Who was Ivan Boesky? All to know about the famed trader in 1980s insider trading scandal and his cause of death

Ivan Frederick Boesky was an American stock trader known for his prominent role in an insider trading scandal in the mid-1980s.

Early Life and Education

Boesky was born in Detroit, Michigan, to a Jewish family. His family owned several delicatessens and taverns in the city.

He attended Cranbrook School in Bloomfield Hills and later graduated from Detroit’s Mumford High School. Boesky pursued further education at Wayne State University, Eastern Michigan University, and the University of Michigan.

Despite lacking an undergraduate degree, he was admitted to Detroit College of Law (now Michigan State University College of Law) and graduated in 1965.

He later served as an adjunct professor at Columbia University’s Graduate School of Business and New York University’s Graduate School of Business in the 1980s.

Career

In 1966, Boesky and his wife moved to New York where he worked for various stock brokerage companies before starting his own, Ivan F. Boesky & Company, in 1975.

His business plan focused on speculating on corporate takeovers, which proved to be lucrative. By 1986, he had become a successful arbitrageur, amassing a fortune of over $200 million by betting on corporate takeovers and selling The Beverly Hills Hotel for $136 million.

Insider Information Scandal

Boesky’s success came crashing down in 1986 when he pleaded guilty to one count of Conspiracy to Commit Violations of the Federal Securities Laws.

He used inside information provided by investment bankers to purchase securities for entities he was affiliated with, involving companies like Nabisco Brands, Inc., R.J. Reynolds, and Houston Natural Gas Corp.

His cooperation with authorities led to prosecutions of others, including financier Michael Milken. Boesky received a prison sentence of 3+1⁄2 years and a $100 million fine, permanently prohibiting him from working with securities.

Personal Life

Boesky married Seema Silberstein in 1962, and they had four children. After their divorce in 1991, Silberstein agreed to pay him a substantial settlement. Boesky later remarried Ana, with whom he had another child.

Cause of Death

Boesky passed away at the age of 87, as reported by the New York Times on May 20, 2024. The cause of death was not immediately disclosed. His daughter, Marianne Boesky, confirmed his death to the New York Times but did not provide further details.