed both himself and his family several times. He crashed his car with her daughter who was then three years old in a brick wall and crashed his private helicopter when he was under the influence of drugs. He sank his beautiful yacht in the Mediterranean when Belfort demanded the captain to sail through a heavy storm.
In the biography he is open about his drug consumption, infidelity and madness that swept the young brokers office in the 90s. Some of the stories mentioned in the book have been denied by others who were with him at that time, such as Danny Porush, but several other stories have also been confirmed by him.
In 1998, his pump and dump adventure was over and Belfort was arrested by the FBI. He was sentenced to four years in prison for fraud, but served only 22 months after he put all the cards on the table and gave up his accomplices to the FBI.
He was also ordered to repay over $100 million to his victims. Currently, he’s been able to pay back around $11 million and he is still working on paying back every cent.
Today Belfort earns a living as a lecturer where he gives tips on what he knows best, business. He also sells motivation and sales tips on CD through his website www.jordanbelfort.com for those who are interested, like me
All the money he earns on the film (The Wolf of Wall Street) and his books go straight to the authorities and repayment to the victims.ALSO READ: Defrauded his clients for $50 billion.
Belfort later wrote a book about his escapades where he openly talked about his high consumption of cocaine, the sedative Methaqualone, prostitutes and general crazy behavior only billionaires manage to get away with.
The Wolf of Wall Street
His autobiography, «The Wolf of Wall Street» has been turned into a star-studded blockbuster movie with the same name.
The actors in the movie are none other than Leonardo DiCaprio, in the role of Belfort himself, Jonah Hill as his business partner Danny Azoff (in real life Danny Porush) and Matthew McConaughey as Belfort’s business mentor, Mark Hanna. The director of the movie is the legend Martin Scorsese. The movie has been nominated for five Oscars, including Best Picture, Best Director and Best Actor.
The Wolf of Wall Street made me cry, not because it was a sad movie, but because the movie was awesome! Leonardo DiCaprio played a believing role (as always) and led me into the world of Jordan Belfort both physically and mentally.
I recommend the movie to anyone that is into stocks, penny stocks and business in general. I’ve watch this trailer 30 times before I actually watched the movie.