| Director | Ben Younger |
|---|---|
| Budget | $7 million |
| Box office | $28 million |
In 1999, Seth Davis runs a successful casino from his apartment, catering to college students. His father, federal judge Marty Davis, views him as a disappointment for his illegal activities and dropping out of Queens College. Cousin Adam introduces his associate, Greg Weinstein who plays blackjack, and recruits Seth into J. T. Marlin, a brokerage firm off the Long Island Expressway, promising he will get rich.
Seth attends the firm's group interview. Co-founder Jim Young explains work expectations, and how to become a millionaire within three years. Their techniques include cold calling investors to sell stock. Seth starts as a stockbroker trainee, requiring forty accounts to close for Greg's team, and passing the Series 7 exam, before working independently. To motivate brokers, the firm throws lavish parties with women, gambling, drugs and alcohol. He quickly closes the required accounts, wins his father's grudging approval, and starts romancing secretary Abbie Halpert, Greg's ex-girlfriend.
Gradually, he learns J. T. Marlin (which legitimate brokers believe was named to mimic J. P. Morgan) is running pump and dump schemes to create artificial demand in the stock of expired or fake companies and speculative penny stocks. After "pumping" questionable or illegal stock, the founders sell and trade for legitimate stocks for record profits. Meanwhile, investors lose their money, having no one to sell shares to when prices plummet. FBI agents investigating the firm through phone taps, plan on turning Seth into their informant, while also pressuring Abbie for better results.
Seth passes his Series 7, becoming a broker. He calls Harry Reynard, purchasing manager for a gourmet food company. Initially reluctant, Harry invests after Seth lies about potential value, selling one-hundred shares at $8 each. When stock value drops, Harry asks what went wrong, but Seth persuades him to buy $50,000 more; Harry's life savings to purchase a house. After the stock tanks, Harry's wife Sara takes their children and leaves him.
Marty discovers the firm's "chop shop" disrepute and disowns Seth, accusing him of "destroying peoples' lives." Feeling guilty, Seth resolves to make the firm pay. Investigating further, he discovers the founders already prepared to abandon J. T. Marlin, destroy records, cut employee ties, and rebrand under a new firm, leaving victims to lengthy legal battles with little hope to recover their money. At Marty's office, Seth tearfully explains he closed his cardroom and only became a broker to gain his approval. He asks Marty to help with a scheme to rob the firm of $300,000 to bring them down and repay firm victims. His judgeship in jeopardy, Marty initially refuses, but later calls to reconcile and offer his help. The FBI record Marty's call with Seth, who is arrested for violating twenty-six SEC and NASD regulations. They offer immunity for Seth's testimony, but threaten to involve Marty, risking impeachment and disbarment. Seth declines, asserting he will refuse to cooperate if his father is implicated. They come to an agreement; Seth is released after staying overnight.
Following the FBI's instructions, Seth returns to work the next morning and copies evidence to a floppy disk. To recover Harry's investment, Seth lies to firm founder Michael Brantley that Harry is "a whale" from which they will lose even more money if they don't placate him with 100,000 shares of their next IPO. Brantley agrees, with a caveat; Harry cannot sell until the firm sells their own shares. Seth double-crosses both Michael and Greg by having senior broker Chris Varick sign Harry's sell ticket explaining, Chris could do one thing right before the firm is raided, ending their broker careers. Chris reluctantly agrees. The FBI arrives and raid the building as Seth leaves, wondering what to do with his life after severing ties with J. T. Marlin.