Claims that “Wolf of Wall Street” Jordan Belfort is falling short on repayments to his victims are growing louder as the movie starring Leonardo DiCaprio roars to further success.
Officials at the US Attorney’s office in Brooklyn, which handled Belfort’s case in which he pleaded guilty in 1999 to bilking investors out of more than $200 million in a vast pump-and-dump scheme, believe Belfort has earned more than $1 million in recent years from book sales and motivational speeches and videos. But his victims have seen only a small portion of that money.
Belfort was ordered to pay $110.4 million in restitution to victims, by handing over 50 percent of his gross income. He has so far paid only $11.6 million. Robert Nardoza, a spokesman for the US Attorney for the Eastern District, said prosecutors had filed a motion placing Belfort in default, and they were negotiating with his lawyers about a repayment deal.
According to court papers, Belfort got nearly $1 million for the movie rights for “The Wolf of Wall Street” in 2011, but only paid $21,000 in restitution that year. Since then Belfort, who lives in an oceanfront home in Manhattan Beach, Calif., is making a living doing speeches and selling motivational videos for $2,000.
While Belfort denies he is hiding money from the government, financial experts aren’t so sure. Stock trader Timothy Sykes, a millionaire penny stock expert, tells us, “I estimate he has made around $4 million in the last year. I want to see an aggressive investigation into this guy’s earnings. He has a new life, living at the beach in California, flying first-class to Australia . . . But his victims are still hurting. I believe he is going around the world earning millions and not giving any of it to his victims.”
Belfort’s lawyer Nicholas De Feis said, “He continues to make regular payments toward restitution and these payments have increased as his circumstances have changed . . . It has always been and remains Mr. Belfort’s position . . . that [his former brokerage firm] Stratton victims should receive all of the proceeds that Belfort would be entitled to based on the success of the ‘Wolf’ picture and ongoing book sales.” Responding to Sykes, “I do not think he knows Belfort, has been involved in our discussions or has any basis for an opinion.”