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Judge acquits 28 people accused in Panama Papers case, including law firm co-founder

A judge has acquitted 28 people accused of money laundering in an international case known as the Panama Papers

Via AP news wire
Saturday 29 June 2024 13:01 EDT
Panama Papers Trial
Panama Papers Trial (Copyright 2024 The Associated Press. All rights reserved)

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A judge has acquitted 28 people accused of money laundering in an international case known as the Panama Papers, including the co-founder of a law firm that authorities say was at the center of a conspiracy to hide money linked to illegal activities.

Jürgen Mossack founded Mossack & Fonseca with then associate Ramón Fonseca, who died in May. Mossack was acquitted on Friday along with others after a Panamanian judge found that the evidence against Mossack didn't comply with the chain of custody after authorities raided the office of the now defunct firm.

Prosecutors had accused Mossack, Fonseca and others of creating offshore companies and using complex transactions to hide money from illegal activities related to the so-called car wash corruption scandal involving Brazilian construction company Odebrecht, which pleaded guilty in U.S. federal court to a charge related to using shell companies to hide millions of dollars in bribes paid worldwide to win public contracts.

The judge noted that other evidence in the Panama Papers case “was not sufficient and conclusive to determine the criminal responsibility of the accused.”

In addition, the judge lifted personal and property precautionary measures against all the defendants, according to a judicial statement.

“We feel satisfied in the midst of mixed emotions, because many lives were affected along the way,” Guillermina Mc Donald, who was the defense attorney for Mossack and Fonseca, told The Associated Press. Her firm also represented 80% of the accused firm’s collaborators.

Judge Balaoisa Marquínez had decided to combine the Panama Papers case with another known as “Operation Car Wash,” a major anti-corruption investigation that began in Brazil.

On Friday, she ruled that in the car wash case, “it was not possible to determine the entry of money from illicit sources, coming from Brazil, into the Panamanian financial system with the purpose of hiding, concealing, disguising or helping to evade the legal consequences of the preceding crime.”

In June 2022, Mossack, Fonseca and 37 other people were acquitted in a separate money laundering case.

The investigation in Brazil began in 2014, with the Mossack & Fonseca firm later coming under scrutiny after 11 million financial documents tied to the company were leaked.

The repercussions of the leak were widespread: it led to the resignation of a prime minister in Iceland and brought scrutiny to now former leaders of Argentina and Ukraine, Chinese politicians and Russian President Vladimir Putin, among others.

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