by BAR editor and senior columnist Margaret Kimberley
"Holder's defense was that late pardon requests were handled directly by the White House."
Eric Holder is Barack Obama's choice to serve as Attorney General in the new administration. Holder was an adviser in the Obama campaign who oversaw the vetting process for potential running mates. He has a long history of government service, first as a Ronald Reagan appointed federal judge, and then as United States Attorney for the District of Columbia in Bill Clinton's administration. Clinton later appointed Holder to the office of Deputy Attorney General.
Holder will be facing a Senate confirmation process for the third time in his life. His confirmation would be uneventful were it not for his involvement in one incident that took place at the very end of the Clinton administration.
On January 20, 2001, as he was packing his bags and heading out the White House door, Bill Clinton issued a presidential pardon for Marc Rich. Rich is a commodities trader usually described as a "financier." The words thief or crook are far more accurate. Rich has been a fugitive from since 1983. He fled the country after a tax evasion indictment related to financial dealings with the Iranian and South African governments when it was illegal for Americans to do business with either country.
"Holder should not be blamed too much."
Holder did nothing to stop the Rich pardon, a pardon that was both without merit and illegal because Rich had renounced his American citizenship. Holder should not be blamed too much, because the forces that sought the pardon were far bigger than he was. Holder could not have taken them on even if he had been pre-disposed to do so.
Marc Rich was a billionaire when his legal troubles began and became even wealthier when he fled. Even while on the lam he put his money to very good use. He had enough informants in enough places to insure that he could evade capture and extradition to the United States. In the most famous Rich escape, federal agents awaited his private jet in Finland, which mysteriously made a last minute U-turn and took Rich out of harms way.
Rich was a busy man, always planning to return to the United States. He set up a charitable foundation in Jerusalem, aptly named the Marc Rich Foundation. Its director is Avner Azulay, a former member of Israel's intelligence agency, the Mossad. The Marc Rich Foundation has distributed more than $135 million around the world.
Rich wanted to return to the United States with an assurance that he wouldn't go to jail. United States Attorneys, including Rudolph Giuliani, told him it wasn't going to happen. No matter. Wealthy, powerful people never take the word no for an answer. At the end of the Clinton administration, Rich earnestly began an effort to secure a presidential pardon.
Rich retained the services of Washington attorney Jack Quinn, a former Clinton aide. He also began lobbying Israeli politicians such as Ehud Barak, Ehud Olmert and Shimon Peres to make the case to Clinton. Clinton was anxious to revive the Oslo accords and secure an Israeli/Palestinian peace deal before he left office. The eleventh hour pardon must have meant that he had an expectation of movement by the Israelis even in the incoming Bush administration if Rich was a free and happy man.
"Rich had enough informants in enough places to insure that he could evade capture and extradition."
The outcry surrounding the Rich affair had nothing to do with the truly scandalous aspects of the case. Republicans used the story to delegitimize the outgoing but still popular Democrat. The media followed suit, ignoring their duty to investigate the salient issues in favor of digging up tabloid dirt on Rich's ex-wife Denise, who was a Democratic donor and fund raiser.
Rich used his money not only to get Israeli politicians, but organizations such as the Anti Defamation League to pressure Clinton. The ADL was a beneficiary of the Rich Foundation's largesse, to the tune of $250,000. ADL's director, Abraham Foxman, later approached Denise Rich and urged her to speak to Clinton about a pardon for her ex-husband.
While the wheeling and dealing went on, Eric Holder said little. His defense was that late pardon requests were handled directly by the White House, not the Justice Department. When he testified to Congress he said, "I wish that I had assured that the Department of Justice was more fully informed and involved in this pardon process." At the time of the pardon he declared himself to be, "...neutral leaning towards favorable if there are positive foreign policy implications that I don't know about."
"The eleventh hour pardon must have meant that Holder had an expectation of movement by the Israelis to revive the Oslo accords."
Holder was being more than a little disingenuous with that statement. He knew quite well that there was an enormous foreign policy implication, namely doing what the Israeli government wanted.
Some Republican Senators are making noises about grilling Holder, but it won't amount to much. If they really want to look into the Rich pardon, they will have to ask Israeli prime ministers and Mossad agents to testify too.
Marc Rich didn't get what he wanted. His pardon ended up being worthless and he will probably die as a fugitive. There may be a little bit of justice after all.
Margaret Kimberley's Freedom Rider column appears weekly in BAR. Ms. Kimberley lives in New York City, and can be reached via e-Mail at Margaret.Kimberley(at)BlackAgandaReport.Com. Ms. Kimberley maintains an edifying and frequently updated blog at freedomrider.blogspot.com.
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