Besides, his mentors were cunning teachers. Belfort then pounced, selling the stock stashed in the ratholes to produce most of his profit.īelfort thought he was too clever to get caught by what he describes as bumbling investigators with the U.S. Then he used the power of his boiler room operation at Stratton Oakmont to drive up the price of Madden's stock to around $20 a share. A big chunk of the shares of the offering went into what Belfort describes as ratholes, or accounts held by his cronies at $5 or $6 a share. In the initial public offering of shoe company Steven Madden Ltd., Belfort pocketed some $20 million. Instead, he paid his rowdy salesmen handsomely to pump up the prices of small stocks with fraudulent pitches. He said he could have made even more if he had run the Long Island brokerage legitimately. In his twenties, Belfort made millions of dollars a year taking companies public. Half of Belfort's monthly income goes toward restitution and US District Judge John Gleeson has ordered Belfort to file an affidavit with the court detailing the financial arrangements surrounding the book and a movie deal.
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