march richmond

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Who is Marc Rich and What Did He Do?

Marc Rich (born Marcell David Reich) was a controversial international commodities trader. He was known for founding the commodities trading firm Marc Rich & Co. AG, later known as Glencore, and for being indicted on charges of tax evasion and illegal oil trading with Iran during the Iran hostage crisis.

His legacy remains complex, encompassing both significant contributions to global commodities markets and serious legal challenges.

Early Life and Career

Born in Belgium, Marc Rich and his family fled to the United States during World War II to escape the Nazis. He started his career at Philipp Brothers (Phibro), a major commodities trading firm, where he quickly rose through the ranks. He developed a reputation for his innovative trading strategies and his willingness to take risks. In the early 1970s, Rich became disillusioned with Phibro’s bureaucracy and decided to venture out on his own.

Founding Marc Rich & Co. AG (Glencore)

In 1974, Rich, along with partner Pincus Green, founded Marc Rich & Co. AG in Zug, Switzerland. The company quickly became a dominant player in the global commodities market, specializing in oil, metals, and minerals. Rich pioneered the spot market for oil, breaking the control of the major oil companies and allowing for more flexible and efficient trading. His firm was also known for operating in countries often avoided by other Western businesses, like Cuba, Angola, and South Africa during apartheid.

Legal Troubles and Indictment

In 1983, Marc Rich and his company were indicted in the United States on charges of tax evasion, wire fraud, and violating the embargo on trading with Iran. The indictment stemmed from allegations that Rich had illegally profited from oil sales to Iran during the Iran hostage crisis and had evaded taxes on those profits by using a complex network of offshore companies. Rich fled the United States and lived in exile in Switzerland for the rest of his life. He remained on the FBI’s Most Wanted list for years.

You can read more about his indictment on Wikipedia’s Marc Rich page.

Controversy and Presidential Pardon

In 2001, on his last day in office, President Bill Clinton controversially granted Marc Rich a full presidential pardon. The pardon sparked widespread criticism and accusations of political influence, as Rich’s ex-wife, Denise Rich, had made substantial donations to the Democratic Party and the Clinton library. The circumstances surrounding the pardon remained a subject of intense scrutiny and debate for many years.

Legacy

Marc Rich’s legacy is complex and controversial. He is credited with revolutionizing the commodities trading industry and creating a global trading powerhouse that is now known as Glencore. However, he is also remembered for his legal troubles and the controversial pardon he received. His story highlights the ethical dilemmas and risks inherent in the world of international commodities trading.

Frequently Asked Questions

Why was Marc Rich Pardoned?

President Bill Clinton pardoned Marc Rich on his last day in office. The decision was controversial due to donations from Rich’s ex-wife and questions of political influence.

What charges did Marc Rich face?

Marc Rich was indicted on charges of tax evasion, wire fraud, and violating the embargo on trading with Iran.

Where did Marc Rich live after fleeing the US?

Marc Rich lived in exile in Switzerland for the rest of his life.

What is Glencore’s connection to Marc Rich?

Glencore was originally founded as Marc Rich & Co. AG by Marc Rich. He is considered the founder of this multi-national company.

What did Marc Rich do during the Iran hostage crisis?

Marc Rich was accused of illegally profiting from oil sales to Iran during the Iran hostage crisis, violating U.S. sanctions.

Summary

Marc Rich was a pivotal yet controversial figure in international commodities trading. He founded Marc Rich & Co. AG, which later became Glencore, revolutionizing the industry with innovative strategies. However, he faced serious legal challenges, including indictment for tax evasion and illegal trading with Iran, leading to his exile and a controversial presidential pardon. His story reflects both the transformative potential and ethical complexities of global commodities markets.

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