The Wolf on Wall Street..this is how he did it

by popstocks Banned
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This is how he did it.


1) Owned his owner stock brokerage firm


2) Listed shell companies on the I.P.O.market under friends names.


3) Friend sell shares for say $4 to broker firm


4) They then had sell those shares to rich clients


5) Target price of say $12 offload what is left


6) Client tries to sell....hard sell them not to. Don't want the price to crash too quickly and have the SEC sniffing around.


7)Prop up the price for a couple of months..then let it collapse blaming it on the "market."


8) Next one.


Often making $5m - $15m+ per I.P.O. listing




Clever but silly to think he could go so big and for so long without getting caught out. That is dumb. Still he was a sohpistiacted "thief."


wouldn't work today before you try to copy it....:-(
  • Profile picture of the author sbucciarel
    Banned
    Pump and dump
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    • Profile picture of the author whateverpedia
      Originally Posted by sbucciarel View Post

      Pump and dump
      Say you want to get rid of your holding in ZYX.

      Step 1
      Obtain a LARGE database of potential investors.

      Step 2
      Send out a direct mail campaign to half of these names saying that stock WVU is going to rise. The other half gets a letter saying that WVU is going to fall.

      Step 3
      Whatever way the stock goes, delete the names of the half which received the wrong result, ie if the price goes up, delete the names that received the "price to go down" info.

      Step 4
      Repeat Step 2 on stock TSR.

      Step 5
      Repeat Step 3 for TSR.

      Step 6
      Repeat Step 2 for stock QPO.

      Step 7
      Repeat Step 3 for QPO.

      Step 8
      Repeat Step 2 for NML.

      Step 9
      Repeat Step 3 for NML.

      By this time, you'll have a list of "clients" who think you're a pretty damn good stock picker, so.....

      Step 10
      Send out letter saying that XYZ is going to rise to ALL the names you have left.

      Step 11
      Unload your holding of XYZ and trouser the megabucks you rake in as the sudden interest in XYZ causes the price to go through the roof.

      Step 12
      Quickly move to a country with no extradition treaty with the country in which you carried out your scheme/scam and take out citizenship there. (Shouldn't be a problem as you're fabulously wealthy, remember?).

      Step 13
      Live happily ever after(?) on your ill-gotten gains and hope that none of the people you scammed are from the Soprano (or Corleone if you like) family.
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  • Profile picture of the author popstocks
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    pump and dump is carried out on stocks you simply buy into.
    he did far more and better than that.

    Owned his own brokerage house so all trades had to come through his firm..clever. He could stop them selling too fast

    Listed the companies him-self through I.P.O. got friends to sell the shares to him first.

    It's almost as if you didn't even read my post before remarking. He didn't do anything you said whateerpedia....you have decibed a typical pump and pump not what he did. Do you have experience of thi kind of operation or going of "heresay"? what you described would not work too well.

    It was a lot more elborate than your typical pump and dump. it was way ahead of its time.

    The movie "THe Boiler Room" is also based off this guys operation.
    Still, greed got him in the end.
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    • Profile picture of the author whateverpedia
      Originally Posted by popstocks View Post

      It's almost as if you didn't even read my post before remarking. He didn't do anything you said whateerpedia....you have decibed a typical pump and pump not what he did.
      I was actually responding to Suzanne's post, not yours.

      And yes, I am aware of what the WOWStreet did. I've just been reading a long article in The Australian Financial Review (dead tree edition) about this chap and the movie they've made about him.
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    • Profile picture of the author sbucciarel
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      Originally Posted by popstocks View Post

      pump and dump is carried out on stocks you simply buy into.
      he did far more and better than that.
      Just citing what I've read about the man and I've read numerous articles on him.

      While the debauchery depicted in the film is true, plenty of the Belfort story is myth. His supposed links to the mafia have never been proven and Stratton Oakmont - a name chosen as it k sounded British and reputable - was never a Wall Street firm: the Wolf of Wall Street operated from a shopping mall in suburban Long Island.

      Stratton Oakmont was a so-called "boiler room"; ostensibly a call center where young workers rang investors and random names from the telephone directory, pushing them to buy shares in companies it financed and floated on the stock exchange (in a process called Initial Public Offerings or IPOs). Stratton Oakmont practiced a technique called "pump and dump": investors were first hooked with the promise of shares in stable companies and then persuaded to invest in Stratton's IPOs. The greater the number of people who invested, the higher the share prices rose. Illegally, Belfort and a group of insiders he tipped off also bought shares in these businesses. When the prices peaked, Belfort tipped off his cohorts to sell. They all made fortunes while the share prices plummeted, leaving everyone else with worthless stocks.
      Belfort and his partner owned shares of a risky stock and had their brokers at Stratton Oakmont brokerage aggressively sell the stock to inflate the price. They then sold the stock themselves to turn a profit.
      Ruling: Fact

