Michael Milken

Michael Milken
Milken in 2014
Born
Michael Robert Milken

(1946-07-04) July 4, 1946 (age 78)
Encino, California, U.S.
EducationUniversity of California, Berkeley (BS)
University of Pennsylvania (MBA)
Occupation(s)Businessman, financier
Known forDeveloping the High-yield bond market, Indictment for securities fraud
Criminal chargesSecurities and reporting violations (1989)
Criminal penaltyServed 22 months in prison
$600 million fine
Criminal statusReleased
Pardoned (February 18, 2020)[1]
Spouse
Lori Hackel
​
(m. 1968)​
Children3
RelativesLowell Milken (brother)
Websitewww.mikemilken.com

Michael Robert Milken (born July 4, 1946) is an American financier. He is known for his role in the development of the market for high-yield bonds ("junk bonds"),[2] and his conviction and sentence following a guilty plea on felony charges for violating U.S. securities laws.[3] Milken's compensation while head of the high-yield bond department at Drexel Burnham Lambert in the late 1980s exceeded $1 billion over a four-year period, a record for U.S. income at that time.[4] With a net worth of US$6 billion as of 2022, he is among the richest people in the world.[5][6]

Milken was indicted for racketeering and securities fraud in 1989 in an insider trading investigation. In a plea bargain, he pleaded guilty to securities and reporting violations but not to racketeering or insider trading. Milken was sentenced to ten years in prison, fined $600 million (although his personal website claims $200 million)[7] and permanently barred from the securities industry by the U.S. Securities and Exchange Commission. His sentence was later reduced to two years for cooperating with testimony against his former colleagues and for good behavior.[8] Milken was pardoned by President Donald Trump on February 18, 2020.

Since his release from prison, he has become known for his charitable donations.[9] He is co-founder of the Milken Family Foundation, chairman of the Milken Institute, and founder of medical philanthropies funding research into melanoma, cancer, and other life-threatening diseases.[10] A prostate cancer survivor, Milken has devoted significant resources to research on the disease.[11]

  1. ^ "Trump grants clemency to former NYPD commissioner Bernie Kerik, financier Michael Milken". The Washington Post. Archived from the original on February 20, 2020. Retrieved February 18, 2020.
  2. ^ "Michael Milken's Guilt". The New York Times. April 26, 1990. Archived from the original on February 4, 2017. Retrieved February 11, 2017.
  3. ^ The Associated Press (February 22, 1991). "Milken Assigned to Bay Area Prison". The New York Times. Archived from the original on September 11, 2018. Retrieved September 10, 2018.
  4. ^ Eichenwald, Kurt (April 3, 1989). "Wages Even Wall St. Can't Stomach". The New York Times. Archived from the original on February 4, 2017. Retrieved February 11, 2017. Surely no one in American history has earned anywhere near as much in a year as Mr. Milken.
  5. ^ "Profile: Michael Milken". Forbes. Archived from the original on February 27, 2020. Retrieved November 11, 2022.
  6. ^ Cite error: The named reference HC was invoked but never defined (see the help page).
  7. ^ "Michael Milken - Philanthropist, Financier, Medical Research Innovator & Public Health Advocate".
  8. ^ "Milken's Sentence Reduced by Judge; 7 Months Are Left". The New York Times. August 6, 1992. Archived from the original on February 4, 2017. Retrieved February 11, 2017.
  9. ^ Jacob Berkman, "Zuckerberg among nine new Jewish individuals and families to take the Giving Pledge". JTA.org. December 10, 2012. Archived from the original on March 11, 2013. Retrieved July 2, 2019.
  10. ^ Daniels, Cora (November 29, 2004). "The Man Who Changed Medicine". Fortune. Archived from the original on February 27, 2009. Retrieved July 28, 2009.
  11. ^ LAURA LANDRO (May 3, 2010). "Donor of the Day: Gift Funds Melanoma Research". The Wall Street Journal. Archived from the original on April 25, 2018. Retrieved February 15, 2013.