16Wolf defanged
Judge puts bite on Wall St. slime Belfort
A Brooklyn Federal Court judge closed a potential legal loophole on “Wolf of Wall Street” Jordan Belfort before the penny stock scammer could slip through.
Belfort, who still owes nearly $100 million in restitution to his 1,513 victims, must surrender all of his earnings from a Manhattan real estate business to the government, Judge Ann Donnelly ruled in an eightpage decision last week.
Donnelly rejected Belfort's assertion that money collected from his business relationship with Delos Living was exempt from his May 1999 plea agreement under the Consumer Credit Protection Act — a law capping the government's garnishment amount in certain cases at 25%.
“A review . . . of the relevant case law leads me to conclude that (Belfort's) interests are not what Congress had in mind,” wrote Donnelly. “Nothing about the defendant's arrangement with Delos Living is consistent with (Congress') goal . . . . The defendant's claim of exemption is denied.”
The Consumer Credit Protection Act was intended to protect “honest debtors” who sought to avoid bankruptcy and pay their bills while making restitution, the judge noted. And her decision prominently mentioned that boiler room boss Belfort has repaid only $12.8 million of the $110.3 million owed to those duped by his scheme.
The government can now seize all referral fees and any other compensation paid by Delos Living under a November 2014 deal with Belfort.
Belfort, 56, was portrayed by actor Leonardo DiCaprio in director Martin Scorsese's “The Wolf of Wall Street,” the Oscar-winner's examination of evil and excess in the financial industry.
DiCaprio is listed as an advisory board member at Delos Living, a Manhattanbased business offering “Wellness Real Estate” with work spaces “that nurture and promote human health and well-being,” according to its website.
The company entered into an agreement with Belfort in November 2014, with the notorious stock schemer signing on via a newly created company dubbed JB Global Holdings.
In a previous court filing, Belfort said that Delos terminated their relationship in December 2017 after the government started its legal action for garnishing his income.