(Panama) A sentence of up to 12 years in prison was requested Thursday during a trial in Panama for money laundering against the founding lawyers of the firm Mossack y Fonseca, at the origin of the scandal of the Panama Papers.
“The public prosecutor (prosecution) requests the conviction of MM. Jürgen Mossack and Ramon Fonseca,” said prosecutor Isis Soto during the trial in the “Lava Jato” case for money laundering in relation to Brazilian construction companies, including the Odebrecht group. Panamanian law provides for a penalty ranging from 5 to 12 years in prison for such acts.
MM. Mossack and Fonseca were arrested in 2017 and remanded in custody in the “Lava Jato” case. However, this is independent of the Panama Papers scandal, which erupted when leaked documents revealed in 2016 the creation by the Panamanian law firm of multiple offshore companies allowing personalities from all over the world to practice tax evasion or money laundering.
In addition to the two lawyers, around thirty defendants are tried in this case of bribes paid to officials from several Latin American countries to obtain public contracts.
The prosecution called the law firm, which closed in 2018 due to the Panama Papers scandal, a “criminal organization”. The two lawyers “knew that there were indications or elements of the participation” of the Brazilian groups “in illicit activities”, denounced the prosecutor.
All the defendants declared themselves innocent. Mr. Ramon Fonseca called the accusation “ridiculous”.
According to the prosecution, the defendants controlled “a whole gear” which made it possible “to hide the ownership of goods obtained illegally” in Brazil.
Since 2019, Panamanian law provides for prison sentences for tax evasion over $300,000 per year. Previously, tax evasion was not considered by the Central American country as a crime, but as a simple administrative offence.