Inside the life of Michael Milken, the prominent former Wall Street financier who was pardoned by President Trump over insider trading charges from the 1980s
Born to Jewish parents in California, Milken is a graduate of the University of California, Berkeley, and has an MBA from the University of Pennsylvania's Wharton School of Business. He's married to his high school sweetheart.
After graduating from Wharton, he started working at Drexel Burnham Lambert, where his work popularizing the use of high-yield bonds, popularly known as "junk bonds," transformed Drexel into one of the largest banks on Wall Street. Drexel filed for bankruptcy in 1990, shortly after Milken's conviction; it is now defunct.
Source: Business Insider
At Drexel Burnham, Milken provided funding to companies that had previously been unable to secure funding through standard investment-grade bonds. Neither junk bonds nor leveraged buyouts were invented in the 1980s, but Milken was a key figure in expanding their use on Wall Street during the decade.
Source: The Balance, Investopedia
Milken helped provide funding to news industry pioneers like Ted Turner, founder of CNN; Rupert Murdoch, founder of News Corp; and Craig McCaw, a cell phone industry entrepreneur.
Source: Business Insider
Milken also provided U.S Senator Mitt Romney with $300 million in funding he needed to launch the private equity firm Bain Capital in the '80s.
Source: Politico
One of the many businessmen to get in on the junk-bond fun in the go-go '80s was President Trump, who issued almost $700 million in junk bonds with a 14% interest rate to finish construction on his Taj Mahal casino in Atlantic City, New Jersey.
Source: New York Times
Milken's '80s-era heyday coincided with the emergence of a new breed of investors on Wall Street, many of whom are still active today, such as Carl Icahn and Ronald Perelman.
At one point, Milken's compensation amounted to $500 million in one year and more than $1 billion over a four-year stretch.
Source: New York Times
Milken's compensation was brought up when then-U.S. Prosecutor Rudy Giuliani charged Milken with "racketeering, insider trading, and securities fraud." Milken pleaded guilty to six charges, and was sentenced to 10 years in prison. He served just short of two years and paid over $1 billion in penalties.
Source: LA Times
After Milken was released from prison, he was diagnosed with prostate cancer in 1993 and was told he had roughly 18 months to live.
Source: LA Times
Milken became a philanthropist after his release from prison. The Milken Family Foundation has donated more than $1 billion, and has raised $75 million for cancer research. Milken also launched and sits on the board of the Prostate Cancer Foundation.
Source: Business Insider, LA Times, Forbes
After being permanently barred from the securities industry in 1991, the SEC accused Milken of violating his lifetime ban by offering advice to Rupert Murdoch and Ronald Perelman. Milken settled the SEC complaint for $47 million in 1998; no new criminal charges were brought against him.
Source: New York Times
Milken sought a pardon from President Bill Clinton before he left office in 2001 but the move faced strong opposition from law enforcement and was, ultimately, unsuccessful.
Source: WSJ
President Trump granted Milken clemency in February 2020. A statement from the White House Press Secretary highlighted his work as a philanthropist and said he pioneered industries such as wireless communications, telecommunications, and homebuilding.
Source: Whitehouse.gov
The press release also named the people who supported his clemency, including some familiar figures from his career: Rupert Murdoch, and, most surprisingly, the man who brought the charges against him in 1989, Rudy Giuliani.
Source: Whitehouse.gov
Commenting on his pardon, Milken said, "Lori and I, who recently celebrated our 51st wedding anniversary, along with our children and grandchildren, are very grateful to the President. We look forward to many more years of pursuing our efforts in medical research, education and public health."
Source: mikemilken.com
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