Marc Rich, known for the invention of the spot oil market and pursued by the U.S. government for 17 years, died of a stroke at a hospital in Switzerland at the age of 78. The businessman, lover of Cuban cigars and fancy ties, gained fame in the 60s and 70s in the U.S., creating the base for oil spot market transactions, despite the opposition of large oil groups. Later in the ’80s Rich was charged with numerous law violations and was on the FBI’s Ten Most-Wanted Fugitives for many years.
Rich fled the U.S. to Switzerland in 1983, only a few hours before the authorities initiated criminal proceedings against him for over 50 counts of crimes including wire fraud, racketeering, trading with Iran during the economic embargo and tax evasion of over $48 million. His companies pled guilty and paid $90 in fines. The charges stem from a series of transactions that rocked the oil industry in the early 80s.
After he fled the United States, Marc Rich founded in Switzerland a company trading with oil and other mineral resources which later became the giant Glencore Xstrata, one of the largest commodity trader in the world. Marc Rich has always maintained his innocence and was pardoned by President Bill Clinton in 2001, the last day of his term at the White House.
Clinton considered that such cases should be resolved in civil courts and relied on clemency requests from some Israeli officials, including Ehud Barak, Prime Minister at the time. Clinton’s opponents have raised questions about generous donations provided by Denise Eisenberg, Rich’s wife back then, to the Democratic Party and the Library established by the President, which bears his name.
Rich died Wednesday morning in a hospital near his home located in Lucerne, Switzerland, said his spokesman, Christian Koenig. His fortune was estimated last year by Forbes at $2.5 billion. Rich will be buried Thursday in Tel Aviv.
Marc Rich was born in 1934 in Antwerp, Belgium, and began his career in the ’70s, with the metals trader Philipp Brothers. In the period 1973-1974, during the oil embargo imposed by Arab states, Rich has managed to avoid the restrictions and buy cheaper oil from Iran, which he sold for nearly double to U.S. companies during the crisis. Rich worked as a middle man for Iranian oil for over 15 years both before and after the Islamic Revolution of 1979.
Rich has diversified his business in the 80s. In 1981, he took over 20th Century Fox along with Marvin Davis. After fleeing to Switzerland, Davis sold Rich shares to media magnate Rupert Murdoch for $250 million.
Rich divorced Denise Eisenberg in 1996 after 30 years of marriage. They have two daughters, Ilona Schachter- Rich and Danielle Kilstock-Rich.
Marc Rich has set up several foundations and received honors for his involvement in charitable activities, including honorary doctorates from Bar-Ilan, Ben-Gurion and Tel Aviv universities.
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