ACCESSING CLASSIFIED FILES
Decrypting documents...
Your connection is being monitored
Back to Individuals
high risk
Martin Siegel
Convicted Insider Trader; Former Star M&A Banker at Kidder, Peabody & Co.
Head of Mergers & Acquisitions, Kidder Peabody; Later Managing Director, Drexel Burnham Lambert
Overview
Martin Siegel was one of Wall Street's most prominent mergers-and-acquisitions bankers in the 1980s, first at Kidder, Peabody & Co. and later at Drexel Burnham Lambert. He secretly sold inside information about pending mergers to arbitrageur Ivan Boesky in exchange for briefcases stuffed with cash, receiving at least $700,000 in payments. Siegel provided advance notice of major deals including Martin Marietta, Carnation Company, and other Kidder Peabody advisory clients. When caught as part of the unraveling 1980s insider trading scandal, Siegel cooperated extensively with prosecutors, leading to the $25.3 million SEC settlement against Kidder Peabody. He pleaded guilty to insider trading conspiracy and tax evasion in February 1987 and was sentenced to two months in prison.
Key Affiliations
Controversies & Concerns
Sold inside M&A information to Ivan Boesky in exchange for briefcases filled with cash (at least $700,000)
Provided advance notice of Martin Marietta, Carnation Company, and other pending Kidder Peabody deals
His cooperation exposed insider trading at Kidder Peabody and led to $25.3M SEC settlement against the firm
Received remarkably lenient 2-month prison sentence for extensive cooperation
Related Investigations (1)
Criminal Charges & Violations
2 documented violations
15 U.S.C. 78j(b), SEC Rule 10b-5Insider Trading Conspiracy: Selling material nonpublic M&A information for cash(Federal)
26 U.S.C. 7201Tax Evasion: Failure to report cash payments from Boesky(Federal)
Known Associates & Connections
Ivan Boesky
Paid Siegel cash for inside M&A information
Sources & Documentation
1 documented sources from official records, investigations, and reports
Personal Information
- Born
- 1948
- Birthplace
- United States
Education
- •Harvard Business School (MBA)
Key Timeline
1984-1986
Passes inside information about pending Kidder Peabody M&A deals to Ivan Boesky in exchange for cash payments
1986
Leaves Kidder Peabody to join Drexel Burnham Lambert
February 13, 1987
Pleads guilty to insider trading conspiracy and tax evasion; cooperates extensively
1987
His cooperation leads to $25.3M SEC settlement against Kidder, Peabody & Co.
1990
Sentenced to 2 months in prison for his cooperation