; December 18, 1934 June 26, 2013) was an internationalhedge fundmanager, financier and businessman.He founded the commodities companyGlencore, and was later indicted in the United States on federal charges oftax evasionand making oil deals with Iran during the Iran hostage crisis. He was in Switzerland at the time of the indictment and never returned to the United States.He received a widely criticisedpresidential pardonfromon January 20, 2001,Clintons last day in office.
Rich was born in 1934 to a Jewish family inAntwerp, Belgium.56His parents were working-classcitation neededJews who emigrated with their son to the United States in 19417to escape theNazis.5His father opened a jewelry store inKansas City, Missouri, then moved the family to Queens, New York City in 1950, where he started a company that importedto make burlap bags,8and later started a business trading agricultural products and helped found the American Bolivian Bank.8Rich attended high school at theRhodes Preparatory SchoolinManhattan. He later attendedNew York University, but dropped out after one semester to go work forPhilipp Brothers(now known asPhibro LLC) in 1954 where he worked withPincus Green.
At Philipp Brothers, he eventually became a dealer inmetals, learning about the international raw materials markets and commercial trading with poor,third-worldnations. He helped run the companys operations in Cuba, Bolivia, and Spain.8In 1974 he and co-workerPincus Greenset up their own company in Switzerland, Marc Rich + Co. AG, which would later become Glencore Xstrata Plc.89Nicknamedthe King of Oilby his business partners, Rich has been said to have expanded thespot marketfor crude oil in the early 1970s, drawing business away from the larger established oil companies that had relied on traditional long-term contracts for future purchases.3As Andrew Hill of theFinancial Timesput it, Richs key insight was that oil and other raw materials could be traded with less capital, and fewer assets, than the big oil producers thought, if backed by bank finance. It was this highly leveraged business model that became the template for modern traders, including Trafigura, Vitol, and Glencore.10
Histutelageunder Philipp Brothers afforded Rich the opportunity to develop relationships with various dictatorial rgimes and embargoed nations. Rich would later tell biographerDaniel Ammannthat he had made his most important and most profitable business deals by violating international tradeembargoesand doing business with theapartheidregime of South Africa.11He also countedFidel Castros Cuba,Marxist Angola, the NicaraguanSandinistasMuammar Gaddafis Libya,Nicolae Ceaușescus Romania, andAugusto Pinochets Chile among the clients he serviced.912According to Ammann, he had no regrets whatsoever…. He used to say I deliver a service. People want to sell oil to me and other people wanted to buy oil from me. I am a businessman, not a politician.11
Later, following the overthrow ofMohammad Reza Pahlavi, theShah of Iran, during theIranian Revolutionin 1979, Rich used his special relationship withAyatollah Khomeini, the leader of the revolution, to buy oil from Iran despite the American embargo. Iran would become Richs most important supplier of crude oil for more than 15 years. Rich sold Iranian oil to Israel through a secret pipeline.131415Due to his good relationship with Iran andAyatollah Khomeini, Rich helped giveMossads agents contacts in Iran.16
His real estate company, Marc Rich Real Estate GmbH, was involved in large developer projects (e.g., inPrague, Czech Republic).17Rich andMarvin Davisbought20th Century Foxin 1981. Due to the indictment filed against Rich for violating U.S. trade sanctions against his deals withIranwhile Rich was living in Switzerland, Rich arranged for Davis to sell Richs interest in20th Century FoxtoRupert Murdochfor $250 million during March 1984.18
Business Insiderreported Rich had anet worthof US$2.5 billion as of 2016.19
In 1983 Rich and partnerPincus Greenwere indicted on 65 criminal counts, including income tax evasion,wire fraudracketeering, and trading with Iran during the oil embargo (at a time when Iranian revolutionaries were stillholding American citizens hostage).820The charges would have led to a sentence of more than 300 years in prison had Rich been convicted on all counts.20The indictment was filed by then-U.S. Federal Prosecutor(and future mayor of New York City)Rudolph Giuliani. At the time it was the biggest tax evasion case in U.S. history.21
