Marc Rich

Marc Rich was a prominent Belgian-American commodities trader and financier. He founded the massive company known today as Glencore. Rich was a central figure in the global trade of raw materials like metals and oil. His career changed how international markets function through new financial methods. However, his life was also defined by legal battles and a controversial presidential pardon.

Rich developed a new way to conduct large-scale business transactions. In the early 1970s, he expanded the spot market for crude oil. A spot market is a place where goods are traded for immediate delivery. Before this, large oil companies mostly used long-term contracts for future purchases. Rich realized that traders could move materials using less capital and fewer assets. He used bank finance, a method called leverage, to back his deals. This leveraged business model became the standard template for modern commodity traders.

His business reached many different types of nations and political systems. Rich worked with various regimes, including some that were under international trade embargoes. An embargo is an official ban on trade with a specific country. He served clients in Cuba, Libya, and South Africa. He also did business with the Sandinistas in Nicaragua and leaders in Angola and Chile. Rich viewed himself strictly as a businessman rather than a politician. He believed he was simply providing a service to those who wanted to buy or sell.

One of his most significant business activities involved the nation of Iran. After the Iranian Revolution in 1979, the United States placed an embargo on Iran. Rich used his connections to buy oil from Iran despite these U.S. sanctions. He worked with a secret business partner named Asadollah Asgaroladi to bypass these rules. Iran became his most important supplier of crude oil for over 15 years. Rich also used a secret pipeline to sell this Iranian oil to Israel. He reportedly helped Israeli intelligence agents, known as Mossad, gain contacts within Iran.

In 1983, the United States government brought serious legal charges against Rich. Federal Prosecutor Rudolph Giuliani filed an indictment involving 65 criminal counts. These charges included tax evasion, wire fraud, racketeering, and violating trade sanctions. If convicted, Rich could have faced a prison sentence of more than 300 years. To avoid arrest, Rich fled to Switzerland and never returned to the United States. He remained on the FBI's Ten Most-Wanted Fugitives List for many years. He even stayed away from the U.S. during his daughter's funeral in 1996.

At the time of his legal troubles, Rich had immense wealth. His estimated net worth was approximately US$2.5 billion. His business activities also involved major assets like the 20th Century Fox film studio. When his assets were frozen, his partner Marvin Davis bought his share. Davis later sold that interest to Rupert Murdoch for $232 million in 1984. Rich's business connections also extended into complex real estate and various international markets.

On January 20, 2001, President Bill Clinton granted Rich a presidential pardon. This happened during the final hours of Clinton's term in office. The decision was highly controversial and led to many investigations. Critics suggested the pardon was linked to large political donations made by Rich's ex-wife, Denise Rich. She had donated over $1 million to the Democratic Party. Other leaders argued the pardon was requested by Israeli officials and Jewish community leaders. President Clinton later expressed regret, stating the decision damaged his reputation.