American financier, Michael Milken, has been called many things, from the junk bond king to a criminal and a fraud. But he has also been credited as the most important person to alter the financial markets since JP Morgan, with some even estimating that he has created more wealth for shareholders than any financier in modern history. Milken is perhaps best known for his role in the development of the market for high-yield bonds, also referred to as junk bonds, and his conviction and sentence following a guilty plea on felony charges for violating US securities laws in 1990. Joining us today to discuss this important figure is Richard Sandler, Executive Director of the Milken Family Foundation, Director of the Milken Institute, and a personal lawyer to Michael Milken during his criminal investigation. We talk with Richard about his book, Witness to a Prosecution: The Myth of Michael Milken, and why he argues that Milken is one of the most misunderstood public figures of all time. Richard shares his insights on key events during this era, Michael’s true character, and the convoluted and unjust processes that led to his conviction. Tune in to hear the full story of Michael Milken from his personal friend and lawyer, Richard Sandler!

Key Points From This Episode:

• Some background on Richard Sandler and his legal career.
• How he came to work with Michael Milken at Drexel Burnham Lambert.
• Richard’s long relationship with Milken, beginning in childhood.
• His response to those who question his objectivity regarding Milken.
• A breakdown of high-yield bonds, also known as junk bonds, and how they work.
• Milken’s early interest in high-yield bonds and why he believed in their potential value.
• Why Drexel allocated capital to him to invest in new securities.
• Unpacking the disruption that Milken caused and how this upset Wall Street.
• An overview of Ivan Boesky, his role on Wall Street, and his conviction for insider trading.
• What it was like when Milken was formally charged.
• The unusual amount of publicity that this case received and the implications of this.
• A breakdown of the charges against Milken, the proceedings, and why Milken pled guilty.
• Why the criminal process is not a level playing field, no matter what your resources are.
• The deeply disruptive impact the case had on Milken and his young family.
• Key flaws in the prosecutorial system and assumptions of guilt.
• Richard’s respect for Milken’s lawyers and his take on punishment for non-violent crimes.
• What compelled him to write Witness to a Prosecution: The Myth of Michael Milken.
• Reflecting on Milken’s true character as a good and caring individual.
• What Milken is doing today and his many philanthropic endeavors.

Links Mentioned in Today’s Episode:

Richard Sandler

Witness to a Prosecution: The Myth of Michael Milken

Michael Milken

Three Felonies A Day: How the Feds Target the Innocent

The Milken Family Foundation

Fordham University School of Law Corporate Law Center