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<http://www.washingtonpost.com/wp-dyn/articles/A38036-2001Jan23.html>

Rich's Pardon Bypassed Procedures

By Robert O'Harrow Jr. and James V. Grimaldi
Washington Post Staff Writers
Wednesday, January 24, 2001; Page A01

Lawyers with close ties to President Clinton sidestepped normal
procedures as they conducted a behind-the-scenes campaign to win
a pardon for fugitive commodities trader Marc Rich on charges
that he cheated the government out of $48 million in taxes,
according to documents and interviews.

The effort by lawyers at Quinn Gillespie & Associates and Arnold
& Porter included arranging letters of support from political
leaders such as Israeli Prime Minister Ehud Barak. The lawyers
also urged Rich's former wife � a political activist who has
donated more than $1 million to Democrats and helped raise at
least another $300,000 for Democrats � to contact Clinton
directly.

The emerging details about the successful bid to secure a pardon
for Rich, along with his former business partner, Pincus Green,
calls into question whether Clinton granted the pardon solely on
the merits of Rich's case, as Clinton and his supporters have
asserted. Rich and Green were among 140 people Clinton pardoned
on Saturday, hours before he left the White House.

Rich's attorneys had ties to the former president: Jack Quinn,
co-founder of Quinn Gillespie & Associates, was a Clinton White
House counsel and a chief of staff to Vice President Gore, and
Arnold & Porter has represented the Clinton legal defense fund
since it was created in 1998.

Current and former federal prosecutors in New York expressed
irritation that Rich � who fled the United States for Switzerland
in 1983, shortly before he was indicted � was granted clemency
without so much as showing up in court. Candidates for pardon
typically have been convicted of crimes and are serving, or have
served, their sentences.

Rich, now 65, faced several dozen charges of conspiracy, tax
evasion and racketeering relating to his activity as an oil
trader. He was also charged with trading with the enemy for
violating trade sanctions with Iran.

Rich's ex-wife, Denise Rich, a New York songwriter and Democratic
fundraiser who gave $10,000 to the president's defense fund
shortly after it was established, called Clinton and had a short
conversation with him. On Dec. 6, she also wrote a passionate
letter urging Clinton to grant her former husband a pardon.

"I support his application with all my heart," she wrote to
Clinton, adding that her former husband has "made the lives of
countless others better" through charitable work.

"You have the power in this matter not just to show mercy, but to
do justice," Rich wrote. "I believe with all my heart that this
is the right thing to do."

Quinn said Clinton was not persuaded by who was arguing the case,
and he said he doubted that the president even knew that Arnold &
Porter was the attorney of record for his defense fund. Clinton
has said he studied the matter at length, telling NBC on Sunday
that "Quinn made a strong case, and I would suggest he was right
on the merits."

Quinn said: "We didn't talk about political support. We didn't
talk about humanitarian support. We didn't talk about family
support. We talked about the indictment Mr. Giuliani brought 18
years ago was fatally, fundamentally flawed."

Rudolph W. Giuliani, now mayor of New York, was U.S. attorney for
the Southern District of New York when he brought the case
against Rich.

New York lawyer Robert Fink, speaking on Rich's behalf, said
other companies engaged in the same kind of activity as Rich but
were never charged.

"We basically told the president this case never should have been
brought," Fink said. Fink said his client also has given more
than $200 million to charitable causes since he went into exile,
with much of the money going to causes in Israel.

"They've done a lot and they've attempted to do a lot, all over
the world," Fink said.

Giuliani said he found it "very, very hard to understand"
Clinton's decision.

"He ran away and flouted American law," Giuliani said of Rich.
"Now all of a sudden he gets a pardon."

"We were totally unaware that pardons for Marc Rich and Pincus
Green were even under consideration," U.S. Attorney Mary Jo
White, a Clinton appointee, said in a statement.

Denise Rich was not available for comment. Her spokesman, Bobby
Zarem, played down her role in the effort to win a pardon. Like
Barak and others, she wrote a letter because she believes her
ex-husband deserves a break, Zarem said. But she was not the
leader of the effort.

"I really believe she had little or no involvement," Zarem said.
"At no time was there an extensive conversation between her and
the president."



Staff researcher Margot Williams contributed to this report. �
2001 The Washington Post Company

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