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1982

A Wall Street scheme is hatched

In January 1983, although little information had been exchanged, Boesky sent a courier with a secret code and a briefcase containing $150,000 in $100 bills to be delivered to Siegel at the Plaza Hotel.

Despite the pressure, Siegel and Boesky met ata deliin January 1985, where Siegel demanded $400,000. This time, the cash drop-off was made at a phone booth. Siegel, who was apprehensive about his relationship with Boesky, decided to put an end to it after he had received his money. Still, he continued to trade inside information with other Wall Street executives.

In 1986, the illegal schemes, which by then included many of the biggest traders in the country, came crashing down. Arrests were made up and down Wall Street, and Boesky and Michael Milken, the junk bond king charged with violating federal securities laws, were no exception.

Siegel turned out to be one of the few cooperative witnesses for the government and virtually the only one who showed remorse for his role in the fraud, causing him to be ostracized on Wall Street. Nevertheless, he did fare better than the others: Milken received a 10-year sentence and Boesky received 3 years,but Siegel was only required to return the $9 million he had obtained illegally. The entire incident came to symbolize the era of unfettered greed on Wall Street in the mid-1980s.

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