Ivan Boesky was a renowned American arbitrageur who came to epitomize the motto “greed is good” during the financial excess of the 1980s. A major player in the hostile takeover and junk bond craze, his words partly inspired the fictional character 澳洲幸运5开奖号码历史查询:Gordon Gekko in Oliver Stone’s movie, “Wall Street.”

In 1987, Boesky was sentenced to three years in prison for his role in an 澳洲幸运5开奖号码历史查询:insider trading scandal. A year earlier, Boesky had cut a deal with investigators, agreeing to turn government witness and pay a $100 million penalty to the U.S. 澳洲幸运5开奖号码历史查询:Securities and Exchange Commis🌠sion (👍SEC).

Early Life and Education

Ivan Boesky was born in 1937 to Russian immigrant parents. His father was a prominent businessman, owning several restaurants and bars in Detroit, Michigan. At age 25, I𒁏van married Seema Silberstein, the daughter of a wealthy family⁠—a move many, including ౠhis father, say was prompted by greed.

In 1964, Ivan obtained a law degree from the Detroit College of Law and shortly thereafter began working as a law clerk. In 1966, he a𒐪nd his wife moved to a Park Avenue apartment in New York City, courtesy of Seema’s father.

Career

Boesky rose to power and fame as the world’s leading takeover arbitrageur and made a fortune investing in stocks of companies that were takeover targets. He was unapologetic about the pursuit of money. In 1986, in a commencement speech at the business school at the University of California, Berkeley, Boesky said: “Greed is all right, by the way. I want you to know that. I think greed is healthy. You can be greedy and still feel good about yourself.” It was a line th🐟at would be im😼mortalized by Gordon Gekko.

It was a message that chimed with the 澳洲幸运5开奖号码历史查询:neoliberal economic policies of Ronald Reagan and Margaret Thatcher. Corporate takeovers and 澳洲幸运5开奖号码历史查询:downsizing were just the tickets for restructuring ossifying and highly unionized old industries. Boesky was, for a time, feted by the financial media, and his gospel of greed was much in demand on the speaking circuit. However, Boesky was considered nouveau riche, known for 澳洲幸运5开奖号码历史查询:conspicuous consumption but not necessarily good taste.

Crime

In 1986, Boesky suffered a spectacular fall from grace when he was implicated in fraud and 澳洲幸运5开奖号码历史查询:insider trading by Dennis Levine, who was cooperating with SEC investigators and U.S. Attorney Rudolph Giuliani. Boesky was accused of using insider information to time trades and manipulate the market. He cut a deal with investigators, agreeing to gather evidence against his associate, 澳洲幸运5开奖号码历史查询:junk bond king 澳洲幸运5开奖号码历史查询:Michael Milken, and pay a $100 million fine.

Investment bank Drexel Burnham Lambert had fueled the leveraged buyout boom through junk bonds and was famous for its 澳洲幸运5开奖号码历史查询:predators’ ball, an investmeꦇnt gala for corpꦦorate raiders and financiers.

Tarnished Legacy

It was the end of an era of roaring corporate takeover activity and 澳洲幸运5开奖号码历史查询:leveraged buyouts funded by junk debt. If all the raiders and junk bond traders were engaged in illegal activity, who would buy all theও🦋se companies at their inflated prices?

In 1987, Boesky was given a relatively light sentence of three years in prison, with the judge citing his cooperation with authorities. Milken was originally sentenced to 10 years in prison (later amended to less than two years) and fined $200 million. In 2020, then-President Donald Trump granted Milken a full and unconditional pardon.

Following the insider trading scandal, Congress increased the penalties for securities violations when it passed the 澳洲幸运5开奖号码历史查询:Insider Trading Act of 1988. Boesky never recovered his reputation and was permanently barred from working in the 澳洲幸运5开奖号码历史查询:securities industry.

Personal Life

澳洲幸运5开奖号码历史查询:After his release, Boesky and his wife divorced, and he moved to California with a $23 million divorce settlement. He adopted a modest lifestyle, fueled by service rather than greed. Withdrawn from the limelight, he embarked on a quest to become a rabbi and help people experiencing homelessness. He died on May 20, 2024.

The Bottom Line

Ivan Boesky was a first-generation American businessman who earned millions in junk bonds and stocks of comp🧸anies that were targets for a hostile takeover. Lured by greed, Boesky engaged in insider trading to inflate his pockets, which ultimately landed him in prison and led to heavy fines.

After serving two years of his three-year sentence, Boesky was released and returned to a tarnished reputation, a broken marriage, and a career he could no longer enjoy. He later moved to California with his multimillion-dollar divorce settlement and pursued a life opposite to what he once live♚d. He died on May 20♏, 2024.