Source: AFP
A Panamanian court on Friday acquitted 28 people accused of money laundering in connection with the defunct Mossack Fonseca law firm at the center of the international “Panama Papers” tax evasion scandal.
Among those acquitted were the company’s founders, Jurgen Mossack and Ramon Fonseca, the latter of whom died in May in a Panamanian hospital.
During the trial, which was held in Panama City in April, prosecutors sought 12 years in prison for the duo, the maximum sentence 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 doubts about its “authenticity and integrity”, a court statement.
The judge also ruled that “the remaining evidence was not sufficient and conclusive to determine the criminal liability of the defendants,” the court’s statement said.
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Documents leaked by Mossack Fonseca in 2016 revealed how much of the world’s wealth was hidden in offshore companies, sparking dozens of investigations around the world.
Those involved included former British Prime Minister David Cameron, Russian President Vladimir Putin, soccer star Lionel Messi, then Argentine President Mauricio Macri and Spanish director Pedro Almodovar, to name just a few.
“Justice has been served”
Panamanian prosecutors had alleged that Mossack and Fonseca helped set up opaque companies in which executives of the German multinational Siemens deposited millions of euros outside the company’s official accounts.
They were also accused of helping to divert money from a huge fraud in Argentina.
“Justice has been served, we are extremely satisfied with the decision handed down by the judge,” Guilhermina MacDonald, a lawyer for Mossack and other defendants, told AFP.
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However, “we are a little sad because along the way we lost Mr. Ramon Fonseca and he didn’t get to see this result,” he added.
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 documents leaked by Mossack Fonseca, revealed how figures from around the world hid properties, companies, assets and profits to evade taxes or launder money.
To do this, they set up companies through the company, opening bank accounts and setting up foundations in multiple countries to hide money, which in some cases came from illegal activities, the investigation found.
The scandal led to the closure of Mossack Fonseca and shaped Panama’s international image as an offshore tax haven.
Offshore companies are not in themselves illegal and there are many legitimate reasons for using them. But they can also be used to launder the proceeds of criminal activity or to hide embezzled or politically inconvenient wealth.
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“There really has been a great injustice that has been done,” Mossack said after the hearing ended.
“Both my partner and all the people who have worked with me have been serious, honest and correct people,” he added.
Source: AFP
