Brokerage House | |
Industry | stock exchange |
---|---|
Founded | 1989 |
Founder | Jordan Belfort |
Defunct | December 1996 |
Headquarters | 1979 Marcus Avenue, Lake Success, New York, US |
Area served | United States |
| |
Revenue | $3 billion (1996) |
1,378 |
- Stratton Manual Jordan Belfort Net Worth
- Jordan Belfort Net Worth
- Stratton Manual Jordan Belfort Girlfriend
Stratton Oakmont, Inc. was a Long Island, New York, 'over-the-counter' brokerage house founded in 1989 by Jordan Belfort and Danny Porush. It defrauded many shareholders leading to the arrest and incarceration of several executives, and the closing of the firm in 1996.
Jordan Belfort and Danny Porush were doing some incredible things from an entrepreneur standpoint back in the 1990's as portrayed in the film 'The Wolf of Wa. This is a reproduction copy of the original manuscript produced by Jordan Belfort for his Stratton Oakmont employees. It comes printed in good quality paper and bound with a metal clip. This guide provides motivational articles, sales scripts and pictorial diagrams for sales flow. Stratton Oakmont was an over the counter brokerage firm founded by Jordan Belfort and Danny Porush. Throughout the history of the firm, they were notoriously known for defrauding their investors and laundering any proceeds collected from such transactions. It may seem like a repeat of an old story involving the Long Island boiler room where brokers got rich on empty promises. The firm was made famous in the film 'Wolf of Wall Street,' with Leonardo DiCaprio playing Stratton Oakmont founder Jordan Belfort. Jordan Belfort is a former Wall Street trader who was guilty of crimes related to stock market manipulation. Belfort is a notorious public figure who wrote two memoirs: the first, The Wolf of Wall.
Section 230 of the Communications Decency Act was created in response to Stratton Oakmont, Inc. v. Prodigy Services Co..
History[edit]
![Jordan Jordan](/uploads/1/1/8/7/118795467/149331471.jpg)
Jordan Belfort founded Stratton Oakmont in 1989 with Danny Porush and Brian Blake.[1] Earlier, Belfort opened a franchise of Stratton Securities, a minor league broker-dealer, and then bought out the entire firm.[2] Stratton Oakmont became the largest OTC firm in the United States during the late 1980s and 1990s,[3] responsible for the initial public offering of 35 companies, including Steve Madden Ltd.[4] The firm did not have a product control function to verify prices of its positions and monitor trading activity.[5]
Stratton Oakmont participated in pump-and-dump schemes, a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme 'dump' their overvalued shares, the price falls and investors lose their money. Stratton Oakmont would also try to maintain the price of a stock by refusing to accept or process orders to sell the stock.[6] In 1995, the firm sued Prodigy Services Co. for libel in a New York court, in a case that had wide legal implications.[7]
The firm was under near-constant scrutiny from the NASD from 1989 onward. Finally, in April 1996, the New York District Business Conduct Committee barred Stratton Oakmont from conducting principal retail transactions for a year. Stratton Oakmont appealed to the NASD National Business Conduct Committee. In December, the NBCC expelled Stratton Oakmont from the NASD, putting the firm out of business. Officials described Stratton Oakmont as 'one of the worst actors' in the securities industry, with a history of 'obvious disregard for all rules of fair practice.'[8]
In 1999, Belfort and Porush were indicted for securities fraud and money laundering.[9] They pleaded guilty and admitted that for seven years they operated a scheme in which they manipulated the stock of at least 34 companies.[10] As part of their plea deal, they received less prison time, and cooperated with prosecutors in their investigations of other brokerage houses.[10]
In popular culture[edit]
The 2013 film The Wolf of Wall Street is a drama based on the memoirs of Jordan Belfort, directed by Martin Scorsese. Leonardo DiCaprio stars as Belfort[11] and Jonah Hill plays fictional character Donnie Azoff,[12] who is loosely based on Porush.
See also[edit]
References[edit]
- ^'The Wolf of Wall Street (2013)'. History vs. Hollywood. Retrieved August 5, 2015.
- ^Haglund, David (December 31, 2013). 'How Accurate Is The Wolf of Wall Street?'. Slate. Retrieved January 11, 2015.
- ^Park, Sang (February 6, 2014). 'Cinema Weekly: The Wolf of Wall Street'. The Exonian. Retrieved August 5, 2015.
- ^'Meet Jordan Belfort the real Wolf of Wall Street'. Interview & Review. May 14, 2014. Archived from the original on July 8, 2014. Retrieved August 5, 2015.
- ^Schwartz, Bob (June 11, 1991). 'Trade Group Probing Stock Sales of 3 Firms : Inquiry: Offerings of International Physical Systems, Ropak Laboratories and DVI Financial were underwritten by a brokerage being investigated'. Los Angeles Times. Retrieved August 5, 2015.
