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Ivan Boesky
Convicted Wall Street Insider Trader; Architect of 1980s Financial Fraud
Stock Speculator; Arbitrageur; Cooperating Witness
Overview
Ivan Frederick Boesky was an American stock trader and arbitrageur who became the face of 1980s Wall Street corruption. Operating from his New York trading firm; Ivan F. Boesky & Company; he amassed a fortune exceeding $200 million by illegally trading on inside information obtained from investment bankers; most notably Dennis Levine at Drexel Burnham Lambert. Boesky's most famous moment came at a 1986 UC Berkeley commencement speech where he declared "Greed is all right; I think greed is healthy" ; a line that inspired Gordon Gekko's "greed is good" speech in the 1987 film Wall Street. After the SEC caught Levine; who cooperated and exposed Boesky; the government secured Boesky's cooperation in exchange for a reduced sentence. Boesky then wore a wire and helped the SEC build cases against junk bond king Michael Milken and others at Drexel Burnham Lambert. He paid a $100 million SEC penalty; served 22 months in federal prison; and was permanently barred from the securities industry. His cooperation triggered the collapse of Drexel Burnham Lambert; which filed for bankruptcy in 1990; and ended the era of leveraged buyout excess.
Key Affiliations
Controversies & Concerns
"Greed is all right" speech at UC Berkeley (1986) became symbol of Wall Street excess; inspired Wall Street film
Paid $100 million SEC penalty; one of largest individual penalties in securities enforcement history at the time
Cooperated with government and wore a wire to help build case against Michael Milken
His cooperation led to the collapse of Drexel Burnham Lambert; which filed bankruptcy in 1990
Illegally traded on inside information provided by Dennis Levine and others
Wife Seema Boesky (daughter of hotel magnate Ben Silberstein) divorced him after conviction
Related Investigations (1)
Criminal Charges & Violations
2 documented violations
15 U.S.C. § 78j(b); SEC Rule 10b-5Securities Fraud; Insider trading on material non-public information obtained from investment bankers(Federal)
15 U.S.C. § 78ffConspiracy to commit securities fraud; coordinated insider trading ring with Dennis Levine and others(Federal)
Known Associates & Connections
Michael Milken
Junk bond king exposed by Boesky's cooperation with SEC
Dennis Levine
Investment banker who provided inside tips to Boesky; first to be caught and cooperate
Sources & Documentation
2 documented sources from official records, investigations, and reports
Personal Information
- Born
- March 6, 1937
- Birthplace
- Detroit, Michigan, USA
- Also Known As
- Ivan the Terrible (Wall Street nickname)
Education
- •Cranbrook School
- •University of Michigan
- •Detroit College of Law (Wayne State University)
Key Timeline
March 6, 1937
Born in Detroit; Michigan to Russian Jewish immigrant family
1975
Founds Ivan F. Boesky & Company; begins stock arbitrage operations
May 1986
Delivers "Greed is all right" speech at UC Berkeley commencement
November 14, 1986
SEC announces $100 million penalty and guilty plea; Boesky agrees to cooperate
1987
Cooperates with SEC wearing a wire; helps build case against Michael Milken
December 1987
Sentenced to 3 years in federal prison
1989
Released after serving 22 months at Lompoc Federal Prison Camp
1990
Drexel Burnham Lambert files bankruptcy; largely due to cases built on Boesky cooperation
May 20, 2024
Dies at age 87