Stratton Oakmont controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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1999
Securities-fraud and money-laundering prosecution
Jordan Belfort and Danny Porush were indicted and later pleaded guilty. They admitted to a multiyear scheme involving manipulation of the stock of at least 34 companies.
1996
NASD disciplinary proceedings and expulsion
After years of scrutiny, an NASD district committee imposed a one-year restriction on principal retail transactions, followed by expulsion from the NASD in December. The action ended the firm's brokerage operations.
1990
Microcap stock manipulation and pump-and-dump activity
Stratton Oakmont was associated with schemes in which low-priced stocks were promoted through false or misleading positive statements, sold at inflated prices, and then left investors exposed when prices fell. The firm was also reported to have refused or delayed certain sell orders.