News

Buzz

Life

Quizzes
PRO

MOT

Videos

More

Get Our App!

ED

BUSINESS

Exclusive: Secrets From The Sexist

Pitchbook Of One Of Wall Streets More
Notorious Firms
BuzzFeed has obtained the Golden Pitchbook used by top brokers at John
Thomas Financial. In its pages: How cold-calling brokers pressure prospects to buy
stocks from the troubled firm.

13 People Talk About The Teachers

Who Changed Their Lives Forever
P R O M OT E D BY

Windows

posted on May 21, 2013, at 10:57 p.m.

Mariah Summers
BuzzFeed News Reporter

Berkeley Wants Sex

Assault Lawsuit
Dismissed Because
Victims Weren't Abused
Again
by Mary Ann Georgantopoulos
Connect With

Business

Like Us On Facebook

Follow Us On Twitter

Follow Us On Apple News

John Thomas Financial founder Tommy Belesis in the 2010 film Wall Street: Money Never Sleeps.
Courtesy of 20th Century Fox.

More News
John Thomas Financial Inc. is a brokerage house straight out of the movie Boiler
Room, with brokers fueled by vending machines stocked with nothing but energy
drinks and music from Rocky films blaring from speakers. Its founder, Anastasios
Tommy Belesis, even had a role in the sequel to Wall Street.
Junior brokers cold-call prospects for up to 14 hours a day, working from a
memorized script that they rehearse by screaming pitches across the room to each

other before the opening bell, a former employee of the firm told BuzzFeed.
BuzzFeed obtained both that script, used by brokers of every level at the 200employee firm, as well as another script known internally as the Golden
Pitchbook, which is given only to a privileged few senior brokers at the firm.
Considered a performance reward for top brokers, the Golden Pitchbook is
handed down from their mentors at the firm who have also received the elusive
tome, the source said.

Lamar Odom Discharged From Las

Vegas Hospital, Is Defying The Odds

Its secret, privileged information, said the source. Some people at the firm dont
even know about it.
The books origins date to the 1980s at Bear Stearns, and it has gone through
various iterations on its journey into the hands of the lucky JTF broker who, after
impressing superiors, is walked down the street to a Kinkos, where senior brokers
supervise the books copying and hand-off.

The Liberals Will Form A Majority

Government In Canada

Its a reward for senior brokers to give to junior brokers on their team as an
investment in them, the source said. Once they had it, they used it all the time.
The book offers a rare behind-the-scenes look into the world of high-pressure, hardscrabble Wall Street stock jockeying, featuring detailed scenarios and responses
used to pitch stocks to prospective clients.

Oscar Pistorius Released From South

African Prison Into House Arrest

The aggressive pitch tactics in the book and supporting JTF documents, such as
what one scenario described by the source as Dont Pitch The Bitch, have caught
the attention of the FBI, the Securities and Exchange Commission, and the Financial
Industry Regulatory Authority.
In March, the SEC charged Belisis with fraud for a hedge fund scheme in which he
steered bloated fees to JTF. A month later, Finra filed a formal complaint against
JTF regarding the firms actions in Februrary 2012, when it allegedly pushed shares
of America West Resources, Inc. (AWSR) common stock on investors, thus inflating
the price. Brokers at the firm also allegedly failed to execute sale orders for clients
in a timely manner but sold the majority of its proprietary shares for a more than $1
million profit.

Ohio Cancels Upcoming Executions,

Reschedules Them For Starting In 2017

The firms alleged failure to execute at least 14 client sell orders lost investors
thousands, and America West is now in bankruptcy. In an even more outrageous
twist, the Finra complaint accuses Belesis of intimidating employees with threats of
maligning their broker records and, in one case, running over an employee with his
car.

Deaths Of Family In Arizona Lake

Investigated As Murder-Suicide

Against that backdrop, here are some of the techniques outlined in the Golden
Pitchbook used by JTF brokers. The firms attorney, Robert Bursky, in February told
Bloomberg it did not use high-pressure tactics. He said at the time it doesnt use
scripts. Bursky did not respond to BuzzFeeds requests for comment.

Israelis And Palestinians Are Arming

Themselves Amid Lone Wolf Attacks

Blake Shelton Sues In Touch Weekly

Over Rehab Story

Giovanni Ribisi in a scene from the 2000 film, Boiler Room. Courtesy New Line Cinema

Meet the GMO Debate's Dr. Jekyll

Scenario #1: Speak to My Wife/Dont Pitch the Bitch

When a potential client (prospect) told a JTF broker he wanted to speak to his wife
before placing an order, the broker would offer a series of rebuttals designed to
pressure the prospect to buy immediately. According to a source familiar with the
firm, this method is referred to internally at JTF as Dont Pitch the Bitch, a bit of
industry jargon made famous in Boiler Room that discourages brokers from making
sales pitches to women and implores male prospects not to involve their wives or
girlfriends in stock-buying decisions.

