-Caveat Lector-

<http://www.dallasnews.com/national/296416_denise_25na.html>

Socialite played a crucial part in Rich pardon

Fallout was a blow to ex-wife

02/25/2001
By Josh Getlin / Los Angeles Times


NEW YORK ­ For weeks she's been portrayed as a high-flying
Manhattan hostess, a song-writing society maven who played only a
secondary role in the controversial pardon of her ex-husband,
fugitive financier Marc Rich.

But Denise Rich made crucial decisions in the elaborate lobbying
campaign, contacting President Bill Clinton on three occasions
and vetoing a plan to seek support from Hillary Rodham Clinton,
according to memoranda and e-mails generated by her ex-husband's
legal team.

Ms. Rich's involvement in the pardon is clearly greater than
investigators originally thought, and they are now trying to
determine whether she funneled any money to Mr. Clinton from her
billionaire ex-husband.

It's been a stunning blow to a wealthy woman who came to New York
eight years ago with no political background and rapidly
reinvented herself as a Democratic Party fund-raiser. A fixture
in the city's high society, she had enjoyed years of good
publicity.

'Generous person'

"I think she's been devastated by all of this," said Bobby Zarem,
a longtime friend and public relations spokesman. "Denise is just
the kindest, most generous person. I can't believe she's done
anything wrong."

For nearly a decade, the most urgent question surrounding Denise
Rich was how to wrangle an invitation to one of her soirees. But
these days, federal investigators want to know whether the
Grammy-nominated songwriter's $450,000 contribution to Mr.
Clinton's presidential library ­ or any of the other $1.5 million
she's given to Democratic causes ­ triggered his pardon of her
former husband.

The U.S. attorney's office in Manhattan has said it will subpoena
her bank records, while House and Senate committees pursue
similar leads. Ms. Rich declined to testify before the House
Committee on Government Reform recently, citing her right under
the Fifth Amendment not to incriminate herself.

Through her attorney Martin Pollner, she has insisted she "has
done nothing wrong with regard to the pardon and knows of no
wrongdoing by others in the requesting and granting of the
pardon."

Mr. Rich, a fugitive financier, spoke out for the first time
Saturday, describing the pardon as an "humanitarian act."

In a statement distributed by a public relations office in Tel
Aviv, Mr. Rich said that his 1983 indictment on charges of
evading more than $48 million in taxes, fraud and illegal oil
deals with Iran was a wrong remedied by Mr. Clinton.

"I do not consider the pardon granted by President Clinton as an
eradication of past deeds ­ but as the closing of a cycle of
justice and a humanitarian act," Mr. Rich said in the statement.

Vital lobbyist

Friends of Ms. Rich think that she is hardly the type to play
Machiavellian political games.

But based on a review of documents released recently by the House
Government Reform Committee, Ms. Rich emerges as a crucial member
of the lobbying team. Stressing that the pardon meant much to her
personally, she wrote to Mr. Clinton twice. Determined to focus
his attention on the matter, she approached him at a Dec. 20
White House Christmas party, pressing her case yet again.

When Robert Fink, Mr. Rich's New York attorney, wrote a memo
outlining the pardon campaign that would unfold, he said
"maximizing the use of D.R. and her friends" was a top priority.

Mr. Fink told his partners in an e-mail on Jan. 22 that he had an
obligation to "tell the true story" of the pardon campaign
because "the impression is that this was all paid for by DR
[Denise Rich]. ... It will come out and it does not pay to hide
what happened. People will only think the worse."

Yet questions keep coming: Why would Ms. Rich mount such an
effort for a man who had cheated on her? Ms. Rich has declined to
comment, noting through intermediaries that she sought the pardon
for her two daughters, who hadn't seen their father in the United
States since he fled prosecution for oil price rigging and tax
evasion in 1983. When her third daughter died in 1996 from
leukemia, Ms. Rich was reportedly distraught that hecouldn't
attend the funeral because of his fugitive status.

Born in Worcester, Mass., to holocaust survivors who ran a shoe
factory, Denise Eisenberg never lacked for money. Her father
introduced her to Marc Rich, a promising oil commodities trader,
and the two were married in 1966.

His career took off, and they spent many years living abroad. But
the troubles began in 1983, when he was indicted on charges of
fraud, racketeering and tax evasion. The family was then living
in Switzerland, and he refused to come home to face prosecutors.

Ms. Rich's marriage soon unraveled, when she learned that her
husband was going to leave her for a younger woman.

"Denise was never a political person," Mr. Zarem said. "When she
was first breaking into the New York scene. ... I was happy to
help her. I was the one who [encouraged] her to get involved
[with politics]. She's always had a very good heart, and people
were attracted to her."

In her 25,000-square-foot penthouse overlooking Central Park, Ms.
Rich drew celebrities such as Martha Stewart, Michael Jackson,
Mikhail Gorbachev, Robert De Niro and others.

Moral support

In one of the darkest days of his presidency, Mr. Clinton turned
to her for moral and financial support. Several days after the
Starr Report was issued in 1998, he flew to New York and dined
with a host of Democratic dignitaries in her home. She helped
raise more than $3 million for the Democratic National Committee
at that event.

Easygoing and down to earth, friends say that Ms. Rich is most at
home with musicians. During the last 15 years, she's penned a
string of hit songs for Aretha Franklin, Natalie Cole, Mary J.
Blige, Celine Dion and many others.

Writing songs, she has said, was good therapy after her divorce.
But it also strengthened her when Ms. Rich's mother, sister and
best friend all died of cancer. Now, facing another test, Ms.
Rich "is handling the stress as well as you'd expect," said Mr.
Pollner.

"I think she's astounded at everything that's happened," added
Mr. Zarem. "She never expected this to descend on her."



Distributed by Los Angeles Times/Washington Post News Service.
The Associated Press contributed to this report.


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