Jordan Belfort is an American former stockbroker, financial criminal and businessman known for his involvement in stock-market manipulation and a penny-stock scam in 1999.
He pleaded guilty to fraud and related crimes, serving 22 months in prison and becoming an FBI informant.
Belfort published the memoir, The Wolf of Wall Street, later adapted into a film.
He now gives motivational speeches and sales seminars, focusing on business ethics and sales skills.
Belfort founded Stratton Oakmont, a brokerage firm linked to IPOs of various companies.
Despite his past, he has reinvented himself as a speaker, author and sales trainer, with a controversial reputation due to his criminal history and business practices.
Early life
Belfort, born in Queens, New York, is the son of an accountant who showed early sales talent.
Before his infamous financial career, he operated a meat and seafood company and sold Italian ice cream with a friend.
Belfort graduated from the American University with a biology degree but later ventured into fraudulent stock schemes, leading to his involvement in stock market manipulation and a penny-stock scam.
In 1987, after bankruptcy, he started selling shares and founded Stratton Oakmont in 1989, known for defrauding investors.
Despite his criminal past, Belfort has reinvented himself as a motivational speaker and author, with a net worth estimated at around $100 million in 2023.
His life story, detailed in his memoir, The Wolf of Wall Street, later adapted into a film, showcases his rise, fall, and subsequent transformation into a sales trainer and speaker.
Net worth
Belfort’s net worth is estimated at -$100 million, due to outstanding restitution.
At his peak in the mid-1990s, his net worth was estimated at $200 million, with suggestions it could have been over $1 billion.
Belfort’s lavish lifestyle included extravagant parties, luxury cars, yachts and mansions.
However, his fraudulent activities led to a significant decline in his net worth, with him being asked to pay back $110 million to swindled investors, of which he still owes $100 million.
Despite his criminal history, Belfort has managed to maintain a substantial net worth through various income sources.
Stockbroking career
Belfort’s stockbroking career began in 1987 when he started working for a brokerage firm, learning the ins and outs of being a stockbroker.
Two years later, in 1989, he was operating his own trading company, Stratton Oakmont.
Belfort, along with his partner Danny Porush, engaged in fraudulent activities like the “pump and dump” scheme, where they manipulated stock prices to defraud investors.
Stratton Oakmont made millions illegally, leading to legal troubles with the Securities and Exchange Commission (SEC) in 1992.
The company faced bans and fines, with Belfort eventually pleading guilty to securities fraud and money laundering in 1999.
Despite his criminal activities, Belfort’s stockbroking career was marked by unethical practices that ultimately led to his downfall and legal repercussions.
Jordan Belfort financial crimes
Belfort’s financial crimes primarily involved securities fraud and money laundering during his time as the owner of his stock brokerage firm, Stratton Oakmont.
In the “pump and dump” scheme, Belfort and his associates manipulated stock prices by using high-pressure sales tactics to mislead investors into buying worthless stocks at inflated prices.
They would then sell off their shares at a profit, leaving investors with essentially worthless stocks.
This fraudulent activity led to Belfort swindling numerous investors out of their money through deceptive practices.
Additionally, Belfort exploited the unregulated nature of penny stocks to manipulate clients into buying them, profiting from both the commissions and the stocks themselves.
These illegal activities not only defrauded investors but also undermined the integrity of the financial markets, leading to legal repercussions and his eventual arrest for securities fraud and money laundering.
Criminal penalty
Belfort faced significant legal consequences for his involvement in financial crimes.
After being prosecuted by the FBI in 1998 for securities fraud and money laundering, Belfort cooperated with authorities in exchange for a reduced four-year prison sentence.
Ultimately, he served 22 months in prison before his release in 2006.
In addition to his prison term, Belfort was ordered to pay a substantial fine of $110.4 million as part of his restitution to the victims of his fraudulent activities.
This financial penalty was a significant part of his punishment, reflecting the severity of the crimes he committed.
Despite the reduced sentence and cooperation with authorities, Belfort’s time in prison and the financial obligations resulting from his crimes were central aspects of his punishment for his illegal activities.
Restitution
Belfort was ordered to pay restitution of $110 million to investors he defrauded during his pump and dump schemes.
Initially, the New York District Business Conduct Committee barred Stratton Oakmont from transactions, and in 1996, the Securities and Exchange Commission (SEC) charged Belfort with money laundering and securities fraud.
Belfort pleaded guilty to fraud related to the pump and dump schemes, which cost investors up to $200 million.
He was sentenced to four years in prison but served 22 months.