6 Fires Set At Mostly Black Churches In

St. Louis Area Ruled Arson
MORE NEWS

(Prospect) if you want to call me back so you can ask your wife if you can buy the
stock, I will call my wife and see if I can sell you the stock, come on! You make
business decisions daily without your wife.
Lets face it, if you go home and tell your wife that you want to invest with a broker
whom you dont know very well, chances are you will be hit with a frying pan and
spending the night on the couch. However, once she sees my brochure from the
firm and a dossier that I send you in the FedEx package with a buy confirmation,
what do you think she is going to say? Besides, it is a lot easier to beg for
forgiveness than to ask for permission right?
Should I send it to your home where your wife will throw it out or to the office
where you will put it by your merchant banker book that you never read either?

Now Buzzing

This Is What Happens When Mexicans

Try On Stereotypical Halloween
Costumes

Scenario #2: Not Interested/The Slap and Hug

If a prospect told a JTF broker flat-out that he was not interested, the broker would
use a technique called the slap and hug to essentially belittle the prospect before
building him back up through kindness or feigned concern. Brokers also used
reverse technique, the hug and slap, at times.

These TV Shows Explain Why Aussie

'90s Kids Are So Messed Up

I have never in my life met anyone who wasnt interested in making serious money.
(Firm) is making more serious money for people than anyone out there. It is not that
you are not interested, something else is bothering you. I am a problem solver.
Perhaps if you tell me what your actual concern is, I could help.

15 Images That Prove Britney Spears Is

The Queen Of Target
PRO

MOT

ED

Scenario #3: The Long-Term Relationship

PRO

MOT

ED

JTF brokers want prospects to know that they are in this thing for the long haul, but
they are definitely NOT gay.

Lets face it, your first step is the hardest. I am not looking for a one night stand.
You married your girlfriend right? Let me ask you a question, you met your wife, but
you did not jump into bed with her on the first night did you? Of course not!! Maybe
you held her hand or maybe even kiss. Well look, I am not looking to jump into bed
with you or even get a kiss, I simply want you to hold my hand with 100 shares and
[in] 3-6 months you are gonna (sic) want to get into bed with me quite frankly. I am
not that guy [laugh]. So do the 100 shares not because its good for me, but
because it is good for you.

12 Internet Problems Kids Today Dont

Understand

24 Hilarious Tweets Every Book Lover

Will Appreciate

Scenario #4: This Company Is Going to Be Bought

Soon So You Need to Buy Now
To coax a reluctant prospect into buying immediately, the script contains a
boilerplate response scenario suggesting that whatever stock the broker is pitching
is about to get acquired, likely for a premium.

More importantly, when I have timed it with a near term event I have made a
tremendous amount of money the event here is a possible takeover. We are not
buying this stock for earnings; we are buying it for a takeover, which I feel is
eminent.

Scenario #5: My Clients Are Rich and Smart, Unlike

You
And the more you invest with JTF, the better your chances of becoming rich.

New "Star Wars: The Force Awakens"

Trailer Features Tons Of New Details

These 10 Basic Eye Makeup Styles Will

Give You Life
PRO

MOT

ED

I want to say sincerely: I have many clients with net worths ranging between
$500K to $50 millionIf I could just show you what lies ahead in the future and the
types of deals I get involved with, I know you would be very impressed.
My firm has turned the average investor into millionaires and the millionaires into
multi-millionaires. Not on one trade, but on a series of 3-4 transactions over a 1-2
year time frame.

People Share Bad Advice Stories

Are you familiar with George Soros? This is the guy you want on your side.Lets
not let him make ALL the money!

17 Pictures Guaranteed To Make You

Sad

31 Tweets About Halloween That'll

Actually Make You Laugh

Justin Trudeau And "American Horror

Story" Star Finn Wittrock Are Basically
The Same Person

Vin Diesel stars in New Line Cinemas drama Boiler Room. David Lee/New Line. images.newscred.com

Scenario #6: You Have Money, You Just Dont Want to

Give It to Me
A client claiming to not have money to invest is considered an insult, or an outright
lie. Literally.

