Belfort started his career as a stockbroker at the L.F. Rothschild firm,[16] before founding the brokerage firm Stratton Oakmont. Stratton Oakmont functioned as a boiler room that marketed penny stocks and defrauded investors with stock sales.[17]
During his years as a stock swindler, Belfort developed a lifestyle that consisted of lavish parties and intensive use of the drug methaqualone—sold to him under the brand name "Quaalude"—that resulted in a serious addiction.[2][18] Stratton Oakmont employed over 1,000 stock brokers and was involved in stock issues totaling more than US$1 billion, including an equity raising for footwear company Steve Madden Ltd. The notoriety of the firm, targeted by law enforcement officials in the late 1990s, inspired the film Boiler Room (2000),[19] as well as the 2013 biopic The Wolf of Wall Street.
Alabama Securities Commissioner Joseph Borg formed a multi-state task force that led to the prosecution of Stratton Oakmont, after his office was inundated with complaints regarding the brokerage.[20] Belfort's firm was eventually shut down in 1998 and he was indicted for securities fraud and money laundering.[21]
After cooperating with the FBI, Belfort served 22 months in federal prison for a "pump and dump" scheme that led to investor losses of approximately US$200 million. Belfort was ordered to pay back $110.4 million that he swindled from stock buyers.[22] Belfort met Tommy Chong while serving his sentence, and Chong encouraged Belfort to write of his experiences as a stockbroker. The pair remained friends after their release from prison.[23]
Belfort started his career as a stockbroker at the L.F. Rothschild firm,[16] before founding the brokerage firm Stratton Oakmont. Stratton Oakmont functioned as a boiler room that marketed penny stocks and defrauded investors with stock sales.[17]
During his years as a stock swindler, Belfort developed a lifestyle that consisted of lavish parties and intensive use of the drug methaqualone—sold to him under the brand name "Quaalude"—that resulted in a serious addiction.[2][18] Stratton Oakmont employed over 1,000 stock brokers and was involved in stock issues totaling more than US$1 billion, including an equity raising for footwear company Steve Madden Ltd. The notoriety of the firm, targeted by law enforcement officials in the late 1990s, inspired the film Boiler Room (2000),[19] as well as the 2013 biopic The Wolf of Wall Street.
Alabama Securities Commissioner Joseph Borg formed a multi-state task force that led to the prosecution of Stratton Oakmont, after his office was inundated with complaints regarding the brokerage.[20] Belfort's firm was eventually shut down in 1998 and he was indicted for securities fraud and money laundering.[21]
After cooperating with the FBI, Belfort served 22 months in federal prison for a "pump and dump" scheme that led to investor losses of approximately US$200 million. Belfort was ordered to pay back $110.4 million that he swindled from stock buyers.[22] Belfort met Tommy Chong while serving his sentence, and Chong encouraged Belfort to write of his experiences as a stockbroker. The pair remained friends after their release from prison.[23]
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