Jordan Belfort is a name most people would recognize, especially after his memoir, The Wolf of Wall Street, which recently became a blockbuster film starring Leonardo DiCaprio. The question some may ask may be, is all this glorification justified? Jordan Belfort became so famous, or as some would counter, infamous, from his role swindling millions of dollars from investors in the 1990s through his investment firm, Stratton Oakmont. To date, Jordan Belfort owes more than $110 million to former clients, and partners. Accounts vary but everyone seems to agree that the actual amount paid by Belfort to date is much less than $110 million. If Jordan isn’t paying his retribution, then what exactly is his punishment for his many heinous crimes? Jordan …show more content…
Belfort has hurt many human beings and should be expected to pay for his crimes which are why he has been ordered by the courts to pay back $110 million to those who suffered from his selfish plunders. One thing that was never clarified however was how long it would take for the full amount to be paid back. The only rule to which Belfort was required to accommodate, was that at least half of his annual net income would have to go toward the reimbursement of the financially crushed families; however, to date Jordan is not even holding up to that very simple and required standard set by the law. Yet somehow Jordan is being allowed to go about making more than he did in his “glory days” and only paying back a measly 8.6% of his debt in an incredible 10 years. Jordan Belfort is a criminal who has not shown any remorse for his crimes, it is for this reason that Belfort should be spending the rest of his life behind bars rather than in luxury with a plentiful amount of money. Jordan Ross Belfort was born in Queens, New York, on July 9, 1962.
From a young age, Jordan always had a natural talent as a salesman. At an early age, he operated a door-to-door seafood and meat business in the 1980s. Upon the failure of those businesses, Belfort began selling stocks in 1987 at the age of 25. After two years of selling stocks, Jordan started his own investment operation, Stratton Oakmont, by 1989. With his partner, Danny Porush, Jordan gathered tremendous amounts of cash using a “pump and dump” scheme. Using this system, his brokers pushed stocks onto their unsuspecting clients, which helped inflate the stocks’ prices, and then the company would sell off its own holdings in these stocks at a great profit. The firm made millions illegally, defrauding its investors. The Securities Exchange Commission began efforts to stop the company's delinquent ways in 1992. In 1999, Belfort pleaded guilty to securities fraud and money laundering. He was sentenced in 2003 to four years in prison, but only served 22 months. (Source 6)
To many, Jordan’s story was view as comical what with the mountains of drugs and bountiful outrageous parties. However, Jordan Belfort remains a scot-free criminal, allowed to live in riches while his victims still await their reimbursement. Awash with cash, Belfort lived the high life. He spent lavishly, buying a mansion, sports cars and other expensive toys.
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He also developed a serious drug habit, becoming especially fond of Quaaludes. Belfort was involved in several accidents due to his drug use, including crashing his helicopter into his own yard and sinking his yacht—which once belonged to designer Coco Chanel—while under the influence. His addiction also contributed to the break-up of his second marriage. Yet this is the same person many view as an almost role-model. Belfort encouraged reckless behavior in his employees, as well. Substance abuse, sex, and horseplay were the norm at Stratton Oakmont's Long Island New York, offices. An assistant at the firm was once paid $5,000 to allow some of the company's traders to shave her head. The employees were also urged to live by the motto, "Don't hang up until the customer buys or dies." Their hard-sell tactics paid off in the short term. As Belfort told the New York Post, "It's easier to get rich quick when you don't follow the rules." As The U.S. Securities and Exchange Commission began to close in on him, the reality of jail time became more and more clear. After pleading guilty to securities fraud and money laundering, Belfort agreed to wear a wire to help authorities take down the remaining members of Stratton Oakmont, in an effort to reduce his prison sentence. During his short 22 months in prison, Belfort took an interest in writing and wrote his first memoir, The Wolf of Wall Street. Comedian Tommy Chong, one of Belfort's cellmates during this time, encouraged the former stockbroker to write about his experiences. The following year, Belfort released a second memoir, Catching the Wolf of Wall Street, which encompassed his life following his arrest. In 2013, a film adaptation of The Wolf of Wall Street, directed by Martin Scorsese and starring Leonardo DiCaprio as Belfort, hit the big screen. Belfort promised to give back 100% of the money made from both his books as well as his movie, yet only $14 million dollars found their way back to victims of the $110 million he owes. This