Despite the initial restitution order, subsequent hearings led to a judge changing the ruling to a set amount of $10,000 per month.
Belfort’s financial crimes and subsequent restitution obligations have been central to his story, showcasing the legal consequences of his fraudulent activities and the ongoing financial obligations resulting from his past actions.
‘Wolf of Wall Street’ nickname
Belfort’s “Wolf of Wall Street” nickname was self-anointed.
Before the release of Martin Scorsese’s film, he claimed the title for himself, despite disputes from others at Stratton Oakmont.
The nickname, inspired by his aggressive sales tactics and lavish lifestyle, became synonymous with his persona, even though there were conflicting accounts about its origin.
Belfort’s choice to adopt this moniker, along with likening himself to infamous movie villains like Gordon Gekko, Don Corleone and Keyser Soze, contributed to his larger-than-life image and the narrative surrounding his rise and fall in the financial world.
Career Pathways Australia scandal
Belfort’s links to the Career Pathways Australia scandal were uncovered in an investigation that revealed connections between Belfort and the employment company Career Pathways, which had majority ownership of Face to Face Training.
These two brands were heavily promoted at Belfort’s workshops held at Brisbane’s Eatons Hill Hotel.
Belfort conducted two workshops on sales for the staff of Face to Face Training.
Face to Face Training received substantial funding from the state government, with a significant portion allocated for service training and certification, which did not materialize as expected.
The investigation highlighted concerns about the training program being labeled a scam and the certification process being described as a “tick and flick” system.
This scandal raised questions about the legitimacy and effectiveness of the training provided by Career Pathways Australia and its associated brands, shedding light on potential issues within the training and certification industry.
Real estate properties
Belfort has been associated with several real estate properties and houses, some of which have gained attention due to their connection to his life and the film, The Wolf of Wall Street.
One notable property is a mansion on Long Island, featured in the movie, which is currently on the market for nearly $10 million.
This estate boasts equestrian amenities, a 15,000-square-foot mansion with luxurious features like a barbershop, gym, wine cellar, hot tub room and more.
Additionally, another Long Island home where Belfort lived before it was seized by the federal government is back on the market for $3.4 million.
This stucco-and-stone mansion offers five bedrooms, six baths, a sunken ballroom-sized living room, and custom-painted murals, among other lavish features.
These properties reflect the opulent lifestyle associated with Belfort and have garnered attention for their connection to his story and the film adaptation of his life.
Motivation Speaking career
Belfort transitioned into a motivational speaking career after his involvement in financial crimes.
Despite his controversial past as a stockbroker, he has become a sought-after motivational speaker, sharing his experiences and lessons learned from his rise and fall.
Belfort’s motivational speeches aim to inspire audiences by emphasizing personal and professional growth, overcoming challenges, and achieving success.
His speaking engagements focus on topics like business ethics, sales skills and personal development.
Belfort is known for his engaging delivery style, blending entertainment, education and motivation to captivate his audience.
Through his speeches, he aims to move his listeners to take action, make positive changes, and strive for excellence in their endeavors.
Despite his past mistakes, Belfort has leveraged his story to motivate and empower others, showcasing resilience and the potential for personal transformation.
Writing career
Belfort’s writing career is not primarily focused on traditional writing like novels or screenplays but rather on sharing his experiences and expertise through books and training materials related to sales, business success and personal development.
He has authored two international bestselling memoirs, The Wolf of Wall Street and Catching the Wolf of Wall Street, which have been published in over forty countries and translated into eighteen languages.
These books detail his rise and fall in the financial world, providing insights into his life and the lessons learned from his experiences.
Additionally, Belfort has developed a comprehensive training system known as the Straight Line System, designed to empower individuals and companies to achieve wealth and success ethically.
His training sessions range from introductory talks to in-depth programs tailored to enhance marketing and sales results.
Through his writing and training materials, Belfort aims to share his knowledge and strategies for achieving business success while emphasizing integrity and ethical practices.
Personal life
Belfort’s family has been a significant part of his life, marked by marriages, divorces and children.
He was first married to Denise Lombardo, with whom he tied the knot in 1987 but later divorced in 1991.
His second marriage was to Nadine Caridi in 1991, resulting in the birth of two children, a daughter named Chandler and a son named Carter.
However, this marriage also ended in divorce in 2005. Belfort’s third relationship was with Anne Koppe, although they were not officially married.
Currently, he is not married but is in a relationship with model Cristina Invernizzi since 2021.
Belfort’s family life has been intertwined with his personal and professional journey, reflecting the complexities and challenges he has faced over the years.