June 26, 2013

Billionaire pardoned by Clinton dies at 78

Marc Rich's pardon in 1991 on fraud and racketeering charges ignited a political firestorm.

The Associated Press

GENEVA – He was a wheeler-dealer pardoned by another consummate dealmaker, a working-class Jewish boy who left Belgium to escape the Nazis and rose to become the billionaire "King of Commodities."

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This is a Nov. 30, 1998 file photo of financier Marc Rich shown in in Zug, central Switzerland. An associate of Marc Rich said Wednesday June 26, 2013, that the trader pardoned by President Clinton has died in Switzerland.(AP Photo/Guido Roeoesli File)

Marc Rich's connections to the rich and powerful not only made him fabulously wealthy but when he was indicted for fraud, racketeering and tax evasion on a grand scale, they helped secure him a pardon from Bill Clinton, hours before the U.S. president left office.

That triggered a political firestorm from critics who alleged Rich bought his pardon through donations that his ex-wife had made to the Democratic Party.

Rich died Wednesday of a stroke at a hospital in Lucerne, near his home for decades. He was 78, and his Israel-based spokesman Avner Azulay said he would be buried Thursday in a kibbutz in Israel.

Throughout his storied career at the pinnacle of high finance, Rich was known as a man who could deliver the big deals thanks to personal relationships he had forged with powerful figures around the world.

In a 1992 interview with NBC, Rich said that in his business, "we're not political ...That's just the philosophy of our company."

Yet Rich cultivated contacts with powerful politicians -- in the Middle East as well as the United States -- and used those ties to make billions, often when it seemed all doors were closed.

During the Arab oil embargo of the 1970s, Rich used his Middle East contacts to purchase crude oil from Iran and Iraq and made a fortune selling it to American companies.

In 1981, Rich and a partner bought 20th Century Fox and three years later he sold his interest to Rupert Murdoch for $250 million.

But in 1983, while he was in Switzerland, Rich was indicted by a U.S. federal grand jury on more than 50 counts of fraud, racketeering, trading with Iran during the U.S. Embassy hostage crisis and evading more than $48 million in income taxes. The Swiss refused to arrest or extradite him.

 

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