What Really Happened at Stratton Oakmont

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Dec. 23 (Bloomberg) –- Kirkland & Ellis Partner Jonathan Henes discusses his role in winding down Stratton Oakmont, the company founded by “the Wolf of Wall Street” Jordan Belfort. He speaks to Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

I want to thank you very much for being here.

We were just looking at the clips delivered from the movie and also from an interview.

Can you describe your role and what happens?

Cracks we came in after the sec shut down.

Harvey miller was brought in to be the trustee under the security investor protection act.

We represented him.

Our first job was to go in and secure the premises.

We went here.

We have a locksmith with us.

There were -- there was a huge trading floor.

Huge offices all around.

We went in and we took it over.

We got all the tapes.

You can hear what all of the brokers were doing.

Our job was to go sort through that mess.

Figure out what happened.

Figure out how specific this corporation could protect the customers and distribute whatever money we could find and get.

You met most of the people involved in this, didn't you?

I never met him.

This was all through deposition.

We met a lot of the young brokers.

That is how we really heard the story about what happened then.

It was very easy to see.

W what was it like to sit with these people?

It was amazing.

It is somewhat human nature.

You had these young kids, some 20 two or 23. they were promised riches.

We were told go sell the stocks and sell them anyway you can.

They would get on the phone with elderly people with their iras into you have to buy the stock today because bill gates or warren buffett is jumping in.

You want to get it before they do.

They were great salesman.

But they were lying.

They were completely lying.

When you would say did you know you're doing something wrong, the response was "i was driving a porsche, i had an apartment in the city, i was living the life.

I was not thinking about that." i think it was pure greed.

Pure greed.

You listen to the tapes.

Any surprises?

One were the stories they told to get people to sail and how hard they push.

They did push.

They took advantage of people's desire to become rich.

And all people, too.

They were changing the iras.

We would get claims that would come in from the customers that said they were defrauded.

We would say we told them to sell that stock or to stop buying that stock.

Will listen to the tapes in you when i hear it.

There were different memories of people would have the psychological damage they had.

When you sorted through the debacle of stratton oakmont, did you get anything about the regulators?

Was there any oversight?

The sec when they had problems, they liquidated in january 1997. the sec had been on them for a wild.

He knew the tapes were there.

This put them in place.

It was very amazing.

Knowing the conversations were taped, they still do not stop.

They did it anyway.

They thought either we're not going to get caught or in their own minds are not really doing anything that wrong.

You are an attorney.

You have an experience not only in this particular case but in restructuring and a lot of financial services.

How did you come away feeling how the business works?

I think most brokerage firms out there are good, legitimate firms trying to do their best.

They're trying to do a good job for other people.

Once in a while you get people who start small.

It gets bigger and bigger and so you cannot turn it around.

When people start to do that they're really making money.

They are living the light.

-- living the life.

They're doing the drugs.

People get carried away.

With every good 20 firms you may have one bad one.

You hope he had the oversight.

It is hard to catch.

When it is caught, you'll people serve their time.

Have you seen "wolf of wall street"?" i have not.

I plan when it comes out with a bunch of friends who did this case with me.

We're hoping for the sequel because then we can be in it.

Restitution when it comes to a case like this.

It has to pay back hundreds and tens of million.

I do not think it has been paid back yet.

That was not part of our job.

I have seen how they start launching their money.

They will keep them on the run with his money for a long time.

Do you invest without checking the brokerage?

Do you insist everyone double check everything when you are interesting someone with your financial future?

A something seems too big to true, it probably is.

If someone is saying bill gates

This text has been automatically generated. It may not be 100% accurate.

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