Learning of the plans for the indictment, Rich fled9to Switzerland and, always insisting that he was not guilty, never returned to the U.S. to answer the charges.Notes 1Richs companies eventually pleaded guilty to 35 counts of tax evasion and paid $90 million in fines,8although Rich himself remained on theFederal Bureau of InvestigationTen Most-Wanted Fugitives Listfor many years,23narrowly evading capture in Britain, Germany, Finland, and Jamaica.24Fearing arrest, he did not even return to the United States to attend his daughters funeral in 1996.25
On January 20, 2001, hours before leaving office, U.S. President Bill Clinton granted Rich a controversialpresidential pardon. Several of Clintons strongest supporters distanced themselves from the decision.26Former PresidentJimmy Carter, a fellow Democrat, said, I dont think there is any doubt that some of the factors in his pardon were attributable to his large gifts. In my opinion, that was disgraceful.27Clinton himself later expressed regret for issuing the pardon, saying that it wasnt worth the damage to my reputation.9
Clintons critics alleged that Richs pardon had been bought, as Denise Rich had given more than $1 million28to Clintons political party (the Democratic Party), including more than $100,000 to the Senate campaign of the presidents wife,Hillary Rodham Clinton, and $450,000 to theClinton Libraryfoundation during Clintons time in office.24
Clinton also cited clemency pleas he had received from Israeli government officials, including then-Prime MinisterEhud Barak. Rich had made substantial donations to Israelicharitable foundationsover the years, and many senior Israeli officials, such asShimon PeresandEhud Olmert, argued on his behalf behind the scenes.29Many leading figures of the Jewish world such asAbraham Foxman, the head of theAnti-Defamation League(ADL), whose organization had received over $250,000 from Rich over the years also wrote to President Clinton for Richs pardon.3031Among other leading Jewish leaders writing to Clinton wereShlomo Ben-Ami, Israels former foreign minister;Michael Steinhardt, a philanthropist and CEO of Steinhardt Associates; and RabbiIrving Greenberg, chairman of the United States Holocaust Memorial Council, which oversees the U.S. Holocaust Memorial Museum. Although none of the figures other than Foxman were investigated for their support of Richs pardon.31Clinton later claimed on more than one occasion that Jewish pressure contributed to his decision to pardon Rich. He stated in an interview withNew York Timesthat Israeli officials of both major political parties and leaders of Jewish communities in America and Europe urged the pardon of Mr. Rich.32He made similar comments off camera tothat Israel did influence me profoundly.32
Speculation about another rationale for Richs pardon involved his alleged involvement with the Israeli intelligence community.3334Rich reluctantly acknowledged in interviews with his biographer, Daniel Ammann, that he had assisted theMossad, Israels intelligence service,513a claim that Ammann said was confirmed by a former Israeli intelligence officer.12According to Ammann, Rich had helped finance the Mossads operations and had supplied Israel with strategic amounts of Iranian oil through a secret oil pipeline.5The aide to Rich who had persuaded Denise Rich to personally ask President Clinton to review Richs pardon request was a former chief of the Mossad, Avner Azulay.2535Another former Mossad chief,Shabtai Shavit, had also urged Clinton to pardon Rich,36who he said had routinely allowed intelligence agents to use his offices around the world.20
Federal ProsecutorMary Jo Whitewas appointed byto investigate Clintons last-minute pardon of Rich.37She stepped down before the investigation was finished and was replaced byJames Comey, who was critical of Clintons pardons and of then-Deputy Attorney GeneralEric Holders pardon recommendation.38Richs lawyer,Jack Quinn, had previously been ClintonsWhite House Counseland chief of staff to Clintons Vice President,Al Gore, and had had a close relationship with Holder.25According to Quinn, Holder had advised that standard procedures be bypassed and the pardon petition be submitted directly to the White House.39Notes 2Congressional investigations were also launched. Clintons top advisors, Chief of StaffJohn Podesta, White House CounselBeth Nolan, and advisorBruce Lindsey, testified that nearly all of the White House staff advising the president on the pardon request had urged Clinton to not grant Rich a pardon.35Federal investigators ultimately found no evidence of criminal activity.36
