State of New York seizes Marc Rich's bank account

Rich was granted a pardon on Clinton's final day in office

From CNN's Evan Pressman

NEW YORK (CNN) -- New York state tax officials seized a $5 million bank account belonging to financier Marc Rich, a source close to the case said Thursday.

The lien placed on the New York City Citibank account is the first action in the state's effort to recover more than $137 million in state and city taxes that officials say Rich owes, dating back to 1980.

Rich had been using the Citibank account to pay for legal expenses that have accrued as U.S. Attorney Mary Jo White conducts an investigation into his last-minute pardon by former president Bill Clinton.

The New York Department of Taxation and Finance carried out the seizure.

New York State Tax Commissioner Arthur Roth announced in March that his office would vigorously pursue Rich's New York personal assets. Roth said that Rich owed $26.9 million in back taxes for 1980, 1981 and 1982, $13.5 million in penalties, and $97.4 million in interest.

Rich fled to Switzerland in 1983 after he was indicted on federal counts of tax evasion, racketeering and other charges in an alleged scheme involving the illegal trading of crude oil.

In 1984, two of Rich's companies pleaded guilty to 38 federal criminal counts, and Marc Rich International also pleaded guilty to two counts of tax evasion. The companies paid $150 million to settle their parts of the case.

Rich's pardon, one of the 140 pardons and commutations Clinton granted on his final day in office, sparked a controversy immediately after Clinton left office because Rich had been listed by the Justice Department as an international fugitive.

White is also investigating whether campaign donations and contributions to the Clinton presidential library fund from Rich's ex-wife Denise Rich played a role in the decision to pardon him. Clinton has refuted that suggestion.

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