Stratton Oakmont

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Logo of Stratton Oakmont Inc.

Stratton Oakmont, Inc. was a Long Island, New York, "over-the-counter" brokerage house founded by Jordan Belfort and Kenny Greene, and later bought by Danny Porush. Stratton Oakmont was the largest OTC firm in the country during the late 1980s and 1990s. The firm was responsible for the initial public offering of 35 companies, including Steve Madden Ltd., Hemesphere Biopharma, Dualstar Technologies, D.V.I. Financial, Paramount Financial, M. H Meyerson & Co., Czech Industries, M.V.S.I. Technology, Questron Technologies, and Etel Communications. Stratton Oakmont did not have a Product control function to price verify positions and monitor trading activity.

Alabama Securities Commissioner Joseph Borg pushed the formation of a multi-state task force which eventually led to the prosecution of Jordan Belfort after his office was inundated with complaints regarding the brokerage.[1] Stratton Oakmont participated in pump and dump schemes, a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump and dump schemes are sometimes called "chop stocks".[2]

In 1995, the firm sued Prodigy Services Co. for libel in a New York court, in a case that had wide legal implications.[3]

The firm was shut down in 1998, and Belfort was indicted for securities fraud and money laundering.[4]

The 2013 movie, The Wolf of Wall Street is a biographical drama about Jordan Belfort and the investigation into the firm, directed by Martin Scorsese. Leonardo DiCaprio stars as Jordan Belfort[1] and Jonah Hill plays fictional character Donnie Azoff,[5] who is based on Danny Porush.

See also[edit]


  1. ^ a b Hubbard, Russell (21 March 2010). "Joe Borg, Alabama Securities Commission boss, has reputation of being tough on crooks". The Birmingham News. Retrieved 25 January 2011. 
  2. ^ "Pump and Dump Schemes". U.S. Securities and Exchange Commission. March 12, 2001. 
  3. ^ Stratton Oakmont, Inc. v. Prodigy Services Co., No. 31063/94, 1995 WL 323710, 1995 N.Y. Misc. LEXIS 229 (N.Y. Sup. Ct. 1995).
  4. ^ Stefania Bianchi; Mahmoud Habboush (19 May 2014). "Wolf of Wall Street Belfort Is Aiming for $100 Million Pay". Bloomberg. Retrieved 21 May 2014. 
  5. ^ Sacks, Ethan (June 17, 2013). "'The Wolf of Wall Street' Trailer Released Shows Leonardo DiCaprio at Debaucherous Best". Daily News, LP. Retrieved June 19, 2013.