Jailed Speculator Boesky Gets Temporary Release
NEW YORK (AP) _ Former Wall Street stock speculator Ivan F. Boesky has been granted a temporary release from his three-year term at a California prison camp, authorities said Tuesday.
Boesky is due back at the minimum-security prison in Lompoc, Calif., around the end of the month, said Ed Wolahan, the prison’s supervisor of education. The furlough began last Thursday.
The purpose of Boesky’s furlough and his whereabouts were not known. Boesky attorney Leon Silverman declined to comment on the furlough.
Wolahan said Boesky applied for the temporary release, which was approved by the prison warden. Wolahan said inmates who request furloughs must demonstrate a need for the release, but he wouldn’t disclose Boesky’s reasons.
Tuesday marked three years since Boesky paid $100 million and agreed to plead guilty to one felony to settle charges in Wall Street’s biggest insider trading scandal.
The 52-year-old former arbitrager is eligible for release on good behavior from the Lompoc Prison Camp next April. He entered the prison, where he has been working for 11 cents an hour on a cleanup crew, in March 1988.
Boesky could be staying in New York City or on his 75-acre estate in Westchester County north of the city. The New York Post said Boesky was rumored to be staying with friends in Connecticut during his release.
A federal judge in Manhattan in April denied a request to reduce Boesky’s sentence on the grounds that information Boesky gave the government led to more than a dozen other civil or criminal cases in the United States and Britain. The judge noted Boesky’s cooperation but said his sentence was ″not unjust.″
Boesky provided information that resulted in a record $650 million plea- bargain by Drexel Burnham Lambert Inc. and the inditment of former Drexel junk-bond financier Michael Milken.
As part of his cooperation agreement with federal authorities, Boesky is expected to be the key witness at Milken’s trial, scheduled for next year.