As a condition of the pardon, it was made clear that Rich would drop all procedural defenses against any civil actions brought against him by the United States upon his return there. That condition was consistent with the position that his alleged wrongdoing warranted only civil penalties, not criminal punishment. Rich never returned to the United States.9
In a February 18, 2001 op-ed essay inThe New York Times, Clinton (by then out of office) explained why he had pardoned Rich, noting that U.S. tax professorsBernard Wolfmanof theHarvard Law SchoolandMartin GinsburgofGeorgetown University Law Centerhad concluded that no crime had been committed, and that Richs companies tax-reporting position had been reasonable.22In the same essay, Clinton listedLewis Scooter Libbyas one of three distinguishedRepublicanlawyers who supported a pardon for Rich. (Libby himself later received a presidential commutation from President George W. Bush, and later a presidential pardon from PresidentDonald Trumpfor his involvement in thePlame affair.) During Congressional hearings after Richs pardon, Libby, who had represented Rich from 1985 until the spring of 2000, denied that Rich had violated the tax laws but criticized him for trading with Iran at a time when that country was holding U.S. hostages.41
A New York Times editorial called the Marc Rich pardon a shocking abuse of presidential power.42
On November 1, 2016, the FBI released documents related to the pardon, stating it was an FOIA release.43
In 5 November 2017, theParadise Papers, a set of confidentialelectronic documentsrelating tooffshore investment, revealed thatApplebyhad worked for Rich and Glencore on major projects in the past, even after his indictment in 1983.4445
Glencore International AGwas a corporate successor to Marc Rich + Co AG. At the end of 1993, Rich lost control of the company when a disastrous attempt to corner the world zinc market led to a number of the Rich Boys46insisting he give up his majority stake. After a management buyout, Marc Rich + Co was renamed Glencore.Ivan Glasenbergwas appointed chief executive in 2002. Glencore merged in 2013 withXstratato becomeGlencore Xstrata,47headquartered inBaar, Switzerland. Until the 2011 Glencore IPO,48and the Glencore/Xstrata merger of 2013,49Glencore was run as a private partnership. Following the merger, Glencores website says that the company was founded in 1974 as Marc Rich + Co AG, and also refers to the management buyout from Marc Rich in 199350
Trafigura Beheer BV, based in Netherlands is another corporate successor, though not ever owned or directly managed by Rich. It was created in March 1993, the name acquired from an existing company registered in Amsterdam. Its founding partners, alongside Claude Dauphine, being former Marc Rich top brass. Trafigura AG is now the main office, based in Geneva, Switzerland.51
Although Rich believed that he had relinquished his United States citizenship when he became a citizen of Spain, an appeals court ruled in 1991 that, for purposes of U.S. law, Rich remained a citizen and therefore was still subject to U.S. income taxes.52He also held Belgian, Bolivian,53Israeli, and Spanish passports.52
Rich was a strong supporter of Israel throughout his life, having donated around $150 million to institutions such as theIsrael MuseumTel Aviv Museum, research centers, theaters, as well as numerous other documented causes over the years.54
