Jordan Belfort, the "Wolf of Wall Street," isn’t just a con, but also a deadbeat, prosecutors say, and they want him to pay up.
For those who’ve forgotten, Belfort operated a penny-stock boiler room on New York’s Long Island called Stratton Oakmont Inc. His brash behavior was glorified on screen by Leonardo DiCaprio in the movie based on Belfort’s memoir. The 2013 film made about US$100 million and helped start Belfort’s second career as a motivational speaker.
At his sentencing in 2003, Belfort was ordered to pay US$110.4 million in restitution and other penalties, but the government says he still owes about $97 million. U.S. District Judge Ann Donnelly in Brooklyn, New York scheduled a hearing Wednesday on the matter.
The argument is likely to focus on technical legal and accounting issues. Prosecutors say in court papers that Belfort paid about US$700,000 to victims between 2007 to 2009, and nothing in 2010; he has also paid US$12.8 million, mainly from property he relinquished at sentencing, they say. Belfort and his lawyer, Sharon Cohen Levin, dispute the government’s numbers and what he should pay.
Anyone who hopes Belfort will make a cameo appearance -- at the same courthouse where he was sentenced -- will be disappointed. He is scheduled to be in Lithuania giving a motivational speech.
Belfort was released from prison in April 2008. He was convicted of defrauding 1,513 investors out of more than US$200 million and sentenced to four years behind bars. He was also ordered to pay 50 per cent of his gross income to victims after he was freed.
When government lawyers learned of the deal to publish Belfort’s memoir in April 2007, they filed restraining orders against Bantam Books, Warner Brothers and Appian Way, a film production company founded by DiCaprio.
Belfort eventually agreed to pay 50 per cent of his earnings from the movie to the U.S., but another dispute recently erupted over Belfort’s income as a motivational speaker and other dealings.
Prosecutors say Belfort earned at least US$9 million in speaking engagements between 2013 and 2015 but pocketed it all. He has also collected other income from a building-design business, they claim.
In 2014, during a global speaking tour, Belfort said he hoped to earn “north of US$100 million" by giving speeches about his "redemption," which would allow him to repay victims.
“Once everyone is paid back, believe me I will feel a lot better,” he said at the time. “My goal is to give more than I get, that’s a sustainable form of success.”