50. Stratton Oakmont
Year: 1989-1996
Approx. Amount: $13 billion*
Company / Person Involved: Jordan Belfort, Danny Porush
If you’ve ever seen The Wolf of Wall Street, then you know some of what happened with Stratton Oakmont, as that blockbuster film is partially based on the life of Jordan Belfort, one of the founders of the brokerage house. Stratton Oakmont defrauded almost all of its shareholders, leading to the conviction and incarceration of Belfort and his co-founder, Danny Porush.
Stratton Oakmont @Jordan Belfort – Wolf of Wall Street / Facebook.com
Stratton Oakmont’s main charge was that the firm participated in microcap stock fraud. They’d inflate the price of owned stock through false statements so that they could sell it at a higher cost. After the overvalued shares were dumped, investors lost their money.