Panama’s public prosecutor’s office has requested a maximum of 12 years in prison for the founders of law firm Mossack Fonseca, the central figures in the international scandal known as the “Panama Papers.”
The request is based on charges of money laundering related to the “Lava Jato” case in Brazil.
During the trial in Panama City, prosecutor Isis Soto urged a guilty verdict for Jürgen Mossack and Ramón Fonseca, citing the offense of money laundering, which carries a penalty of 5 to 12 years of imprisonment under Panamanian law.
In addition to Mossack and Fonseca, 30 other individuals are also facing charges in this case.
The prosecution accuses Mossack Fonseca of being a “criminal organization” involved in concealing assets linked to the “Lava Jato” corruption investigation that originated in Brazil.
The investigation revealed corruption involving Brazilian construction companies, including Odebrecht, which paid bribes to officials in several Latin American countries to secure public works contracts between 2005 and 2014.
Soto stated that Mossack and Fonseca knowingly collaborated while being aware of indications or elements of the defendants’ involvement in illicit activities related to the “Lava Jato” case.
According to the prosecutor, their collaboration allowed for the concealment of the ownership of unlawfully obtained assets.
Mossack, Fonseca, and the other defendants pleaded not guilty on the first day of the trial. Fonseca dismissed the accusation as “ridiculous.”
In 2017, both Mossack and Fonseca were placed in custody in relation to this case, which is separate from the “Panama Papers” leak in 2016.
The leaked documents exposed the creation of numerous offshore companies by Mossack Fonseca on behalf of individuals worldwide, some of which were allegedly involved in tax evasion and money laundering.
Since 2019, Panama has criminalized tax evasion of over US$300,000 per year, treating it as a punishable offense. Previously, it was considered only an administrative offense in the country.
Soto asserted that there is evidence that Mossack Fonseca aided in covering up and concealing the origin and destination of illicitly obtained assets related to the case in Brazil.