- ^Mulligan, Thomas S. (April 17, 1997). 'Investor Wins $10 Million in Penny-Stock Broker Case'. Los Angeles Times. Retrieved January 11, 2015.
- ^Stratton Oakmont, Inc. v. Prodigy Services Co., No. 31063/94, 1995 WL 323710, 1995 N.Y. Misc. LEXIS 229Archived April 17, 2009, at the Wayback Machine (N.Y. Sup. Ct. 1995).
- ^'NASD Regulation Expels Stratton Oakmont; Principals Also Barred'. FINRA. December 5, 1996. Retrieved January 11, 2015.
- ^Stefania Bianchi; Mahmoud Habboush (May 19, 2014). 'Wolf of Wall Street Belfort Is Aiming for $100 Million Pay'. Bloomberg. Retrieved May 21, 2014.
- ^ abWyatt, Edward (September 24, 1999). 'Stratton Oakmont Executives Admit Stock Manipulation'. New York Times. Retrieved August 5, 2015.
- ^Nashawaty, Chris (February 17, 2011). 'Leonardo DiCaprio and Martin Scorsese teaming up again for 'The Wolf of Wall Street. ''. Entertainment Weekly. Retrieved January 17, 2011.
- ^Sacks, Ethan (June 17, 2013). ''The Wolf of Wall Street' Trailer Released Shows Leonardo DiCaprio at Debaucherous Best'. NYDailyNews.com. Daily News, LP. Retrieved June 19, 2013.
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Stratton Oakmont founding - consistency issue[edit]
The Danny Porush page claims that:Stratton Oakmont was a Long Island, New York, 'over-the-counter' brokerage house founded by Jordan Belfort and Danny Porush.(link)
The Stratton Oakmont page on the other hand...Stratton Oakmont was a Long Island, New York, 'over-the-counter' brokerage house founded by Jordan Belfort and Kenny Greene, and later bought by Danny Porush.(link)
Clearly there is an inconsistency here on who actually founded the firm...
Some quick googling shows that NY state requires a 'Certificate Of Incorporation';but does not seem to post them online, so interested parties could presumably solve this with a physical source reference or something. [(link)]Being as I am out of state and not interested enough, will pass on doing it, but placing this on both talk pages as a general FYI of the issue to interested parties.74.140.37.168 (talk) 04:30, 20 January 2014 (UTC)
Meh... this may not be a wikipedia 'inconsistency' as much as a consequence of the fraud. Part of Belfort and Porush's fraud was misrepresenting the true ownership of various companies, including Stratton Oakmont.
Trying to answer the question of 'who founded corporation x,' when the certificate of incorporation may say one thing, someone later was convicted on an indictment alleging that the real ownership was different, and someone who testified in the case then wrote a memoir saying a third thing -- its an exercise in metaphysics.
I suggest that both pages, instead of making claims about who actually founded it, instead note the different statements in conflicting sources.
Djcheburashka (talk) 05:02, 28 October 2014 (UTC)
- Good idea here - Someone already modified the Porush page but I went ahead and took care of the Stratton Oakmont page. If there is consensus that both should match, let me know and I can edit the Porush page as well.Aleding (talk) 17:06, 28 October 2014 (UTC)
Stratton Manual Jordan Belfort Net Worth
Thank you -- and I appreciate your change. While editing the Belfort page, I also came across this: http://www.slate.com/blogs/browbeat/2013/12/31/wolf_of_wall_street_true_story_jordan_belfort_and_other_real_people_in_dicaprio.html which tells yet a third story of the origin of Stratton Oakmont. I'm adding it in.
Every time I google one of the claims on the SO or Belfort pages about non-criminal history of activity, it turns out to be false. I have a working hypothesis that every single thing that Belfort has ever said -- other than that he committed fraud -- is a lie.
Djcheburashka (talk) 03:12, 1 November 2014 (UTC)
Jordan Belfort Net Worth
'Largest OTC broker'?[edit]
What does that even mean? Most shares traded per day? Most IPOs? Most employees? I do not get it.
The period when SO is supposed to have been the 'largest OTC broker' begins within a year of when Belfort took control. He left (if this part is true -- maybe its another lie) Rothschild after Black Monday which was October, 1987. 1987 is when the SEC says SO was already going, and the NASD launched its first attempt to shut SO down by 1989.
SO had no legitimate operation. I've seen this 'largest OTC' thing lots of places -- does anyone know what its supposed to refer to?
Djcheburashka (talk) 05:48, 1 November 2014 (UTC)
Typically largest broker would refer to assets under management, but I’m not sure if AUM is what is being referenced. I’ll do some digging and update the article to clarify “largest by assets under management” if I find anything. Jgalt87 (talk) 13:26, 26 March 2019 (UTC)
Stratton Manual Jordan Belfort Girlfriend
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