Jordan Belfort Case Analysis

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Penalties Imposed Upon Guilty
In 1998 Jordan Belfort was indicted with 27 counts of International Securities Fraud and Money laundering. After cooperating with the FBI, in 2003 Belfort was sentenced to four years in prison and fined and ordered to back approximately $110 million that he had defrauded from investors. He served 22 months in federal prison and was ordered to pay investors 50% of his income until $110.4 million was collected (Kolhatkar, 2013). According to federal prosecutors, Belfort has not kept up his part to fulfill the terms of his agreement. After his release in April 2006 Belfort’s income has consisted of $1,767,203 from his publication of his books, the sale of his movie rights, and the $30,000 he gets per motivational speech. And since 2007 he has only paid $243,000 of the $110 million he is required to pay as restitution. His actions have resulted in federal prosecutors filing a complaint against him in October of last year. The government has not held Belfort in default, only for keep negotiations open. But, it is still uncertain of when the full restitution amount will be paid off (Con Artists Hall of Infamy).

Policy
Securities Fraud:
Securities fraud, also known as investor fraud or investment fraud, is a deceiving way of manipulation in the stock markets, which persuades potential investors to purchase or sale due to false information, usually resulting in loss of investments. Securities fraud may also involve direct theft from those investing through embezzlement, the theft or misuse of funds placed in one’s trust (Google), or stock manipulation, which is a premeditated attempt to meddle with the free and fair operation of the stock market and create false perception in respect to the price of such...

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... sell it a higher price (Google). It was alleged that his actions resulted in investor losses of approximately $200 Million (Kolhatkar, 2013).
Punishment Analysis
In the case of Jordan Belfort, the penalties and the sentence he was sentenced to serve does not seem justifiable for the result of his actions. But, unfortunately for such white collar crimes, it is very difficult to create a set standard for such punishment. I have come to the conclusion that lamentably a prison sentence will not make up for the financial downfall that Belfort’s action created in the lives of those mislead investors. And although he is required to pay back restitution to his alleged victims, when it comes to the victims more than likely they will never regain the amount of money they lost, and much less their stress and hardship they might have endured due to their unfortunate loss.

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