Ivan F. Boesky, the prominent stock trader whose involvement in one of the largest insider trading scandals shook Wall Street, has passed away at the age of 87, according to a representative at the Marianne Boesky Gallery, owned by Ivan Boesky's daughter. The news of Boesky's death was confirmed, but no further details were provided.

Hailing from a humble background as the son of a Detroit delicatessen owner, Boesky rose to become one of the wealthiest and most influential risk-takers on Wall Street. Through savvy investments, he turned $700,000 from his late mother-in-law's estate into a fortune exceeding $200 million, which earned him a spot on Forbes magazine's list of the 400 richest Americans.

Boesky's name became synonymous with insider trading when he cooperated with U.S. attorney Rudolph Giuliani in a bid for leniency. This collaboration led to the uncovering of a scandal that not only tarnished the careers of promising individuals but also left an indelible mark on reputable U.S. investment brokerages and instilled a sense of paranoia within the securities industry.

Working undercover, Boesky secretly recorded three conversations with Michael Milken, known as the "junk bond king," whose work at Drexel Burnham Lambert revolutionized the credit markets. As a result, Milken pleaded guilty to six felonies and served 22 months in prison. Boesky, on the other hand, paid a hefty $100 million fine and spent 20 months in a minimum-security California prison nicknamed "Club Fed" starting in March 1988.

The scandal took an intriguing turn when it was revealed that Boesky had allegedly made controversial statements during a commencement address at the University of California, Berkeley. He was widely quoted as saying, "Greed is all right, by the way," and "Greed is healthy." Boesky, however, denied these quotes and claimed to have no recollection of making such statements.

Boesky's extravagant lifestyle was evident despite his legal troubles. He indulged in designer clothing, traveled in luxurious limousines, private airplanes, and helicopters, and even renovated his 10,000-square-foot mansion in Westchester County, resembling Monticello.

As an arbitrageur, Boesky made millions by betting on stocks likely to be targeted for corporate takeovers. However, some of his information came from insiders at Drexel Burnham Lambert Inc. and Kidder, Peabody & Co., such as Dennis Levine and Martin Siegel. In return for confidential information, Boesky promised them a share of the profits, ranging from 1% to 5%.

Boesky's arrest occurred when he paid Siegel $700,000 in cash, delivered in briefcases during secretive meetings on the streets of Manhattan. He profited greatly from Siegel's tips, which included advance knowledge of takeovers, such as Getty Oil and Carnation Co.

The scandal reached its peak when Levine, tripped up by his own insider trading, was arrested before receiving his share. Facing severe penalties, Levine cooperated with authorities and divulged everything, prompting Boesky to follow suit. Boesky's cooperation led to the convictions or guilty pleas of various individuals, including stockbroker Boyd Jefferies, executives of Guinness PLC, takeover strategist Paul Bilzerian, and stock speculator Salim Lewis.

However, the most significant arrest resulting from Boesky's cooperation was that of Michael Milken. Milken, who had revolutionized the capital markets, especially through the use of "junk" bonds to finance leveraged buyouts, faced 98 counts, including securities fraud and insider trading. Ultimately, he pleaded guilty to six securities violations.

Boesky's cooperation with the government provided vital information about securities law violations, comparable to the impact of the historic 1933 and 1934 Securities Acts hearings. The revelations sent shockwaves through the financial community and drew attention to the magnitude of insider trading on Wall Street.

The scandal also took a dark turn when John Mulheren Jr., a Wall Street executive, was apprehended while en route to murder Boesky and Boesky's former head trader. Mulheren's attorney claimed that Boesky was a repeat liar and described him as a "pile of human garbage" motivated to say anything in exchange for leniency from federal authorities.

Boesky's death marks the end of a chapter in Wall Street history that forever altered the perception of insider trading and the integrity of the securities industry. The legacy of his cooperation and the scandal it uncovered will continue to resonate in financial circles for years to come.

(Note: The article is based on the information provided and does not reflect any additional developments after the mentioned events.