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1 United States District Court for the District Of Case 1:14-cv-00327 Document 1 Filed 02/27/14 Page 1 of 7 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA JASON LEOPOLD ) 1669 Benedict Canyon Drive ) ) Judge _____________ Beverly Hills, California 90210, ) Civil Action No. ____________ ) PLAINTIFF ) vs. ) ) ) DEPARTMENT OF JUSTICE, ) 950 Pennsylvania Ave., NW ) Washington, DC 20530-0001 ) ) ) DEFENDANT ) ) ) COMPLAINT THE PARTIES 1. Plaintiff Jason Leopold is a citizen of California residing at 1669 Benedict Canyon Drive, Beverly Hills, CA 90210. 2. Mr. Leopold is an investigative reporter covering a wide-range of issues, including Guantanamo, national security, counterterrorism, civil liberties, human rights, and open government. His reporting has been published in The Wall Street Journal, The Financial Times, Salon, CBS Marketwatch, The Los Angeles Times, The Nation, Truthout, Al Jazeera English and numerous other domestic and international publications. Currently, he is a contributor to Al Jazeera America and is the editor-at-large for The Public Record. 3. Mr. Leopold seeks access to certain public records to write a news report for distribution to the general public. His connections and relationships with a wide range of 1 Case 1:14-cv-00327 Document 1 Filed 02/27/14 Page 2 of 7 domestic and international media organizations will ensure that any story he drafts based on the information contained in these records will be published and reprinted 4. Defendant Department of Justice (DOJ) is an agency of the United States. 5. The Federal Bureau of Investigation (FBI) is a component of the DOJ. 6. The DOJ has possession, custody and control of the records Plaintiff seeks. JURISDICTION AND VENUE 7. This action arises under the Freedom of Information Act (“FOIA”), 5 USC § 552. 8. This Court has jurisdiction over the parties and subject matter pursuant to 5 USC § 552(a)(4)(B). 9. Venue is proper in this district pursuant to 5 USC § 552(a)(4)(B). INTRODUCTION 10. Released on Christmas Day, the blockbuster movie The Wolf of Wall Street chronicles the rise and fall of ex-financier Jordan Belfort. 11. The movie, based on Belfort’s memoir The Wolf of Wall Street, stars Leonardo DiCaprio as the swindling, drug-addicted Belfort. 12. The film’s portrayal of Belfort and his cronies has generated significant controversy and spawned several lawsuits. 13. DiCaprio’s character is a depraved and greedy, but charismatic financial executive who gets busted by the FBI for bilking investors out of huge sums of money to line his own pockets. His wild escapades with drugs and prostitutes are on graphic display in the film. 14. The film’s release has sparked public interest in the crimes of the title character. Just who is this Jordan Belfort, the so-called Wolf of Wall Street? How much truth is there in the film’s depiction of Belfort and his cohorts? And most significantly for this lawsuit, why and 2 Case 1:14-cv-00327 Document 1 Filed 02/27/14 Page 3 of 7 for how long did the FBI let Belfort continue to defraud investors before they finally stopped him? Investigative journalist Jason Leopold has filed this lawsuit to learn the answers to these questions, among others. STATEMENT OF FACTS BACKGROUND 15. Jordan Ross Belfort founded the brokerage firm Stratton Oakmont. 16. In 1998, Belfort was indicted for securities fraud and money laundering following an investigation by FBI Special Agent Gregory Coleman. 17. After cooperating with the FBI by wearing a wire, Belfort served 22 months in federal prison. 18. Following his release from prison, Belfort wrote two memoirs, The Wolf of Wall Street and Catching the Wolf of Wall Street. 19. Belfort’s book The Wolf of Wall Street was adapted into a major motion picture with the same name. 20. Belfort is currently a consultant and motivation speaker. 21. Belfort is the sole shareholder of Wolf Holdings, Ltd. and JB Global, Inc., and claims to be 50% owner of Global Motivation. 22. Daniel Mark Porush, a co-founder and former president of Stratton Oakmont, was a co-defendant with Belfort in criminal case 1:98-cr-859 in the Eastern District of New York. 23. In 1999, Porsuh was convicted of securities fraud and money laundering, for which he served 39 months in prison. 24. Todd Garret was a drug dealer who illegally supplied Quaalude to Belfort. 25. Garret also served as a rathole for Belfort. 3 Case 1:14-cv-00327 Document 1 Filed 02/27/14 Page 4 of 7 26. Garret’s wife, Carolyn Garret, a Swiss citizen, assisted Belfort in smuggling millions of dollars into Switzerland. 