What crime did jordan belfort commit?

The Infamous Story of Jordan Belfort: The Wolf of Wall Street’s Crimes

Jordan Belfort, also known as the Wolf of Wall Street, is a notorious stockbroker and con artist who was involved in a multitude of criminal activities, including securities fraud, wire fraud, and money laundering. In this article, we will delve into the specifics of what crimes Belfort committed, his tactics, and the consequences of his actions.

**The Rags-to-Riches Scam: Belfort’s Early Crimes**

In the late 1980s, Belfort, a former college dropout, started working in the financial industry. He founded Stratton Oakmont, an investment firm based on Long Island, New York, which initially gained a reputation for selling questionable stockbroker training courses. However, his true intent was to manipulate and swindle his clients out of millions of dollars.

**The Stock-Foothing Scheme: Pump and Dump Operations**

Belfort’s scheme involved convincing unsuspecting investors to purchase worthless or unregistered securities, also known as "pump and dump" operations. Here’s how it worked:

• Belfort would select a struggling company, typically with low share prices and little trading activity.
• He would use fake promotions, hyping the stock to attract more investors.
• Stratton Oakmont would artificially inflate the stock price through false or inflated reports about the company’s financial health and potential growth.
• The real goal was to drive the stock price up and cash in by selling shares quickly, taking a substantial profit.

**Money Laundering and Criminal Organizations**

To further mask the origins of the stolen money and keep the fraud afloat, Belfort employed several money laundering tactics, including:

• Using straw companies and fake transactions to transfer funds to offshore accounts
• Accepting large sums of cash and funneling it into shell companies and bank accounts
• Associating with criminal organizations and corrupt bank officials to launder funds and maintain his fraud

**The Feds Finally Catch Up**>

The Feds Finally Catch Up

After years of evading the law, **the Federal Bureau of Investigation (FBI) and Securities and Exchange Commission (SEC) launched a comprehensive investigation** into Stratton Oakmont’s operations in 1993. In 1996, the FBI conducted a series of raids, arresting Belfort, several Stratton Oakmont executives, and others connected to the firm.

**In 1998, Belfort was sentenced to 22 months in federal prison for fraud, racketeering, and other crimes**, despite maintaining a lavish lifestyle, boasting assets worth over $110 million. However, after completing his sentence, he would face more charges.

Belfort’s Downward Spiral and Descent into Drug Addiction

While Belfort was free from prison, **his world began to crumble due to addiction and his continued criminal activities**:

* He began using illegal substances, such as quaaludes, and later crack cocaine.
* **In 2005, Belfort was convicted on charges related to insider trading and racketeering, receiving an additional sentence of 51 months**.

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The Rise and Fall of Stratton Oakmont: Statistics and Fallout>

The Rise and Fall of Stratton Oakmont: Statistics and Fallout

Here are some **frightening statistics** regarding the scope of Stratton Oakmont’s fraudulent activities:

* **$1 billion in fraudulently sold securities**
* **30,000+ victims**
* **Over $10 million in fees for fake stock brokerage services**

As a result of Stratton Oakmont’s schemes:

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* **Investors lost an estimated $1 billion**
* **Thousands of people, including those invested in fake stock and investors who thought they had real investments, suffered financially and emotionally**

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