Jordan Belfort Case Study

In this essay, the author

• Analyzes how jordan belfort, the self-titled "wolf of wall street", convinced investors to buy inferior stocks with the belief that they were going to make a fortune.
• Explains jordan belfort's exploitation of individuals and the financial system was for financial gain. rational choice theory dictates that individuals are of rational minds and will calculate the costs and benefits and choose actions where the benefits outweigh the punishment for committing it.
• Explains that rational choice theory, developed by ronald clarke and derek cornish in 1985, is an evolution of cesare beccaria's classical theory.

• Analyzes how jordan belfort, the self-titled "wolf of wall street", convinced investors to buy inferior stocks with the belief that they were going to make a fortune.
• Explains jordan belfort's exploitation of individuals and the financial system was for financial gain. rational choice theory dictates that individuals are of rational minds and will calculate the costs and benefits and choose actions where the benefits outweigh the punishment for committing it.
• Explains that rational choice theory, developed by ronald clarke and derek cornish in 1985, is an evolution of cesare beccaria's classical theory.
• Explains jordan belfort's pattern of greed for money without regard to the law was visible. at age 17, he began selling italian ice and other assorted goods to beachgoers at howard beach in queens.
• Narrates how belfort pursued a dental career at baltimore college of dental surgery, believing it would lead to wealth. the dean of the college stated that the "golden age of dentistry is over."
• Analyzes how jordan belfort's drive for monetary attainment persisted with no discernible income. he started a meat and seafood business called "great american meat and seafood" that sold door-to-door and made money on commissions.
• Explains that belfort acquired a job with the brokerage firm l.f. rothschild in may of 1987, in hopes of making money. however, the stock market crashed in october 1987 causing the company to terminate many employees.
• Analyzes how jean-louis van gelder created a varying perspective of rational choice theory in association with other disciplines to strengthen the understanding of variables that influence the decision-making process an individual undergoes.
• Analyzes jordan belfort's cognitive calculating choices throughout his life, where he analyzed, planned, and carried out actions despite their legal nature.
• Describes how belfort began working for a brokerage firm called investor's center, which sold penny stocks over the phone utilizing "pump-and-dump" schemes and "boiler room" sales tactics.
• Explains stratton oakmont's concept in 1990 was based around the same type of microcap fraud utilized by investor’s center, which sold the stocks of small public companies with low capitals between 50 million to 250 million.
• Analyzes how paternoster & simpson analyzed rational choice theory in a corporate setting and the moral climate of the organization.
• Narrates how belfort came under the eye of the securities exchange commission in 1991, who sued stratton oakmont to force it out of business for being a penny stock firm.
• Explains that piquero, exum & simspson (2005) researched the effect of the individual trait of a desire for control using the rational choice framework in terms of corporate crime.
• Analyzes how the failure of the securities exchange commission to sue belfort combined with the moral climate where stratton oakmont employees embraced a deviant lifestyle, shows that informal sanctions against jordan were next to non-existent.
• Explains that belfort's downfall was due to his extensive international money laundering ring to hide his profits, recruiting people to transport cash on their persons to switzerland to deposit in an account under his wife’s aunt
• Explains that guerrete, stenius & mcgloin's research builds off the rational choice theory framework of a costs/benefits calculus created by cornish and clarke.
• Explains that researchers created a theory with three hypotheses as to why versatility and specialization occur. the study used national level recidivism data with probationers from 1986.
• Explains that unlike previous rational choice perspective studies, this study included demographic variables such as race, age, employment, education, and marital status to help lend context to why an offender may choose to commit an offense and what type.
• Analyzes jordan belfort's specialization in monetary offences, but he does fall within the group who were not re-arrested, who showed higher levels of education.
• Argues that belfort's pursuance of monetary wealth ended after his prison sentence. with the conviction rates for corporate crime only a fraction of that of street crime, it would seem viable for him to re-brand himself and start all over again.
• Analyzes maurice cusson's analysis of delayed deterrence in a rational choice theory context, in which offenders simply give up crime after time.
• Analyzes how jordan belfort broke the law over a long period of numerous years, and expressed regret at not being able to care for his children during his sentence.
• Analyzes how jordan belfort subverted the law for his own financial gain. he constructed an environment with stratton oakmont to enable this behaviour, as well as corrupt those around him.