27. The Nadine was a yacht purchased by Belfort and named after his then-wife Nadine Belfort (born Nadine Caridi, she later changed her name to Nadine Macaluso). 28. Patricia Mellor was the aunt of Nadine Caridi. She was a retired British schoolteacher who served as a front for Belfort’s Swiss bank accounts and helped him smuggle money into Switzerland. 29. Steve Madden, Ltd. is a footwear company founded by Steve Madden. 30. Belfort and Stratton Oakmont helped raise equity for Steve Madden, Ltd. during its initial public offering. 31. During the course of investigating Stratton Oakmont, prosecutors came to believe that Madden participated in the illegal manipulation of Steve Madden, Ltd. stock. 32. Madden pled guilty to securities fraud and money laundering and served a 41- month prison term. 33. Although Madden was forced to resign as CEO of Steve Madden, Ltd., he remained on the payroll as a creative and design consultant, drawing a large salary even while in prison. PLAINTIFF’S FOIA REQUEST 34. On December 30, 2013, Mr. Leopold sent, via certified mail, a FOIA request to the FBI requesting all records relating or referring to: The book The Wolf of Wall Street The book Catching the Wolf of Wall Street The movie The Wolf of Wall Street The boat The Nadine 4 Case 1:14-cv-00327 Document 1 Filed 02/27/14 Page 5 of 7 The living person Jordan Ross Belfort The living person Daniel Mark Porush The deceased person Todd Garret The deceased person Patricia Mellor The corporation Stratton Oakmont, Inc. The corporation Steve Madden, Ltd. The corporation Wolf Holdings, Ltd. The corporation Global Motivation The corporation JB Global, Inc. The federal criminal case United States v. Jordan Ross Belfort, et al., 1:98-cr-859-JG (E.D.N.Y) The federal criminal case United States v. Jordan Ross Belfort, 1:00-cr-126-JG (E.D.N.Y) The sound recording(s) created through Jordan Belfort’s wearing of a hidden microphone (“wire”) as part of his cooperation agreement with the United States. Mr. Leopold requested expedited processing for his request as well as a waiver of fees. 35. According to the records of the U.S. Postal Service. Mr. Leopold’s FOIA request, described in the previous paragraph, was received by the FBI on January 6, 2014. DEFENDANT’S FAILURE TO RESPOND TO MR. LEOPOLD’S FOIA REQUEST 5 Case 1:14-cv-00327 Document 1 Filed 02/27/14 Page 6 of 7 36. As of the filing of this Complaint, Mr. Leopold has not received a response to his FOIA request that is the subject of this lawsuit with a determination as to whether Defendant will grant his request for a fee waiver. 37. As of the filing of this Complaint, Mr. Leopold has not received a response to the FOIA request that is the subject of this lawsuit with a determination as to whether Defendant will release or withhold all of the requested records. 38. Under 5 USC § 552(a)(6)(C)(i), Mr. Leopold is deemed to have exhausted his administrative remedies with regard to the FOIA request that is the subject of this lawsuit because Defendant has failed to comply with the statutory time limit. COUNT I: VIOLATION OF FOIA 39. This Count realleges and incorporates by reference all of the preceding paragraphs. 40. Each of the documents referred to in this Complaint is incorporated herein by reference. 41. Defendant has violated FOIA by improperly withholding the requested records. 42. Defendant has violated FOIA by failing to grant Mr. Leopold’s request for a fee waiver. 43. Mr. Leopold has been and will continue to be irreparably harmed until Defendant is ordered to produce the requested records. PRAYER FOR RELIEF WHEREFORE, Plaintiff respectfully requests that this Court: (1) Declare Defendant’s failure to comply with FOIA to be unlawful; 6 Case 1:14-cv-00327 Document 1 Filed 02/27/14 Page 7 of 7 (2) Declare that Plaintiff is entitled to a fee waiver under FOIA; (3) Order Defendant to process the requested records without further delay and release all nonexempt portions to Plaintiff without charging Plaintiff fees; (4) Grant Plaintiff an award of attorney fees and other litigation costs reasonably incurred in this action pursuant to 5 USC § 552(a)(4)(E)(i); (5) Grant Plaintiff such other and further relief which the Court deems proper. Respectfully Submitted, __/s/ Jeffrey Light_______________ Jeffrey L. Light D.C. Bar #485360 1712 Eye St., NW Suite 915 Washington, DC 20006 (202)277-6213 [email protected] Counsel for Plaintiff 7 .
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