Panamanian court acquits 28 suspects in ‘Panama Papers’ trial

A Panamanian court on Friday acquitted 28 people accused of money laundering linked to the now-defunct law firm Mossack Fonseca, the epicenter of the ‘Panama Papers’ international tax evasion scandal.

Among those acquitted were the company’s founders, Jurgen Mossack and Ramon Fonseca, the latter of whom died in a Panama hospital in May.

During the trial, which was held in Panama City in April, the prosecution demanded twelve years in prison for the duo, the maximum penalty for money laundering.

However, Judge Baloisa Marquinez acquitted the couple and 26 others after finding that evidence taken from the law firm’s servers had not been collected in accordance with due process, raising questions about its “authenticity and integrity,” a statement said of the court.

The judge also found that “the remainder of the evidence was not sufficient and convincing to establish the criminal responsibility of the defendants,” according to the court statement.

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Leaked Mossack Fonseca documents from 2016 revealed how many of the world’s wealthy had hidden their wealth in offshore companies, sparking numerous investigations around the world.

Those involved include former British Prime Minister David Cameron, Russian President Vladimir Putin, soccer star Lionel Messi, then-Argentina President Mauricio Macri and Spanish filmmaker Pedro Almodovar, to name a few.

‘Justice has been done’

Panamanian prosecutors alleged that Mossack and Fonseca helped set up shady companies, with executives from German multinational company Siemens diverting millions of euros outside the company’s official accounts.

They were also accused of helping divert funds from a massive fraud in Argentina.

“Justice has been done, we are extremely pleased with the judge’s ruling,” Guillermina McDonald, a lawyer for Mossack and other defendants, told AFP.

“However, we are a little sad because we lost Mr. Ramon Fonseca along the way, and he was not able to see this result,” she added.

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The trial began eight years after the International Consortium of Investigative Journalists (ICIJ) began publishing the ‘Panama Papers’ on April 3, 2016.

The investigation, based on 11.5 million leaked documents from Mossack Fonseca, revealed how well-known individuals from around the world hid properties, companies, assets and profits to evade taxes or launder money.

To do this, they used the company to set up companies, open bank accounts and set up shell foundations in multiple countries to hide money, which in some cases came from illegal activities, according to the investigation.

The scandal led to the closure of Mossack Fonseca and shaped Panama’s international image as a tax haven.

Offshore companies are not illegal per se and there are numerous legitimate reasons to use them. But they can also be used to launder the proceeds of criminal activity or to hide embezzled or politically inconvenient wealth.

“A real injustice has been done,” Mossack said after the hearing.

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“Both my partner and all the people I worked with were serious, honest and correct people,” he added.

Source: AFP