is especially incredible considering that his movie alone grossed over $300 million dollars. (Source 5) Belfort has the salesman’s look: a flash of white teeth, tan skin, all of which radiate a youthfulness that’s impressive considering his age (51) and former drug habit. “A testament to the regenerative qualities of the human liver,” he likes to say of himself, with a heavy Long Island brogue. “I didn’t go through puberty until later in the curve. I didn’t feel confident in high school. Ninety percent of my focus was hot girls. I thought if you got rich, you’d get the girls. A lot of guys think that. And it’s true—it worked for me. It worked really well. When I really hit it, I had all these gorgeous women throw themselves at me. But the problem with that stuff is it doesn’t really change you.” (Source 7) In just another average tennis morning, Jordan again displays his immaculate wealth he has collected over the years. Jordan starts of by meeting with Tarango his trainer and begins to stretch. Tarango is not any tennis instructor. The former pro and commentator has been rated one of the top over-40 players in the world. “Obsessive-compulsive talent,” Tarango says of Belfort. “He’s not autistic, but he could be. He just can go into that tunnel.” Belfort is so committed to improving his tennis strokes that he and Tarango play together every morning. Belfort wanted to play on weekends, too. His sessions are tutorials. Behind the baseline, Belfort props up his smartphone to videotape himself in action; later, at night, he’ll study his technique in bed with his fiancée, Anne Koppe. His intensity can be overwhelming, but it’s all part of his recipe for success, a life philosophy he’s now hit the road with in his new incarnation as motivational speaker for hire. “I believe in total immersion,” one of his beliefs goes. “If you want to be rich, you have to program your mind to be rich. You have to unlearn all the thoughts that were making you poor and replace them with new thoughts—rich thoughts.”(Source 3) These days, Belfort lives in Los Angeles, California, to be close to his two children, Chandler and Carter, from his second marriage. He now operates his own company, which provides sales training and markets Straight Line training programs aimed at building wealth. Belfort claims to have straightened up his act. In an interview with the Daily Mail, he explained, "I'm a wolf who became a more benevolent character." Belfort has reportedly paid $14 million of the $110 million fine against him. Belfort has at least made an effort to turn his life around, including putting away his closest partners and associates. Wearing a wire, Belfort worked with Detective Coleman of the FBI and other federal officials to make cases against his partners and associates. By cutting a deal, Belfort succeeded in persuading a judge to cut the lengthy sentence awaiting him and spare himself heavy prison time. Today Jordan claims to make more money from Straight Line (a sales and persuasion technique that Jordan Belfort created on Wall Street and implemented in his business to build one of the fastest growing brokerage firms in Wall Street history) sales training then he ever did with Stratton Oakmont. While this may seem to be quite a productive turnaround from his old life style, it simply does not add up why he has only paid back 12.7% of his debts to the innocent victims of Stratton’s ill-gotten gains. Prosecutors said that he had fled to Australia to avoid taxes and conceal his assets from his victims. In May 2014, Belfort said he planned to pay off the remaining restitution through speaking fees by the end of 2014: "My goal is to make north of $100 million so I am paying back everyone this year.” While Belfort also claimed on his website and elsewhere that "100% of the profit" from his books and the Wolf of Wall Street film was being turned over to victims. In June, 2014, spokesmen for the U.S. attorney said Belfort's claim was "not factual." BusinessWeek reported that of approximately $1.2 million paid to Belfort in connection with the film, Belfort had paid only $21,000 toward his restitution obligations. By September, 2014, the amount Belfort had paid toward his restitution debt still stood at $14.6 million. (Source 2) By now it is clear that Jordan Belfort was a fraudulent man who let his ethics and moral go down the drain.
However, Jordan has been given the opportunity to redeem himself by doing the right thing and pay back the 1,513 people who had fallen victim to Belfort’s crimes. (Source 8) While Jordan did take the initiative to help federal agents take down several members of Stratton Oakmont it does not justify the fact that he’s only been able to pay back $14 million dollars of the required $110 million in restitution. Especially since he claims to be currently making more now from Straight Line Persuasion than he ever did at Stratton. Before going to prison Jordan pocketed $100 million that year from Stratton Oakmont, implying that today he is somehow able to make more than that. If that is indeed the case, then Jordan, assuming he is paying 50% of his income toward restitution, should have easily been able to make much more than a measly $14
million.
