Danny Porush is a former American stock broker probably best known for his “pump and dump” brokerage fraud scheme which he ran in the 1990s. Porush worked alongside Jordan Belfort, who was featured as the main protagonist in the movie “The Wolf of Wall Street”, which depicts the excesses and illegal activities of the firm. The movie gave their names public recognition, while in part glamourizing their illegally gained wealth and over-the-top lifestyle. Today, Porush is involved with “Boca Raton”, a medical supply company based in Florida, which ran under different names, such as “Med-Care Diabetic and Medical Supplies”, and “The Christian Healthcare Network”. “Med-Care” faced some controversy in recent years regarding fraudulent claims.
How Danny Porush became wealthy
Danny Prush was born in 1957, in Lawrence, New York State, into a Jewish family. He finished Lawrence Woodmere Academy and went on to attend Dickinson College and Boston University, but in the end he failed to graduate. After Porush dropped out of university, he did a wide variety of jobs, and started multiple small businesses.
It was in the late 1980s that Porush and Belfort founded Stratton Oakmont, an “over-the-counter” brokerage house in Long Island, New York – Danny had the position of president while Jordan Belfort was chairman. The company was built around selling “penny stocks”, inexpensive shares of public companies, and conducting initial public offerings on behalf of small businesses. Porush and Belfort made large amounts of money with the “pump and dump” scheme they ran through Stratton Oakmont. It involved artificially increasing stock prices by giving out fake and misleading information, in an attempt to sell their cheaply purchased stocks at a much higher price. In the process, the original investors would lose large sums of money.
However, their business operation did not go unnoticed for long. Stratton Oakmont soon found itself on the receiving end of various disciplinary measures enacted by the National Association of Securities Dealers (NASD) as well as Securities and Exchange Commission (SEC). In December of 1996, Stratton Oakmont was permanently removed by the NASD, with Porush being barred and fined $250,000. Porush fought back, claiming that his involvement was merely that of “a figurehead”, but his claim was rejected as it was determined that he was a salesperson who individually earned the most money. The NASD went on to report that Porush and Steven P. Sanders, his head trader, exhibited no remorse and accountability for their wrong-doings, and would remain a risk for people looking to invest.
In 1999, both Belfort and Porush pleaded guilty to charges of money laundering and securities fraud. They chose to co-operate with the investigations into their colleagues’ involvement, which granted them a shortened sentence. Porush was given a sentence of four years in prison compared to Belfort’s two, and ordered to pay a restitution which amounted to 200 million dollars. Danny Porush was granted probation, in 2004, after serving 39 months of his sentence.
After Porush and Belfort were released from prison, in 2007, Belfort wrote a memoir on the story behind Stratton Oakmont, which was later adapted by Martin Scorsese into the movie entitled “The Wolf of Wall Street”. However, Porush claims that the book and movie are close relatives of the truth of what actually happened. Porush’s character is not featured in the movie, but a character named Donnie Azoff, played by Jonah Hill, is to an extent based on Porush. The character was given a new name while the movie was still in development, as Porush didn’t wish to be depicted in the movie, and threatened to sue Paramount Pictures. The renaming of the character gave director Martin Scorsese the creative freedom to shape the story, and make it more commercially attractive.
After his release from prison, he soon linked with Med-Care, a medical organization based in Florida. In April of 2013, Med-Care was subject to a congressional hearing in regards to Medicare fraud. Porush’s involvement with Med-Care later led to the creation of the federal “Stop Scams Act” of 2014, resulting in Medicare providers being obligated to reveal their ownership interests.
That same year, Porush and five more employees of Med-Care faced whistleblower accusations regarding fake Medicare claims. Despite the case being initially dismissed due to lack of evidence, it was later refiled after two more employees of Med-Care joined the initial whistleblower and alleged that the company was defrauding the government. It was alleged in the lawsuit that numerous telemarketers, guided by Porush, called citizens and using various sales tactics, persuaded them to purchase medical supplies which they may not have needed or wanted. This led to Med-Care offices being raided by the FBI and local police in 2015, and company files were removed in the process.
Belfort unhappy with Porush’s restitutions
In recent years, Jordan Belfort expressed his frustration with Porush, who he claimed isn’t doing enough to pay off their restitutions. Of the original $200 million Porush was ordered to pay, he paid back $11 million, claiming that he’d paid his debt to society. Belfort himself also hasn’t paid back the full sum of his restitutions, which amounts to $110 million. In 2018, it was reported that Belfort was still to pay $97 million, but claims he does his best to pay what he owes, unlike Porush. Still, it remains unclear how much of their restitution was paid as of 2023.
Danny Porush wife and family
Porush’s first wife was his cousin, Nany, with whom he had three kids. The couple divorced after 14 years of marriage in 2000. Porush is now married to Lisa Krause, and they have one child together, with four step children from Lisa’s previous marriage. The couple live together in Boca Raton, Florida.
in 2006, Danny Porush was sued by his first spouse, Nancy, as he wasn’t paying child support for his children. At the hearing, Porush claimed that his wife, Lisa, owns everything and that he has no assets to his name. However, reports state that Danny and his wife Lisa, live a luxurious life in Florida. The couple reside in a $7.5 million condo in North Miami, Florida, and own a six-bedroom home in the community of Boca Raton, and get around in a Rolls Royce.
Danny Porush net worth
As of 2023, Danny Porush’s net worth has been estimated at around $10 million; most of his net worth is associated with the medical company, Med-Care.