A billionaire commodities trader who founded a multinational mining corporation, known for his controversial business dealings and presidential pardon for tax evasion.
Marc Rich, the international commodities trader, financier, and businessman, is renowned for founding the behemoth commodities company Glencore and amassing immense wealth through his unparalleled acumen in the global raw materials markets. His name, however, is equally synonymous with controversy, having been indicted on federal charges of tax evasion, wire fraud, racketeering, and making oil deals with Iran during the Iran hostage crisis.
Born Marcell David Reich on December 18, 1934, in Antwerp, Belgium, to a Jewish family, Rich's life took a dramatic turn when his parents emigrated to the United States in 1941 to escape the Nazi occupation. Settling in Queens, New York City, Rich's father established a business importing Bengali jute to manufacture burlap bags, which later expanded into agricultural products and banking.
Rich attended Rhodes Preparatory School and later enrolled at New York University, but dropped out after one semester to pursue a career in commodities trading. He joined Philipp Brothers (now Phibro LLC) in 1954, where he worked alongside Pincus Green, and eventually became a dealer in metals, developing expertise in international raw materials markets and commercial trading with developing nations. His experiences in Cuba, Bolivia, and Spain further honed his skills, paving the way for his future success.
In 1974, Rich and Green established Marc Rich & Co. AG in Switzerland, a venture that would eventually evolve into Glencore Xstrata Plc. This strategic move enabled Rich to expand the spot market for crude oil in the early 1970s, earning him the moniker "King of Oil" among his business associates. His company's operations soon spanned the globe, dealing in commodities such as oil, grains, and metals.
Rich's business dealings, however, were not without controversy. In 1983, he was indicted on federal charges of tax evasion, wire fraud, racketeering, and making oil deals with Iran during the Iran hostage crisis. He fled to Switzerland, where he remained a fugitive until his pardon by President Bill Clinton in 2001, widely criticized for its perceived connection to Denise Rich's large donations to the Democratic Party.
Apart from his business endeavors, Rich's personal life was marked by his marriage to Denise Rich, a songwriter and philanthropist. He was known for his charitable contributions, including support for the arts and various health causes. Rich passed away on June 26, 2013, leaving behind a legacy of unparalleled success in the commodities trade, as well as a complex web of controversy and intrigue.
Love him or loathe him, Marc Rich's influence on the global commodities trade is undeniable. His company, Glencore, remains a dominant force in the industry, shaping the course of international trade and commerce. While his life was marred by controversy, Rich's entrepreneurial spirit and business acumen continue to inspire and intrigue, offering a fascinating glimpse into the world of high-stakes commodities trading.