Stewart was convicted of conspiracy, perjury and obstruction of justice in 2001, and for using insider information to sell shares of the company ImClone Systems. This type of fraud damages the confidence of investors, it makes them perceive the lack of equality.
Martha Stewart was charged with securities fraud, obstruction of justice, conspiracy, and civil charges. She had made false statements to F.B.I., SEC, and investors. She withhold information from these organizations about the selling of her stocks with in the company of ImClone. She was convicted and sentence to five months in prison, five months of house arrest, and a full two years of probation.
After 8 years the SEC finally found the scheme controlled by Madoff. In December 2008 Madoff was found guilty; however, stayed under house arrest by the until his trial in March of 2009. He was not arrested because of the 10-million-dollar payment which allowed him to stay under home surveillance until the trial. While at home, he and his wife, mailed valuables such as jewels and jewelry to family members. In March of 2009, Bernard Madoff was finally found guilty and was sentenced to 150 years in prison. On the day of his arrest, the FBI found 100 checks that totaled $173 million dollars that were made to friends, family, and
The PBS Frontline Documentary The Untouchables shined light on the claim that wealthier people in today’s society get off easier when they break the law. During the financial crisis of 2008, it was said that fraud was committed when many mortgage bankers and high-end executives on Wall Street knowingly bought loan portfolios that didn’t meet their policy credit standards. Even with the evidence in place, no one was arrested and held responsible for a stock crash that nearly destroyed the entire financial system of the United States. With a powerful justice system and justifiable evidence in place, no was prosecuted. Did the justice system not take the necessary steps to ensure that justice was served
In the Frontline documentary “The Madoff Affair”, it is revealed and painfully evident that the ability to predict, prevent, and prosecute white collar crime is flawed and highly complicated even for the government. Frontline takes a look at the first global Ponzi scheme in history and helps create a better understanding of the illegal conduct that led to the rise and fall of Bernie Madoff and those associated with his empire (Frontline, 2017). When the leadership at the top of any organization is founded on lies, secrecy, and empowered by the leaders within the industry, the corruption is deep and difficult to prosecute. The largest stock market fraud in history reinforces the need for better government regulations, enforcement of the regulations, and oversight, especially in it’s own backyard (Yang, 2014).
In the early 2000’s, America’s famous and favorite home cooker made headlines, and not in a positive way. Headlines that would forever change that way people thought about her. Martha Stewart was convicted for misleading federal investigators who were looking into allegations of insider trading which raised several ethical issues. Is being to rich a reason to convict Martha of this crime? If everyone does it, why hold Martha to a higher standard? In this case, insider trading was clearly evident in Martha Stewarts Case.
Greed is inevitably a quality humans are unable to escape. Regardless of the time period, humans have notoriously been characterized by their greedy instincts. These greedy tendencies have plagued humans throughout history and have been prevalent within some of the most famous people of all time. Such tendencies were present in Julius Caesar, the ruthless roman general and recent bitch. However, these devilish instincts have most recently been found in criminal Robert Rizzo, mastermind behind the City of Bell Scandal. During his lengthy involvement in the scandal of the city of Bell, California, Rizzo willingly participated in fraud, over-compensation, bribery, and theft. While he was found guilty of misappropriation of public funds and was sentenced to an $8.8 million dollar fine and a twelve year prison sentence, I do not believe that Rizzo received punishment that matched the severity of his ruthless actions. (Associated Press) The punishments given to criminal Robert Rizzo did not accurately match the ruthless of his actions; his involvement with theft, bribery, and severe over-compensation should have been met with a lengthier jail sentence and a heftier fine.
On March 5, 2004, Martha Stewart, a successful business woman and the founder of Martha Stewart Living Omnimedia was sentenced by the jury to five months in prison at a minimum-security federal prison, another five months of home confinement along with 19 months of probation and $30,00 fine. Stewart was found guilty on four counts in what seemed to be known as white-collar crime. In this paper, I will briefly explain, identify and answer respectively in order on the three topics of, what crime did Martha Stewart commit, what evidence did the jury appear to find most convincing and whether should Stewart have received prison time. I will be using my own ideas along with the researches from reputable and credible sources to support my ideas.
