In a major development, Ivan F. Boesky, the prominent stock trader whose cooperation with the government exposed one of the largest insider trading scandals in Wall Street's history, has passed away at the age of 87. The news of his death was confirmed by a representative at the Marianne Boesky Gallery, owned by Ivan Boesky's daughter, although no further details were provided.

Born to a delicatessen owner in Detroit, Boesky rose to prominence as one of Wall Street's wealthiest and most influential risk-takers. He transformed an inheritance of $700,000 from his late mother-in-law into a staggering fortune estimated at over $200 million, earning him a coveted spot on Forbes magazine's list of the 400 richest Americans.

Boesky's involvement in insider trading brought him into the spotlight. Seeking leniency, he collaborated with a young and ambitious U.S. attorney named Rudolph Giuliani, assisting in the investigation that exposed a scandal which shattered promising careers, besmirched reputable investment brokerages, and instilled a sense of paranoia in the securities industry.

Working undercover, Boesky covertly recorded three conversations with Michael Milken, known as the "junk bond king" due to his revolutionary work at Drexel Burnham Lambert in the credit markets. Milken eventually pleaded guilty to six felonies and served 22 months in prison, while Boesky himself paid a hefty $100 million fine and spent 20 months in a minimum-security California prison referred to as "Club Fed," commencing in March 1988.

Notably, it was widely reported that Boesky had made a controversial statement during a commencement address at the University of California at Berkeley in either 1985 or 1986, proclaiming, "Greed is all right, by the way. I want you to know that. I think greed is healthy. You can be greedy and still feel good about yourself." However, Boesky claimed he could not recall uttering those words and refuted another attributed quotation from the 1984 Atlantic Monthly, in which he allegedly expressed that climbing a stack of silver dollars would be "an aphrodisiac experience."

Despite his relentless work ethic with long hours, Boesky enjoyed a life of opulence. He adorned himself in designer attire, traveled in luxurious limousines, private airplanes, and helicopters, and renovated his sprawling 10,000-square-foot mansion in Westchester County to resemble Monticello, complete with a Jeffersonian dome. Boesky admitted during his 1993 divorce proceedings that they owned properties in Palm Beach, Paris, New York, and the south of France.

Boesky made his fortune as an arbitrageur, capitalizing on stocks believed to be targets of corporate takeovers. However, some of his tips were obtained from within the mergers and acquisitions departments of Drexel Burnham Lambert Inc. and Kidder, Peabody & Co. He paid Martin Siegal of Kidder, Peabody $700,000 in cash-filled briefcases during clandestine meetings, while Dennis Levine of Drexel received confidential information in exchange for the promise of a cut of profits.

When Levine's arrest foiled the planned pay-out, he cooperated with authorities, unraveling the scandal further. Boesky followed suit, providing vital information that ultimately resulted in convictions or guilty pleas for various individuals, including Boyd Jefferies, executives from Britain's Guiness PLC, Paul Bilzerian, Salim Lewis, and others. The most prominent arrest was that of Michael Milken, the visionary financier responsible for revolutionizing capital markets with his creation of "junk" bonds.

Milken was indicted on a staggering 98 counts, encompassing securities and mail fraud, insider trading, racketeering, and false statements. During the trial, it emerged that Boesky and Milken had colluded to manipulate securities prices, engage in illicit transactions, evade taxes, and bypass regulatory requirements. Milken eventually pleaded guilty to six securities violations, including promising to cover any losses Boesky incurred while trading the stock of Fischbach Corp.

Boesky's cooperation with the government provided unparalleled insight into securities law violations, comparable in significance to the legislative hearings that led to the establishment of the 1933 and 1934 Securities Acts. The scandal also exposed the dark side of Wall Street, leading to the conviction of several individuals linked to the affair, although subsequent reversals of some convictions fueled arguments that the prosecution exploited racketeering statutes typically aimed at combating organized crime.

As news of Boesky's passing emerges, his legacy remains marred by scandal and controversy. The profound influence he exerted in the world of finance, coupled with his eventual downfall, serves as a stark reminder of the precarious nature of Wall Street and the repercussions of unchecked greed.