In a significant ruling, a Panamanian judge has acquitted 28 individuals accused of money laundering in the internationally renowned Panama Papers case. Among the acquitted is Jürgen Mossack, co-founder of the law firm Mossack & Fonseca, which authorities alleged was central to a global scheme to conceal funds associated with illegal activities.
Mossack & Fonseca, established by Jürgen Mossack and Ramón Fonseca, the latter of whom passed away in May, was under intense scrutiny for allegedly creating offshore companies and conducting intricate financial transactions to obscure money tied to illicit activities.
This included links to the notorious “Operation Car Wash” corruption scandal involving the Brazilian construction giant Odebrecht. The company had previously pleaded guilty in a U.S. federal court to charges of using shell companies to hide millions of dollars in bribes to secure public contracts globally.
The judge’s decision to acquit was primarily based on the finding that the evidence against Mossack did not maintain the proper chain of custody following a raid on the now-defunct firm’s office. Additionally, other evidence presented was deemed insufficient and inconclusive to establish the criminal liability of the accused.
Personal and property precautionary measures against all the defendants were lifted, as stated in a judicial announcement. Guillermina Mc Donald, the defense attorney representing Mossack and Fonseca, expressed mixed emotions over the verdict, acknowledging the extensive impact the case had on many lives.
Judge Balaoisa Marquínez had previously merged the Panama Papers case with “Operation Car Wash,” a massive anti-corruption investigation initiated in Brazil. In her ruling, she concluded that it was impossible to prove the entry of illicit funds from Brazil into the Panamanian financial system with the intent of hiding or evading legal consequences.
This is not the first time Mossack, Fonseca, and others have faced and been acquitted of money laundering charges. In June 2022, they were acquitted in a separate case.
The Brazilian investigation into corruption began in 2014, and Mossack & Fonseca came under the spotlight following the leak of 11 million financial documents tied to the firm. The leak had profound global repercussions, leading to the resignation of Iceland’s prime minister and implicating numerous world leaders, including former leaders of Argentina and Ukraine, Chinese politicians, and Russian President Vladimir Putin.
The acquittal marks a significant moment in the long-running saga of the Panama Papers, which has had far-reaching implications for global financial transparency and anti-corruption efforts.
