Microcap stock fraud Essays

  • Jordan Belfort Case Analysis

    807 Words  | 2 Pages

    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

  • Jordan Belfort: The Wolf of Wall Street

    949 Words  | 2 Pages

    Jordan Belfort: The Wolf of Wall Street History of the case Definition of Crime Laws Violated 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

  • Internal Auditing: Stock Market and Fraud

    1250 Words  | 3 Pages

    Definition of fraud: It is the conscious intention to steal or cause an individual to lose or give up something that is rightfully theirs. Stock Fraud: When brokers or people in the stock market influence or make investors buy stock based on false information which is a major violation of the laws put in place in order to protect us from these scandals and in usual cases, it results into a loss for investors. The main targets of stock market investment fraud are seniors. In the market it is estimated

  • Revenue Recognition Case Study

    1394 Words  | 3 Pages

    Weirich and Rouse mentioned the SEC (1998) reported 62% of the accounting fraud cases were issues around revenue recognition and indicated this to be a big problem (p.57). This is consistent to COSO (2010) reported 60% of fraud cases involves revenue recognition (p.5). Weirich and Rouse quoted Walter Schuetze, chief accountant in the Enforcement Division and former chief accountant of the Commission

  • Jordan Belfort Case Study

    3181 Words  | 7 Pages

    Jordan Belfort: Money Outweighing Punishment The stock market is an enigma to the average individual, as they cannot fathom or predict what the stock market will do. Due to this lack of knowledge, investors typically rely on a knowledgeable individual who inspires the confidence that they can turn their investments into a profit. This trust allowed Jordan Belfort to convince individuals to buy inferior stocks with the belief that they were going to make a fortune, all while he became wealthy instead