From Wikipedia, the free encyclopedia - View original article
|This article needs additional citations for verification. (January 2011)|
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. 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".
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 and Jonah Hill plays fictional character Donnie Azoff, who is based on Danny Porush.
|This bank, insurance, or other financial services corporation article is a stub. You can help Wikipedia by expanding it.|