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Global Events and Leadership

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Jordan Belfort, More Noise From Victims After Movie Launch
Audience and victims are becoming more curious and alert after the success of the movie “the wolf of wall street” by Leonardo Dicaprio , people all over the globe and myself are questioning , Belfort: Good or Bad ? Rich or Broke? hiding money or not and when will victims claim their money back. Some victims claimed that they have lost all their money savings, others said that the movie showed Belfort as a myth of which triggered them to ask for more actions to have their money and many claimed that these type of movies shouldn’t show these people as heroes instead they should have shown real victims and how they suffer rather than showing the partying, prostitution and drugs. The movie globally affected public opinion in terms of injustice towards such frauds.

1989, as a talented salesperson who graduated with a Biology degree decided to set up his own company Stratton Oakmont, building up on his learnings from working as a stock broker in LF Rothschild which was to be known prestigious at that time before falling in 1987. The ambitious Belfort taught his employees sales calls for penny stocks and lead this company to being a boiler room: a term used to describe high pressure sales environment. Employees followed him blindly and he gained their trust with his everyday speeches and high commissions. It was said that he had around 1,000 broker dealing with a $billion worth of trades. The pump and dump scheme he followed affected the stock market, customers were not satisfied and began to send complaints that made security and exchange commission start investigating the company’s practice. Belfort was known for alcohol and drug abuse, specially Quaaludes and cocaine , money laundry , crashing the 167 ft yacht which previously belonged to Coco Chanel and many other actions which were described vulgarly.

After Serving 22 months period, Belfort who is currently living in Los Angeles, California is running his own company which provides sales training and motivational speeches. Belfort was pledged guilty and forced to pay around 110.4 million $ to the 1,500 plus victims in addition to 50 % of any future earnings towards reinstitution, overall it has been said that he has paid around $11.6 million from the total amount due, prosecutors said he didn’t pay a penny in 2010. It appears that Belfort is still living the millionaire Luxurious life on the contrary, he said that he is not hiding any money from the government. Belfort and partners may have globally affected families, stock markets and justice believes, Prosecutors are still talking about his case until now.

It appears that Belfort have made over $2million from 2 book publications and from the sales of movie rights, furthermore the talented salesman is said to getting paid around $30,000 per hour for his teachings. Jordan is now considered a hot topic for different magazines and websites including Forbes where he appeared in different bogs. Belford is now being followed by around 30,700 people on twitter and is actively tweeting about different topics, updates for his personal and career life. In the 1990’s it was said that Belfort was to make around £600,000 weekly, “Interestingly Danny Porush his partner in Stratton Oakmont is now running a medical supply company, living in a $ 4 million mansion and driving a convertible Rolls-Royce” said J.S.(TheDailyBeast2013), the question is : an intelligent, talented , smart salesman , entrepreneur making that much money cannot pay back his victims?! In an interview with Piers Morgan on CNN “actions speak louder than words” said Belfort(2014), meaning that he will pay victims back but he will not talk much about it now. Belforts lawyers said that he has paid all his dues for reinstitution which increased prosecutors and publics’ frustration.

After the release of the movie “the wolf of wall street” in 25 December 2013, a loud noise has been heard all over news and social media about the original Jordan Belfort. Victims, viewers and even prosecutors all around the world are asking questions, everyone is becoming more interested in knowing the real Belfort and victims are in an anxious state after the movie success by Leonardo Dicaprio.

A talented charismatic leader who had a vision, Jordan Belfort was able to start his own company Stratton Oakmont with his partner Danny Porush as Belfort believed in himself, in his capabilities and knew there was a chance to be extremely rich fast. At almost age of 28, he was able to recruit friends, employees and transform them into minor Belforts, he was able to teach his team phone sales and provided them with schemes that they had to follow by heart. In few years according to Bernard Bass cited in Rickards,T. (2012.p82) he used “contingent rewards” style, his team knew their directions clearly, and he gave bonuses which reached $85,000 a year which made each broker eager to achieve what is required. Belfort was dynastic, he was in control of almost everything. Yet, he didn’t follow the full range leadership model, he was good at being “inspirational motivator” according to Bernard Bass cited in Rickards,T. (2012.p83) as he set very high expectations and targets for his followers who had no doubts of being well rewarded.

Is Belfort considered as a good leader? In my opinion, Belfort had a “fundamental dilemma” according to Ciulla cited in Rickards (2012.p188) between his morality ; being an ethical leader and leadership which was shown in his everyday behavior. Belfort also showed creativity to ensure speedy moving forward, which was clear when the deal was made with Steve Maiden the famous shoe designer, he may have shown “the incremental style forward incrementalism” Sternberg’s cited in Rickards,T.(2012.p221) where he knew very well where to direct his organization.

