A financier by profession, Ivan Boesky became a central figure in the 1980s insider trading scandals and was later convicted for it. He reportedly came to represent greed in Wall Street and was the inspiration behind the character of Gordon Gekko in the 1987 film, “Wall Street.” NBC News reported that although he was initially considered a master at risk arbitrage, which most people attributed to his trading success, it was revealed that Boesky often used inside information about deals that hadn’t yet been announced to the public. He reportedly obtained these tips from investment bankers.
In the mid-1980s, Ivan Boesky was reportedly at the top of his game. He was widely known to be one of the most genius stock traders. The outlet noted that his net worth shot up to $280 million. His trading portfolio was worth $3 billion, and much of it was funded by borrowed money. He lived in a luxurious house on an estate in Westchester County, New York. Along with the large house, he also boasted a condo in Hawaii, an apartment in Paris, and a retreat on the French Riviera. By marriage to his wife, Seema Boesky, he also became one of the owners of the Beverley Hills Hotel.
Merger Mania was a book published by Ivan Boesky in which he claimed that he had a knack for predicting the subsequent business takeovers, which helped him trade to gain profits. In 1986, when Boesky addressed business school students at the University of California, he made a speech that said greed was a good thing. He claimed that “You can be greedy and still feel good about yourself.” The speech was met with a lot of appreciation then. It was also an essential part of the movie Wall Street, The New York Times reported.
How did Boesky get caught?
CNN reported that when investigators became suspicious about Ivan Boesky’s activities, he agreed to cooperate with them. This cooperation allowed investigators to prosecute the “junk bond king” Michael Milken, eventually leading to the downfall of the Drexel Burnham Lambert, an investment bank. Although he was once deemed a financing genius by the general public, this revelation made it clear that Boesky had consistently been receiving tips about upcoming takeovers.
Ivan Boeskey helped several of his business contacts get caught by the authorities after he confessed to his illegal activities. Martin Siegel, a former investment banker at Kidder, Peabody & Company, was one of Boesky’s most important sources of inside information. Investigators found out that after Siegel and Boesky planned a scheme in 1982, Boesky consistently sent Siegel suitcases full of $100 bills via courier.
Per The New York Times, investigators’ attention zeroed in on Ivan Boesky in May 1986. Dennis Levine, a lower-level Drexel banker, had been caught being involved in insider trading activity. Authorities found Boesky’s name in Levine’s notes, further discovering that Boesky was paying Levine in exchange for insider trading tips. On September 17, 1986, Boesky came clean to federal officers. He then agreed to wear a wire in his conversation with Michael Milken and others into insider trading on Wall Street.
The outlet reported that his cooperation with authorities ensured him a lenient trial. He was barred from security trading for the rest of his life and sentenced to three years in prison. Ivan Boesky was also asked to pay a fine of $100 million. Half of the fine was for repaying the profits he made illegally, and the other half was considered a civil penalty.
How did Ivan Boesky die?
Ivan Boesky died at the age of 87 on May 20, 2024. He reportedly died in his sleep at his home in the La Jolla neighborhood of San Diego. No additional information about his death had been revealed. His daughter, Marianne Boesky, reportedly confirmed the news of his death, according to NBC News.
Following his sentencing, Ivan Boesky reportedly spent 18 months in the Lompoc federal prison camp. The camp is a minimum-security facility in Santa Barbara County, California. He was then moved to a Brooklyn halfway house, where he spent four months. The New York Times reported that he was on a prison cleanup crew, which helped him earn some pocket money. Boesky also admitted that he often paid inmates to do his laundry. He was 53 years old when he was released from prison in 1990.
After he was released from prison, his wife sued him for divorce. He allegedly asked for half of her $100 million fortune owing to his poverty. He reportedly got $20 million, an annual payment of $180,000, and a $2.5 million worth of California home. Ivan Boesky then led a peaceful life in La Jolla and remarried. He has a daughter, Marianne, from his first marriage. From his second marriage, Boesky has three sons, Johnathan, William, and Theodore, as well as a daughter, Blu. He also has four grandchildren.
Empires of New York is a 2020 CNBC documentary that follows the rise and success of five icons, including Ivan Boesky. It explores how Boesky, despite his eventual fall, impacted people’s views of power and success.