No disrespect, but you telling me you are not liquid is an insult to both you and me!
A guy with (amount) in the market has a couple hundred in the bank to back it up.
There is always an excuse not to buy stock, but there is never an excuse not to
make money!
Guys like you dont ever let your bank accounts fall below 6 figures. Its not that
you cant do it, its that you wont do it. I am going to buy you (shares) of (stock) at
(price), money is due in one week but make me a promise. When I am not just right
but exactly right, next time out we work in size and you send me 3 of your golfing
buddiesOK?
(Prospect) if I offered you a Rolls Royce in min[t] condition today for $10,000 could
you come up with the money? OF COURSE YOU COULD!! Lets be candid, if you
like my idea today, you could come up with ten times that amount.

Scenario #7: Trust Us, We Did the Research for You

The script takes pains to instruct brokers in ways to avoid sending additional
information requested by the client on the stock being pitched.

By the time you get information or research reports, you are buying the stock 5
points higher. The way to make money in this business is to buy in to fundamentally
sound companies that are timed with near term events or catalysts. With this
approach I have made a fortune for a select group of individuals.

This Ad Claims Men Will Follow Girls

Into Restroom Stalls If Houston
Upholds Nondiscrimination Law

Can We Guess If You'd Survive The

Chamber Of Secrets?
MORE BUZZ

Ok (prospect) Fine! I have no problem with that, but let me ask you something first,
correct me if I am wrong. What youre telling me is that if I send you the information
you want about the company and it mentions the merits I described, that you will
open an account? (NO) Then obviously (prospect) the request for information is not
your real concern.

Scenario #8: Buy Now or You Will Miss Out

Please understand, the secret of our program is matching timing opportunity. If we
thought next month was the time to buy, I would not be calling you today. I would
be calling you next month. You need to understand what we are doing here. I can
appreciate now may be a bad time, but unfortunately the market is not going to
wait for you. Lets be honest, when I call you back you will ask me to call you back
again, then it will be tax time. To make exceptional returns, you must but on value
and at the right timing. You know what sir? Your worst nightmare is to work with a
broker who brings you a winning situation and is willing to play phone and mail tag
with you. We both dont have time for it. The reason my clients retain a broker like
myself is for my exact pricing and timing. Without these 2 tools, you are tying my
hands behind my back I may as well work at Charles Schwab.

Bonus Scenario: Misusing the Term Fiduciary

One response in the pitchbook says that JTF brokers have a fiduciary
responsibility to call back individuals whom they have spoken to.
The use of the term fiduciary responsibility is problematic in that it grossly
misstates the brokers professional standards of conduct when it comes to the
relationship with a prospect. By law, the SEC does not require brokers to have a
fiduciary duty to their clients, only financial advisers.
In fact, the commission has been pushing to change the laws pertaining to financial
services professionals and their fiduciary responsibility to their clients, and has
even acknowledged that investors are confused by the level of fiduciary
responsibility their financial planning professional has to them.
The SEC has formally recommended a rule that would implement a uniform
fiduciary standard of conduct for broker-dealers and investment advisers when
providing personalized investment advice about securities to retail customers.
Like, say, customers who may have just bought the next America West from a
broker at John Thomas Financial.

The Golden Pitchbook

of24

JTF Stock Scripts and Closes

Self Closes
1. Self 1: Stop Loss/ Downside Protection Close
When I make an investment for a client, I have a very
stock is moving in the right direction or the wrong direction, agreed? Now, if any

of5

More

NEXT ON BUZZFEED NEWS

My Long, Exhausting
Summer Of Street
Harassment Is...
9 American Cities Everyone
Should Visit In Their Life
Size doesn't matter when it comes to cities
even the smallest ones have had an impact on
our world. You can now find and own all these
cities and others voted by YOU in the brandnew MONOPOLY: Here & Now U.S. Edition
game!
P R O M OT E D BY

MONOPOLY Here & Now

MORE BUZZ

Unique Face Wall Clock

Exclusive: Therapist Enlisted To Help J.C. Penney Employees Cope Compares
Retailers Past 17 Months To 9/11
Exclusive: Girls Abandoning Abercrombie & Fitch, Driving Decline
21 Miserable Wall Street Guys Who Had To Wear Suits Today
Tagged:wall street, boiler room, brokerage house, brokers, clients, fiduciary duty, golden pitch book, john thomas financial, sec,
stock

Advertise Jobs Mobile Newsletter

US Edition

About Press RSS Privacy User Terms Ad Choices Help Contact

2015 BuzzFeed, Inc