After couple of years of success, money flow, partying, celebrations, unsatisfied investors soon realized they are losing their money, security and exchange commission started investigating and following Belfort which he didn’t like. He had couple of dilemmas before deciding to cooperate with them to reduce his time, yet the leader didn’t give up from the first time. But when Belford was pledged guilty for money laundry, fraud, pump and dump and drug abuse, he affected more than 1,500 people in addition to manipulation of the stock market. After only serving 22 months, not repaying his dues and the glamorous success of the movie has lead to a global impact and questioning from audience and victims who believe that people like Belfort should have had aggressive statement, the movie and real life he is living now indicated clear injustice. Such DRM have made victims more frustrated as some claimed that they lost all their life savings.

In conclusion, there are quite few dilemmas in Belfort’s case, from victims and public questionings and from Belford himself in repaying dues. It is still not believed that such a talented man earning that much is not able to repay his money to the victims, he was shown in the movie as a myth and I believe it best describes it.

Referenecs:

news.com.au (2014) Wall Street wolf Jordan Belfort short-changes victims. Available at:

http://www.news.com.au/finance/business/wall-street-wolf-jordan-belfort-shortchanges-victims/story-fnda1bsz-1226823083306 (Accessed: 11 February 2014)

Vivian,G. (2014) “If You Think The Wolf of Wall Street Jordan Belfort Has Learned His Lesson, You’re Wrong”. Available at: http://www.policymic.com/articles/79895/if-you-think-the-wolf-of-wall-street-jordan-belfort-has-learned-his-lesson-you-re-wrong (Accessed: 26 January 2014)

Wikipedia (Avialble at: http://en.wikipedia.org/wiki/Jordan_Belfort)

Twitter (Available at: https://twitter.com/wolfofwallst)

Tom,L.(2008) “Jordan Belfort: Confessions of the wolf of wall street” , The Telegraph . Available at: http://www.telegraph.co.uk/news/features/3635727/Jordan-Belfort-Confessions-of-the-Wolf-of-Wall-Street.html [Online] (Accessed: 25 February 2008)

Brian,S. (2013) “Meet The Real 'Wolf Of Wall Street' In Forbes' Original Takedown Of Jordan Belfort”, Forbes. Available at:http://www.forbes.com/sites/briansolomon/2013/12/28/meet-the-real-wolf-of-wall-street-in-forbes-original-takedown-of-jordan-belfort/ (Accessed: 28 December 2013)

Jimmy,S.(2013) ‘The Real Wolf of Wall Street: Jordan Belfort’s Vulgar Memoirs’ , The Daily Beast. Avialable at: http://www.thedailybeast.com/articles/2013/12/20/the-real-wolf-of-wall-street-jordan-belfort-s-vulgar-memoirs.html#url=/articles/2013/12/20/the-real-wolf-of-wall-street-jordan-belfort-s-vulgar-memoirs.html (Accessed : 12 December 2013)

Kieran,C. (2013)” With film release approaching, ‘Wolves of Wall Street’ scammers are back on top”, NYpost, Available at: http://nypost.com/2013/04/15/with-film-release-approaching-wolves-of-wall-street-scammers-are-back-on-top/ (Accessed at: 15 April 2013)

Rebecca,B.(2014) “Jordan Belfort says The Wolf of Wall Street should be viewed as a cautionary tale” ,CNN.com , Avialable at: http://piersmorgan.blogs.cnn.com/2014/01/24/jordan-belfort-says-the-wolf-of-wall-street-should-be-viewed-as-a-cautionary-tale/?iref=obinsite (Accessed: 24 January 2014)

Rebecca,B.(2014) “Jordan Belfort on the victims he swindled: actions speak louder than words” CNN.com , Available at : http://piersmorgan.blogs.cnn.com/2014/01/24/jordan-belfort-on-the-victims-he-swindled-actions-speak-louder-than-words/ (Accessed: 24 January 2014)

Charles,L.(2014) “Prosecutors give poor reviews to Restitution from Wolf Of Wall Street” The Wall Street Journal. Available at: http://online.wsj.com/news/articles/SB10001424052702304347904579312560659290676 (Accessed: 14 January 2014)

Susan,A.(2013) “Investors’ Story Left Out of Wall St. ‘Wolf’ Movie” , NYTimes Available at: http://dealbook.nytimes.com/2013/12/19/investors-story-left-out-of-wall-st-wolf-movie/?_php=true&_type=blogs&_r=0 [Online] (Accessed: 19 December 2013)

Rickards,T. (2012) Dilemmas Of Leadership.2nd edition. USA : Routledge p.p. 82-83,188,221.

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