Jordan Belfort throughout his entire life subverted the law for his own financial gain, always seeing money as worth the risk in the decisions he made. His decisions were made by a rational mind of his own volition, considering the long-term possibilities and how to stay ahead of his pursuers. He constructed an environment with Stratton Oakmont to enable this behaviour, as well as corrupt those around him to follow in his footsteps. This lead to his repeated violations of laws to generate wealth when his fear of punishment was lower than that of the rewards he could potentially gain. It was only when he was confronted with the reality of his punishment and experienced it directly that he was finally deterred from his criminal behaviour.
Bernard Madoff had full control of the organizational leadership of Bernard Madoff Investments Securities LLC. Madoff used charisma to convince his friends, members of elite groups, and his employees to believe in him. He tricked his clients into believing that they were investing in something special. He would often turn potential investors down, which helped Bernard in targeting the investors with more money to invest. Bernard Madoff created a system which promised high returns in the short term and was nothing but the Ponzi scheme. The system’s idea relied on funds from the new investors to pay misrepresented and extremely high returns to existing investors. He was doing this for years; convincing wealthy individuals and charities to invest billions of dollars into his hedge fund. And they did so because of the extremely high returns, which were promised by Madoff’s firm. If anyone would have looked deeply into the structure of his firm, it would have definitely shown that something is wrong. This is because nobody can make such big money in the market, especially if no one else could at the time. How could one person, Madoff, hold all of his clients’ assets, price them, and manage them? It is clearly a conflict of interest. His company was showing high profits year after year; despite most of the companies in the market having losses. In fact, Bernard Madoff’s case is absolutely stunning when you consider the range and number of investors who got caught up in it.
Bernie Madoff is one of the greatest conman in history. The Bernie Madoff scandal takes the gold as one of the top ponzi scheme in America. Madoff started the Wall Street firm, Bernard L. Madoff Investment Securities LLC, in 1960. Starting off as a penny stock trader with five thousand dollars, earned from his workings as a lifeguard and sprinkler installer, his firm began to grow with the support of his father-in-law, Saul Alpern, who helped by referred a group of close friends and family. Originally, his firm made markets by the National Quotations Bureau’s Pink Sheets. However, in order to compete with the bigger firms that were trading on the New York Stock Exchange floor, his firm started to use very intelligent computer software that help distributed their quotes in second’s rater then minutes. This software later became the NASDAQ that we know today. In December of 2008 Bernard Madoff confessed that he had embezzling billions of dollars from investors. It is estimated to have lasted nearly two decades, and stolen approximately $64.8 billion. On December 11, 2008 he was arreste...
Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sexuality he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in restitution to any swindled stock buyers of his brokerage firm (A&E Networks Television). Though his lavish spending and berserk party lifestyle was consumed by excessive greed, he displayed both positive and negative aspects of business communications.
This case illustrated that there were real consequences to white collar crime. In addition to paying the fifty million dollar fine, he relinquished another fifty million dollars of his illegal trading profits. (He still had millions remaining, however, from his illegal gains.) His actual prison sentence was three years, yet he served only twenty-two months in the federal prison at Lompoc, California, which was known to have a “country-club” atmosphere.
Jordan Belfort is the notorious 1990’s stockbroker who saw himself earning fifty million dollars a year operating a penny stock boiler room from his Stratton Oakmont, Inc. brokerage firm. Corrupted by drugs, money, and sex, he went from being an innocent twenty – two year old on the fringe of a new life to manipulating the system in his infamous “pump and dump” scheme. As a stock swindler, he would motivate his young brokers through insane presentations to rile them up as they defrauded investors with duplicitous stock sales. Toward the end of this debauchery tale he was convicted for securities fraud and money laundering for which he was sentenced to twenty – two months in prison as well as recompensing two – hundred million in restitution to any swindled stock buyers of his brokerage firm. Though his lavish spending and berserk party lifestyle was consumed by excessive greed, he displayed both positive and negative aspects of business communications.
...as up to, but he didn’t. he stayed at Stratton-Oakmont and continued his old ways, he learned that he was being investigated again and tried to hide all of his money in Swiss bank accounts but the banker he was doing business with got caught in America for sexual assault and turned Belfort in to get away with it. Belfort was exploited and arrested; he went “undercover” to incriminate his friends and other brokers to get less jail time. Belfort was sentenced to 2 years in a minimum security prison, which was more like a country club, and ordered to pay back 150 million dollars to the people and companies that Stratton-Oakmont had stolen money from. Belfort was released from prison and now speaks at investment seminars to help pay back the restitution of 150 million that he owes. If he does not pay it back in the next ten years, he will be ordered back to jail.