Jordan Belfort’s Net Worth And Decline From Broker To Bankruptcy

What is Jordan Belfort’s Net Worth?

Jordan Belfort, an American ex-stockbroker, a convicted felon, and author, currently holds a net worth estimated at negative $100 million.

During the period from 1989 to 1996, Belfort operated Stratton Oakmont, a financial firm notorious for orchestrating pump-and-dump schemes.

These schemes defrauded countless individuals of hundreds of millions of dollars.

In 1999, both Belfort and his co-founder, Danny Porush, faced indictments for securities fraud and money laundering, subsequently pleading guilty.

They received reduced sentences in exchange for assisting prosecutors.

Jordan Belfort's Net Worth
Jordan Belfort’s Net Worth

Belfort’s tumultuous life loosely inspired the 2013 film “The Wolf of Wall Street,” featuring Leonardo DiCaprio and directed by Martin Scorsese.

Critics argue that the film, by glamorizing Belfort’s actions, failed to accurately depict the devastating impact of his fraudulent schemes on the victims, many of whom were ordinary people facing significant financial losses.

Moreover, Belfort’s cameo appearance in the movie’s conclusion further propelled his fame, enabling him to transition into a career as a motivational speaker.

In contrast, the 2000 film “Boiler Room,” drawing inspiration from Belfort and Stratton Oakmont, offers a more balanced portrayal of the ramifications of financial fraud on its victims.

Repayment Process

During Jordan Belfort’s fraudulent activities, he unlawfully obtained approximately $200 million from 1,513 victims.

Upon his sentencing in 2003, authorities mandated him to reimburse $110 million as restitution.

After serving a reduced four-year prison sentence due to his cooperation with the FBI, which included wearing a wire to implicate former partners and associates, Belfort was released after serving 22 months, in April 2008.

Initially, the terms of his restitution required him to allocate 50% of his gross income to his 1,513 victims.

He contributed $700,000 towards his restitution from 2007 to 2009, but no payments were made in 2010.

In 2011, Belfort sold the film rights to his two memoirs to Red Granite Pictures for $1.045 million. They made an upfront payment of $940,500, with an additional $250,000 expected in 2012.

As per his restitution terms, he should have disbursed around $500,000 to his victims in 2011.

However, only $21,000 was paid that year.

In 2012, the US government intervened, persuading Red Granite to remit $125,000 (equivalent to half of Belfort’s $250,000 payment) directly.

Consequently, his total payment for 2012 amounted to $158,000.

In 2013, the United States government agreed to modify Jordan Belfort’s restitution plan, transitioning from a requirement of 50% of all gross earnings to a minimum payment of $10,000 per month for life.

As of now, Jordan has repaid approximately $13-14 million towards restitution, with the majority ($11 million) originating from the sale of forfeited property. Consequently, he still owes his victims approximately $100 million.

In 2018, prosecutors pursued legal action against Jordan for failing to allocate any of the roughly $9 million he earned in speaking fees between 2013 and 2015 towards his restitution obligations.

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Origin of “Wolf of Wall Street” Alias

Jordan Belfort gained prominence through the 2013 film “The Wolf of Wall Street,” loosely adapted from his 2007 memoir of the same title.

Despite widespread use of the nickname in media coverage, interviews, and articles, it is important to clarify that Jordan was not commonly referred to as “the wolf of Wall Street” during his financial activities.

So, how did he acquire this moniker?

Jordan himself coined the nickname while penning his memoir during his incarceration.

The Martin Scorsese film, funded with misappropriated Malaysian government funds, wrongly portrays Jordan Belfort’s nickname’s origin.

Contrary to the movie, a Forbes writer didn’t give him the nickname in a 1991 cover story.

The titled article, “Steaks, Stocks – What’s the Difference?” mentioned Belfort’s steak-selling days before brokerage.

It described Belfort as a “twisted Robin Hood” who promoted risky stocks to investors.

Nowhere in the article is he referred to as “the wolf.”

Key Details:

  • Purchased a white Ferrari with his initial Wall Street bonus.
  • Experienced the sinking of a 167-foot yacht during a Mediterranean storm.
  • Incurred a hotel bill totaling $700,000 at one point.
  • Reportedly engaged in intimate relations with his wife on a bed covered with $3 million in cash.
  • Achieved earnings of $50 million within a single year at the pinnacle of his career.
  • Prosecutors later alleged that his financial schemes resulted in investor losses amounting to $200 million.
  • Mandated to repay $110 million in restitution.
  • Thus far, he has reimbursed $13 million of the restitution.
  • Charges between $30,000 and $70,000 for a solitary speaking engagement.

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Jordan Belfort’s Net Worth: Early Life

Jordan Ross Belfort was born on July 9, 1962, in The Bronx, New York, and grew up in Bayside, Queens, within a Jewish household.

During the summer between high school and college, Belfort and a close friend earned $20,000 by selling Italian ice from coolers to beachgoers.

He pursued a degree in biology at American University before briefly attending dental school at the University of Maryland School.

However, he abandoned his dental studies after the first day of classes when a faculty member asserted that dentistry was not a lucrative path.

Jordan Belfort’s Career

Belfort initially ventured into entrepreneurship by selling meat and seafood door-to-door on Long Island, New York.

His enterprise expanded from a solo endeavor to a company employing multiple individuals, selling 5,000 pounds of beef and fish weekly.

Following a bankruptcy filing at the age of 25, Belfort transitioned into the financial sector, commencing as a stockbroker trainee at L.F. Rothschild.

He purportedly received advice from his first boss advocating for masturbation, cocaine, and hiring prostitutes as keys to success.

After the 1987 Black Monday stock market crash, L.F. Rothschild laid him off.

Undeterred, Belfort determined to achieve the financial success of senior stockbrokers.

Throughout the late 1980s, he gained experience working for various financial firms, refining his sales techniques.

In 1989, he founded his own firm, Stratton Oakmont.

Belfort’s establishment of Stratton Oakmont in the early 1990s marked the onset of his fraudulent activities.

Operating within a boiler room setting, the firm engaged in pump-and-dump schemes, defrauding investors.

At its pinnacle, Stratton Oakmont employed over 1,000 stockbrokers and managed assets exceeding $1 billion.

However, scrutiny from regulatory bodies culminated in the expulsion of Stratton Oakmont from the National Association of Securities Dealers in December 1996, leading to the firm’s closure.

Belfort allegedly laundered his ill-gotten gains into Swiss banks with the assistance of his mother-in-law and wife’s aunt.

Amidst his tenure at Stratton Oakmont, he purportedly hosted extravagant parties featuring activities such as midget-tossing contests.

Jordan Belfort’s Net Worth: Motivational Speaking Career

Following his release from prison, Belfort embarked on a new career as a motivational speaker, establishing Global Motivation, Inc.

He traversed the country, delivering speeches on ethical business practices and learning from past mistakes, spending approximately three weeks per month on the road.

Despite his past transgressions, Belfort justified his actions by citing the prevalent rule-breaking culture in the 1990s financial industry.

Booking a speaking engagement with Belfort costs between $30,000 and $75,000, while sales seminars command fees starting at $80,000.

However, his speaking engagements have received mixed reviews, with criticism directed towards his glorification of past regulatory violations.

What is Jordan Belfort’s Net Worth?

Jordan Belfort, an American ex-stockbroker, convicted felon, and author, currently holds a net worth estimated at negative $100 million.

 

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