      Belfort and Danny Porush (called Donnie Azoff in the film and portrayed by Jonah Hill) utilized this age-old pump-and-dump scheme to get rich quick after graduating from scamming middle-class people into buying worthless penny stocks at a 50 percent commission.

      http://entertainment.time.com/2013/1...et-true-story/
      The movie is based on the boiler-room-fueled pump-and-dump adventures of Jordan Belfort and his brokerage firm Stratton Oakmont. The real-life Belfort, as detailed in his two autobiographical books, urged his army of inside sales reps to incessantly pound the phones as they duped investors into buying stocks Stratton Oakmont held a position in. When the price rose, the company would sell its holding at a huge profit, leaving unsuspecting customers with worthless paper and egg on their faces.

      http://www.forbes.com/sites/forbesle...eet-all-wrong/
      Belfort hired young, hungry brokers. Some hadn't even graduated from high school. All they had to do was swear loyalty to him, read his scripts over the phone while cold calling, and everyone would get rich. It was a classic pump and dump scheme where brokers would drive up the price of stocks, and then Belfort would dump the large chunks he and his partners controlled, cashing out. Then the stock prices would collapse.

      http://www.cnbc.com/id/21114268
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  • Profile picture of the author popstocks
    Banned
    i buy a stock....the spend all day telling peole to buy it. Heck even hiring peole to pump it....it's small time.

    i operate a brokerage house, hire many cold callers, list companies on the market..make $50m+ per annum... different story.

    Yes he pump and fump but on a huge scale.

    Still, he is a crook and seems to have come out smelling of roses.
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  • Profile picture of the author J50
    Happens all day long. Buy business/consumer data, hand it to a call centre whom will sell something like wine investments. You get all your noobs trying to close run of the mill sh*t leads, then hot leads who might of spent £2,000 with you before, you hand over to your best closers and push them up to £20,000.

    You can take illegal business models and turn them legal, so long as you work within rules and regs and not just selling dog sh*t.
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    • Profile picture of the author socialentry
      Originally Posted by J50 View Post

      Happens all day long. Buy business/consumer data, hand it to a call centre whom will sell something like wine investments. You get all your noobs trying to close run of the mill sh*t leads, then hot leads who might of spent £2,000 with you before, you hand over to your best closers and push them up to £20,000.

      You can take illegal business models and turn them legal, so long as you work within rules and regs and not just selling dog sh*t.
      I know that in London, old school telemarketing is still in vogue but
      How come this method of marketing seems to be so prevalent in the UK?

      Here in Canada, the only brokerages that sell directly over the phone are the investment divisions of the big 5 banks.
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  • Profile picture of the author popstocks
    Banned
    cold calling invetments is illegal in the UK... I'll gurantee everyone one of those companies selling carbon credits, land, wine, diamonds, etc.. (all altrnative investments bye the way) are scams.

    Bottom line treat all cold calls as theft.
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    • Profile picture of the author socialentry
      Originally Posted by popstocks View Post

      cold calling invetments is illegal in the UK... I'll gurantee everyone one of those companies selling carbon credits, land, wine, diamonds, etc.. (all altrnative investments bye the way) are scams.

      Bottom line treat all cold calls as theft.
      Ah I see I thought he was talking about real securities for a moment.
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  • Profile picture of the author laurencewins
    "The Boiler Room" is a classic film and teaches some "interesting lessons."
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    • Profile picture of the author popstocks
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      Originally Posted by laurencewins View Post

      "The Boiler Room" is a classic film and teaches some "interesting lessons."
      Good or bad?
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  • Profile picture of the author David Braybrooke
    Is it 'on' or 'of'. Gettin' confused here with my moonshine ..
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  • Profile picture of the author whateverpedia
    Originally Posted by prosperus View Post

    I belong to a rapidly growing company that will probably destroy carbon credits and half the green movement with it ..It will be interesting to see the companies who would be more than willing to throw a spanner in the works at every opportunity to ensure their own survival.
    If the "rapidly growing company" you're referring to is the one in your sig file, it looks to me at first glance to have all the hallmarks of a pyramid scheme.

    I predict that the "green" movement (or any other colour you care to mention) will outlast you by years/decades/centuries/eons.
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    Why do garden gnomes smell so bad?
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  • Profile picture of the author popstocks
    Banned
    He says he would have been worth $20 billion if he'd stayed legal. |I find this hard to believe.

    He wasn't some great fund manager or stock picker etc..just a fraud seller of B*S*

    He also claims 95%+ of what he did was legal....i'd like t know what this was and if it was true.

    I am having a hard time believing anything this guy says
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