Ivan Frederick Boesky (born March 6, 1937) is an American stock trader who is notable for his prominent role in a Wall Street insider trading scandal that occurred in the United States in the mid-1980s.
Life and career
Boesky was born in Detroit, Michigan, to a Jewish family. He attended the Cranbrook Kingswood School in Bloomfield Hills before graduating from Detroit's Mumford High School. He then took courses at Wayne State University, Eastern Michigan University and the University of Michigan. He was admitted to Detroit College of Law (now Michigan State University College of Law) despite lacking an undergraduate degree and graduated in 1965. In the 1980s, he served as an Adjunct Professor at Columbia University's Graduate School of Business and at New York University's Graduate School of Business.
By 1986, Boesky had become an arbitrageur who had amassed a fortune of more than US$200 million by betting on corporate takeovers and had also gained control as Chairman of The Beverly Hills Hotel Corp. (after the death of his father-in-law who had run it for 25 years). The U.S. Securities and Exchange Commission investigated him for making investments based on tips received from corporate insiders. These stock acquisitions were sometimes brazen, with massive purchases occurring only a few days before a corporation announced a takeover. Boesky was on the cover of Time magazine December 1, 1986.
Although insider trading of this kind was illegal, laws prohibiting it were rarely enforced until Boesky was prosecuted. Boesky cooperated with the SEC and informed, including the case against financier Michael Milken. As a result of a plea bargain Boesky received a prison sentence of 3.5 years and was fined US$100 million. Although he was released after two years, he was permanently barred from working in securities. He served his sentence at Lompoc Federal Prison Camp near Vandenberg Air Force Base in California.
Boesky never recovered his reputation after doing a stint in prison, and paid hundreds of millions of dollars in fines and compensation for his Guinness share-trading fraud role and a number of separate insider dealing scams. Later, he embraced his Judaism and even took classes at the Jewish Theological Seminary of America where he had been a major donor; however, in 1987, following the fallout from his financial scandal, The New York Times reported that "after Ivan F. Boesky had been fined $100 million in the insider-trading scandal, the Jewish Theological Seminary, acting at his request, took his name off its $20 million library."
His involvement in criminal activities is recounted in the book Den of Thieves by James B. Stewart.
Another version of these events is recounted by Jonathan Guinness in his book "Requiem for a Family Business" which suggests the SEC granted him immunity from prosecution and allowed him to continue to insider trade for significant profit whilst wire tapping him to entrap others.
In popular culture
Greenspan is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. First appointed Federal Reserve chairman by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006 after the second-longest tenure in the position. His father Herbert Greenspan was of Romanian-Jewish descent and his mother Rose Goldsmith of Hungarian-Jewish descent.
Fastow was the founder and CFO of Enron Corporation that was based in Houston, Texas until the U.S. Securities and Exchange Commission opened an investigation into his and the company's conduct in 2001. Fastow was one of the key figures behind the complex web of off-balance-sheet special purpose entities used to conceal their massive losses. Fastow is serving a six-year prison sentence for charges related to these unlawful acts.
Edelman began his career on Wall Street in 1961. In 1969 he formed Mack, Bushnell and Edelman where he was CEO. Edelman’s Wall Street businesses included Investment Banking, Money Management, and Derivatives Trading. In 1988, he taught a course called "Corporate Raiding - The Art of War" at Columbia Business School, using as his textbook, Sun Tzu's The Art of War.
Wasserstein was an American investment banker and businessman. He was a graduate of the McBurney School, University of Michigan, Harvard Business School, and Harvard Law School, and spent a year at Cambridge University. He was the Chairman and CEO of Lazard Ltd.
Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes. Soros has said that he grew up in a Jewish home and that his parents were cautious with their religious roots.
Boesky is a Wall Street financier and arbitrageur. Did time for stock manipulation. Told UC graduates that Greed is good (model for Gordon Gecko in film Wall Street w/ Michael Douglas.) Became born-again Jew in jail. What a crock. Michael Milliken, his co-defendant, is also Jewish.
Schiff was a German-born Jewish American banker and philanthropist, who helped finance, among many other things, the Japanese military efforts against Tsarist Russia in the Russo-Japanese War.
Blankfein is a Jewish American business executive. He is currently the CEO and Chairman of Goldman Sachs. He has been in this position since the May 31, 2006 nomination of former CEO Henry Paulson as Secretary of the Treasury under George W. Bush.
Rich is an international commodities trader and entrepreneur. He is best known for founding the commodities company Glencore. He was indicted in the United States on federal charges of illegally making oil deals with Iran during the late 1970s-early 1980s Iran hostage crisis and tax evasion. He was in Switzerland at the time of the indictment and has never returned to the U.S.
Goldman was a German-born Jewish American businessman and entrepreneur. He was born in Trappstadt, Germany and emigrated to the United States in 1848. He was a co-founder of Goldman Sachs, which is now one of the world's largest and most prestigious global investment banks and is now a bank holding company.