How much is Jordan Belfort worth?
NET WORTH: | $2 MILLION |
---|---|
Profession: | Professional Author |
Date of Birth: | July 9, 1962 (age 58) |
Country: | United States of America |
Height: | 5 ft 7 in (1.7 m) |
About Jordan Belfort
Jordan Belfort is a former stock broker and current motivational speaker who was famously convicted for fraud and money laundering after a major FBI investigation was conducted on him and his brokerage house, Stratton Oakmont. Though his name is recognizable, people often think of Leonardo DiCaprio when Belfort’s name is mentioned as DiCaprio famously played Jordan Belfort in the hit Scorsese movie “The Wolf of Wall Street”.
As of 2021, we estimate Jordan Belfort has a net worth of just $2 million dollars. The former stockbroker and convicted felon earns money through his books, courses and speeches, but is it enough to pay back the some $100 million he still owes?
Here’s how Jordan Belfort earned his incredible net worth in the 1990s, got smashed in the 2000s and then parlayed his story into a profitable brand in the 2010s.
How did Jordan Belfort originally get rich?
Jordan Belfort started making money young and from the words in his book he was always a fantastic salesman. Belfort starting out selling meat and fish door-to-door, yet it wasn’t until he started selling stocks that he became incredibly rich and successful.
Belfort went deep into the business of selling penny stocks; the often near-worthless “pink sheet” shares of companies outside the regulated Nasdaq and NYSE. By 1991, he had made such a splash in the scene that Forbes did a profile on him, title: “Steaks, Stocks — What’s The Difference?”
From what we can gather, his firm Stratton Oakmont would sell stocks that were not good enough to get listed on the big stock exchanges. Instead using information and prices directly off the company documents and then adding an additional 50% to the price of the shares for “services”, these stocks were pushed via cold calls. Based on what was in the movie, these added services that made up half of the purchase price, usually only cost the buyer 1%. For example if they bought a blue chip stock sold by a reputable firm, they would be charged 1% service fee. Belfort would push essentially worthless stock and then seemingly make it impossible for his customers to make any money, because he would add a 50% fee to the price.
What’s worse, it seems Belfort would pump and dump the stock market. He would have his brokers inflate stock prices, while secretly owning major holdings in the company being sold, then at the ideal time he would sell his shares and book a great profit. Leaving his customers to bare the brunt of the losses. Often losing everything as the company returns to trading at virtually zero.
In the movie, the method he used to scam people was by cold calling and pitching a good quality blue chip stock like IBM or Intel, something that may return a small profit. Acting like a reputable firm, only taking a small commission and hopefully making the buyer a small amount of money. Then once he won their trust he would sell them shares in a penny stock company with high pressure sales tactics and claims of big profits if they act immediately. Not only were the companies often terrible losers, the additional 50% commission for the sale of the stock were added this time. This could made it impossible for his clients to make money from the trade, essentially guaranteeing a loss.
It seems Belfort used these tactics as well as others, possibly insider-trading, to build his firm to hundreds of employees and earning hundreds of millions along the way. This is how Jordan Belfort started living a luxury lifestyle with a net worth of about $200 million in the 1990s.
That was taken away from him of course when he was charged with securities fraud and money laundering and sentenced to two years in prison. Belfort still gained a moderate amount of success and wealth after being released from jail, yet has never reached the heights he achieved in the 1990s through his fraud. The autobiography detailing his escapades with drugs and women in the ten years he made so much money became a New York Times Bestseller. Though the book only gives surface level details and rarely goes in to what happened between him, his company and the FBI. Mostly just indulging in what many consider are wild fairy-tales of sex on planes, yachts, and cars…
It worked.
Not only did Belfort sell the rights to his book, but movie studios entered an outright bidding war and fought for the rights. Warner Bros and Leonardo DiCaprio (who has a net worth of $270 million), eventually won against Paramount Pictures and Brad Pitt (who has a net worth of $300 million). Belfort sold the rights for over $1 million, but he also earned a $250,000 bonus when the movie was shot and released into theaters. Besides the movie, The Wolf of Wall Street was also adapted into an immersive experience in London; and while it’s clear he wasn’t earning the hundreds of millions like he had done in the past. It is clear Jordan Belfort began experiencing a second phase of success.
Why has Belfort become so famous?
Jordan Belfort became well known around New York and among business socialites for the success he was making on Wall Street. It seems to us however that the base of this success came through illegal activities; but at the time nobody knew that, and everybody in New York wanted to work for him. He became famous for making so much money, buying audacious cars and houses, but also allegedly sleeping with dozens, maybe even hundreds of prostitutes. He admits to taking different types of drugs and winding up having all kinds of experiences, as he explains in an almost self-congratulating way in his book, The Wolf of Wall Street. And his antics displayed even clearer in the movie.