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Rene Rivkin

From Wikipedia, the free encyclopedia

Rene Rivkin
Born
Rene Walter Rivkin

(1944-06-06)6 June 1944
Shanghai, China
Died1 May 2005(2005-05-01) (aged 60)
Darling Point, Australia
NationalityChinese Australian
Occupation(s)Stockbroker, investor and entrepreneur
SpouseGayle Jenkins[1]
Children4 sons, 1 daughter[1]
Parent(s)Walter Rivkin, Rachel Rivkin

Rene Walter Rivkin (6 June 1944 – 1 May 2005) was a Chinese-born Australian entrepreneur, investor, investment adviser and stockbroker. He was convicted of insider trading in 2003 and sentenced to nine months of periodic detention.

Early life

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Rene Walter Rivkin was born 6 June 1944 in Shanghai in what was then Japanese-occupied China, to Russian-Jewish parents. His father, Walter, was a Georgian-born trader who had fled to China in the 1920s to escape the Bolsheviks. The elder Rivkin had also once been a champion boxer in Shanghai.[2] The family emigrated to Australia in 1951.[3] Rivkin attended the selective Sydney Boys High School in Moore Park. In accordance with his father's wishes, he studied law at the University of Sydney.[4] He went on to become the youngest-ever member of the Sydney Stock Exchange.[5]

Career

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Rivkin was a well-known stockbroker and entrepreneur, whose career spanned over 30 years. In December 1985, he was voted Business Review Weekly magazine's Stockbroker of the Year.[6] Later, he gained recognition with his publication of the Rivkin Report, in which he would advise what stocks to buy and sell, and provide market analysis. He became famous in the Australian media for his entrepreneurial flair and wealth. He was associated with leading political, media and business figures in Australia from 1982 to 1999 and became a household name.

Rivkin sold his share of stockbroking firm Rivkin James Capel after an operation to remove a tumour and the 1987 stockmarket collapse.[7] He was the chairman and chief investor in the printing plant that was destroyed in the Offset Alpine fire on 24 December 1993. This resulted in an insurance payout of $53 million.[1] Rivkin owned and part-owned many businesses, including a half share of John Singleton Advertising between 1986 and 1991 with his friend John Singleton. He subsequently founded another stockbroking firm.

Conviction for insider trading

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In April 2003, following a long-running investigation by the Australian Securities & Investments Commission (ASIC), Rivkin was found guilty of insider trading, having purchased Qantas shares after being made aware of information in relation to an impending merger of Qantas and Impulse Airlines.[8] He was charged with using confidential and market-sensitive information, having purchased—on behalf of Rivkin Investments—50,000 Qantas shares on 24 April 2001, just hours after speaking to the executive chairman of Impulse, Gerry McGowan. The trade resulted in a profit of $2,664.94.[9]

Rivkin was convicted and sentenced to nine months' periodic detention on weekends. His sentence was delayed so he could undergo urgent surgery for a meningioma. His period of custody was punctuated with time served at Long Bay Psychiatric Hospital. After serving two days of his sentence at Sydney's Silverwater Correctional Complex, Rivkin collapsed and was hospitalised.[7]

Death

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Banned for life from having a stockbroking licence following the serving of his sentence, Rivkin retired from business life. During this time, he suffered from several conditions. Since 1986, Rivkin had been receiving treatment for benign brain tumours,[1] a gangrenous gall bladder, deep vein thrombosis and bipolar disorder. During interviews Rivkin mentioned that he had contemplated suicide.[10][11] In early September 2004 he attempted suicide.[12] He later moved from his Point Piper home to the Darling Point home of his elderly mother, where he killed himself on 1 May 2005.[13]

His funeral was held at Eastern Suburbs Memorial Park where his body was cremated on 6 May 2005.[14] He was survived by his wife and five children.[11][13]

