Ivan F. Boesky, the brash Wall Street trader whose cooperation with federal prosecutors helped unravel an epic insider trading scandal in the 1980s, has died at age 87.
Once among the richest and most influential investors, Boesky’s massive fortune was built through taking brazen risks and illegally trading on confidential corporate information.
His trail of disclosure to authorities brought down numerous high-profile figures including “junk bond king” Michael Milken.
The son of a Detroit deli owner, Boesky exemplified the greed that came to define 1980s Wall Street excess. He unabashedly professed “greed is good” – a mentality immortalized by Michael Douglas’ Gordon Gekko character in the 1987 film Wall Street.
After amassing over $200 million through bets on corporate takeover targets, Boesky lived an opulent lifestyle. He wore designer suits, traveled by private jet, and remodeled his massive New York mansion to resemble Monticello.
But his scheme unraveled after Boesky began cooperating with then-U.S. Attorney Rudy Giuliani. Working undercover, he taped incriminating conversations with Milken and other co-conspirators who fed him illegal stock tips in exchange for a cut of Boesky’s profits.
Facing harsh racketeering charges, Boesky agreed to pay a $100 million fine and serve 22 months in federal prison. His disclosures led to the convictions of Milken, merger specialists like Paul Billzerian, and partners at elite firms like Kidder Peabody.
After his 1990 release, Boesky’s divorce from wife Seema exposed the full extent of his riches, as he got $20 million and alimony from her $100 million fortune. He spent his final years in San Diego after his epic rise and fall.
Boesky’s heyday defined an era of naked greed on Wall Street that fueled both profits and prosecutions. His downfall marked a pivotal moment in trading history, even if his actions showed how systemic corruption had become in the financial world.