Life and Career
Boesky was born in Detroit, Michigan. 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, Boesky, who is Jewish, 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 a 2012 interview with the New York Times, a cousin of Boesky's disclosed that he is living in La Jolla, California.
Read more about this topic: Ivan Boesky
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