Posthumous investigation

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Following Rivkin's death, a global investigation was launched to ascertain the location of funds associated with the deceased businessman's estate. The high-profile investigation revealed Rivkin had been trading in secret through complex offshore dealings, despite being banned, and led to the Australian Taxation Office (ATO) claiming A$18 million in unpaid taxes and penalties. This forced the executors of the estate to declare it bankrupt, and a lengthy international effort to recover the proceeds of Rivkin's illegal trading ensued.[15] As of 16 April 2013, the ATO ceased the provision of legal funds for court cases in Switzerland, where a Swiss bank refused to disclose the details of Rivkin's financial records (Swiss authorities also refused to take action against the bank). An amount of $A11 million that was held in Swiss bank accounts remains outstanding upon the closure of the investigation in April 2013.[16]

References

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  1. ^ a b c d "The Damage Done". Australian Story (Interview). Interviewed by Jones, Caroline. ABC (Australian Broadcasting Corporation). 5 July 2004. Season 9, Episode 20. Retrieved 3 February 2015. In 1986 we had a daughter. I remember him visiting me in hospital with the four boys, ...
  2. ^ Chenoweth 2006: 28
  3. ^ "Family mourns Rene Rivkin". ABC News. 1 May 2005. Retrieved 2 March 2024.
  4. ^ Chenoweth 2006: 29–30
  5. ^ Daniels, Terry (20 July 2011). "Australian Stock Broker Falls Because of Insider Trading". The Stock Exchange Market. Retrieved 3 February 2015. ... his estate was placed into bankruptcy in November 2006 following his suicide in May 2005
  6. ^ Main, Andrew. Rivkin Unauthorised (2005) p.40.
  7. ^ a b Main, Andrew. Rivkin Unauthorised. 2005
  8. ^ "Rivkin 'didn't believe' Impulse, Qantas deal claim". The Sydney Morning Herald. 11 April 2003. Retrieved 2 March 2024.
  9. ^ R v Rivkin [2004] NSWCCA 7
  10. ^ "Rene Rivkin". Enough Rope (Interview). Interviewed by Denton, Andrew. Australian Broadcasting Corporation (ABC). 2 June 2003. Retrieved 3 February 2015. Oh suicide's been on my mind for 20, 30 years, and have I thought about suicide in the last week, yes.
  11. ^ a b "Rene Rivkin". Enough Rope (Interview). Interviewed by Denton, Andrew. Australian Broadcasting Corporation. 5 May 2003. Retrieved 3 February 2015. If I don't take Prozac, I just get dramatically depressed. I've had nervous breakdowns. I've had periods where I cried for six months...nonstop.
  12. ^ Caldwell, Alison (3 September 2004). "Rene Rivkin recovering from suicide attempt". PM. ABC Radio. Retrieved 3 February 2015. Rene Rivkin, will spend this evening as an inpatient at Sydney's St Vincent's Hospital after his attempted suicide last night.
  13. ^ a b McClymont, Kate; Baker, Jordan (2 May 2005). "Sad end for Rene Rivkin". Sydney Morning Herald. Retrieved 3 March 2024. Yesterday, like his father before him, Rivkin took his own life ...
  14. ^ "Rene Rivkin" Obituary, Death & Funeral Notices, The Sydney Morning Herald (5 May 2005)
  15. ^ "The Rivkin Story". CRS Warner Kugel. 28 April 2013. Archived from the original on 23 August 2013. Retrieved 7 May 2018.
  16. ^ "Rene Rivkin's millions lost forever". Business Spectator. Business Spectator. 16 April 2013. Archived from the original on 10 April 2016. Retrieved 11 July 2018.

Further reading

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  • Main, Andrew (2005) Rivkin, Unauthorised: The Meteoric Rise and Tragic Fall of an Unorthodox Money Man, HarperCollins, Sydney, ISBN 0-7322-8089-3
  • Chenoweth, Neil (2006) Packer's Lunch: A Rollicking Tale of Swiss Bank Accounts and Money-Making Adventurers in the Roaring '90s, Allen & Unwin, ISBN 978-1-74114-546-5.
  • Littlewood, Nigel (1999) Rivkin's Rules, Information Australia, Melbourne, ISBN 1-86350-264-5.
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