Ivan F. Boesky, a notorious figure in Wall Street history, died on May 20, 2024, at the age of 87. Known for his involvement in insider trading scandals during the 1980s and his aggressive style of arbitrage trading, Boesky's life and career have left a lasting impact on the financial industry.
Boesky began his Wall Street journey as a stock analyst at L.F. Rothschild after graduating from Detroit College of Law in 1964. He later opened his own brokerage firm, Ivan F. Boesky & Company, with the help of his wife's family.
By the mid-1980s, Boesky had amassed a significant fortune through illegal stock tips and insider trading deals. His net worth was reportedly around $280 million (about $818 million in today's currency), and his trading portfolio was valued at approximately $3 billion (about $8.7 billion today).
Boesky's cooperation with federal investigators led to the downfall of investment bank Drexel Burnham Lambert and its junk bond king, Michael Milken. Boesky secretly recorded conversations with Milken and provided authorities with information about insider trading at both Drexel Burnham Lambert and Kidder, Peabody.
Milken was eventually indicted on 98 counts including securities fraud, insider trading, and racketeering. He eventually pleaded guilty to six securities violations and served time in prison.
Boesky's actions brought an end to a decade of frenzied takeover activity and the celebration of conspicuous wealth on Wall Street. His story inspired the character Gordon Gekko in Oliver Stone's movie 'Wall Street.'
Despite his criminal activities, Boesky left behind a lavish lifestyle. His estate included a sprawling Westchester County house adorned with a Renoir and carpets embossed with his monogram, an Manhattan pied-à-terre, a retreat on the French Riviera, a lavish Paris apartment, and a condo in Hawaii. He was also part owner of the Beverly Hills Hotel.
Boesky's legacy serves as a reminder of the importance of ethical business practices and transparency in financial markets.