In 1985, Rich helped with the compensation to the families of the victims of Israelis from Ras Burka in the Sinai. He has contributed tens of millions of dollars for the absorption of Jewish immigrants fromEthiopiaandRussia, he has contributed to Project Discovery, he has founded the museum wing for Israeli and international art in the name of his daughter Gabriela, who had died, he has contributed to the establishment of the new building of the Tel Aviv Cinematheque called Marc Rich Israeli Cinema Center, and the establishment of the main library atIDC Herzliya University,55which bears his name. Rich was also an advocate for coexistence between Israelis and the Palestinians by establishing health and education programs in theWest BankandGaza, as well as by fulfilling his commitment to making Presidents Conference contributions each year. Rich has also contributed to the Center for Sloan-Catherine, The Medical Research Center atYale University, The Rabin Medical Center,56and the center of the Dana Farber Cancer Institute.57
Rich created the Rich Foundation, one of the largest funds operating in Israel, which is managed by Avner Azulay (who wrote to Clinton for his pardon), which has invested more than $135 million in the last two decades5859The fund was established by Avner Azulay, with help from Richs ex-wife – Denise and his business partners, Elka Acle andPincus Green. The Fund has contributed over the years for culture, education, and various Israeli health program which honor Humanities and Social Sciences atTel Aviv University, Israel Philharmonic Orchestra, the Cinematheque in Tel Aviv Cameri theaters, the city ofBeersheba, IDC Herzliya,60Shaare Zedek Medical Center, Beit Berl, Tel Aviv Museum and the Israel Museum. Rich also helped with the construction of the Bioengineering building atBar Ilan University57
In May 2007 Rich received anhonorary doctoratefromBar Ilan UniversityRamat Gan, Israel, in recognition of his contribution to Israel and to the universitys research programs.6162He received the same honor fromBen-Gurion University of the NegevBeersheba, Israel, on 18 November 2007.63TheChaim Sheba Medical Center at Tel Hashomerin suburbanTel Aviv, Israel, honored Rich with the Sheba Humanitarian Award 2008. Former recipients of this award include actorMichael Douglas, actressElizabeth Taylor, and former U.S. PresidentGerald R. Ford.citation needed
Rich marriedDenise Eisenberg, a songwriter and heir to aNew Englandshoe manufacturing fortune, in 1966. They had three children, one of whom, Gabrielle Rich Aouad, died at age 27 of leukemia in 1996.64The couple divorced in 1996; she continued to use the name Denise Rich. Six months later he married Gisela Rossi, although that marriage also ended in divorce, in 2005.3
After spending several years inZug, Switzerland, Rich moved toMeggen, a city in theCanton of Lucerne, Switzerland, residing in a house calledLa villa rose(the pink villa) on the shores of SwissLake Lucerne, where he zealously guarded his privacy. Rich owned property in the ski resort ofSt. Moritz, Switzerland, and inMarbella, Spain. He was an art collector and friends said he lived surrounded byRenoirsMonetsandPicassos.65
Rich died of astrokeon June 26, 2013, at a Lucerne hospital. He was 78 and is survived by two daughters, Ilona Schachter-Rich and Danielle Kilstock Rich. He was buried in Israel.20
In 1989 theU.S. Justice Departmentceased using statutes of theRacketeer Influenced and Corrupt Organizations Act(otherwise known as the RICO Act) in tax cases such as the one in which Rich and Green were indicted, and began relying instead oncivillawsuits.
Holder, however, during his Senate confirmation hearing to become Attorney General in 2009, denied that he had attempted to circumvent the standard procedures for consideration of presidential pardons.
Holder did say that he had made mistakes and made assumptions that turned out not to be true while managing the pardon request.
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למרות פסק הדין, המדינה כבר מתכוננת להרחיב את ההפרדה המגדרית, כתבי מוסף הארץ בוחרים את השיר הישראלי השנוא ביותר, לא ייאמן שחי טורטל והגרוש הדיכאוני והמוזנח הם אותו שחקן, עיתונאית בכירה יורקת לבאר וחושפת את האינטרסים מאחורי התקשורת הישראלית, נתניהו מכניס את מרכיבי הקדמת הבחירות לסיר, רק צריך להדליק את האש, היום שבו תלו את בן גוריון: מה היה קורה אם המנדט הבריטי לא היה מסתיים?, הצעת מוזס לנתניהו שווה יותר ממיליון דולר במזוודה. ראש הממשלה צריך לפרוש מתפקידו לאלתר
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Infobox person using certain parameters when dead
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Articles with unsourced statements from April 2009
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