Court acquits all "Panama Papers" defendants
In 2016, a media network in the "Panama Papers" exposed a massive financial fraud. Politicians, sports figures, and other prominent individuals such as Lionel Messi and Vladimir Putin are alleged to have been clients of the law firm Mossack Fonseca in over 215,000 shell companies in tax havens. However, no one has had to go to jail.
Eight years after the global financial scandal of the "Panama Papers" was revealed, the 28 defendants were surprisingly acquitted by the court in Panama City. The presiding judge, Baloísa Marquínez, also ordered the termination of the criminal proceedings against the now deceased Ramón Fonseca Mora. The prosecution had demanded twelve years in prison for both.
The collection of evidence from the servers of the now defunct law firm Mossack Fonseca was not traceable. The other evidence was furthermore not sufficient and conclusive, the judge ruled. The defendants were accused of money laundering through the establishment of 215,000 shell companies in tax havens, in which politicians, prominent figures, and sports stars were alleged to have hidden their assets.
A Lawyer from Fürth
In the spring of 2016, the "Süddeutsche Zeitung" and other investigative journalism networks (ICIJ) exposed the business dealings of the Panamanian-based shell companies. Through a massive data leak, 11.5 million documents were leaked to the newspaper. Almost 400 reporters from over 80 countries participated in the investigations.
The prosecution held Mossack and Fonseca responsible for facilitating the creation of opaque companies through their law firm, in which, for example, managers of the Siemens corporation were alleged to have deposited millions of Euros outside the actual accounts of the company. These companies were said to have served to hide money from commissions.
Mossack, who is 76 years old, is a lawyer from Fürth in Bavaria. In the early 60s, his family emigrated from Germany to Panama. He studied law and worked in various law firms in Panama City and London. In the 80s, he founded the law firm with Fonseca, specializing in shell companies. In 2018, the law firm announced that it would cease operations due to "irreparable" damage to its image.
Messi, David Cameron, and Putin
The Icelandic Prime Minister Sigmundur David Gunnlaugsson and the Pakistani Prime Minister Nawaz Sharif resigned after the publication of the "Panama Papers". Former British Prime Minister and current Foreign Minister David Cameron and football star Lionel Messi were also listed in the documents. The name of Russian President Vladimir Putin was also mentioned. Former Argentine President Mauricio Macri and Spanish filmmaker Pedro Almodóvar were also alleged to be involved.
The "Spiegel" quotes estimates that more than 1.3 billion dollars in fines and taxes were collected after the publication of the "Panama Papers".
The acquittal of the 28 defendants in the Panama City court, despite the allegations of money laundering through 215,000 shell companies in tax havens linked to the Panama Papers and Mossack Fonseca, has raised questions about the effectiveness of international efforts to curb tax fraud in the economy.
Despite the East Hampton, New York, court's decision to dismiss charges against Lionel Messi related to his tax situation, the global scrutiny of financial dealings brought about by the Panama Papers continues to pressure high-profile individuals and countries to address issues of tax fraud in their economies.
