My op-ed, published today in The New York Times, talks about the increasing vulnerability of small investors 10 years after the financial crisis. You can read it here.
The list of investors who got fleeced by convicted felon Jordan Belfort, aka “The Wolf of Wall Street,” would be gold in the hands of financial crooks, and that’s why a federal judge in Brooklyn told the producers of “Inside Edition” in June that he wouldn’t hand it over to them.
“It’s pretty well known in the fraud world that the best list to get is the list of people who have already been taken,” Doug Shadel, an expert on fraud schemes and the elderly at AARP, told me in an interview.
In my story for The New York Times DealBook last month, I looked at the ways that financial criminals find and fleece their victims. You can read the story here.
The depiction of stock brokers in that “Wolf of Wall Street” movie has the securities industry on the defensive. In my column today for Investopedia.com, I talk about how a faction that considers itself the “real” Wall Street is anxious to get the word out that it has no similarity to the thugs who appear in the movie with Leonardo DiCaprio.
Ask a pal at a Wall Street firm about the box-office hit The Wolf of Wall Street, and brace for one of those sour faces that suggests there’s a bad smell in the room. Those sex-obsessed, drug-taking thugs who ripped off investors in Martin Scorsese’s all-time, biggest-grossing film have nothing in common with the refined investment professionals who do business on real Wall Street, they will tell you.
But that’s not entirely true. The Wall Streeters who wear expensive suits and do business in Manhattan may not be tossing midgets around the trading room, as the perhaps less genteel Long Island brokers in the movie did. They aren’t above hurting investors, though.
“If people understood the similarities between Belfort and Wall Street, there would be a riot in this country,” says Dennis Kelleher, CEO of the investor advocacy group Better Markets Inc. Kelleher explains, for example, that Belfort’s operation dealt in barely-regulated penny stocks that came with either skimpy information or documents that twisted or obfuscated the facts. On conventional Wall Street, says Kelleher, firms bask in the convenience of the opaque, too, trading the kinds of over-the-counter derivatives that helped crash the economy in 2008.