Panama Papers Scandal Verdict

In a significant verdict related to the Panama Papers scandal, a Panamanian judge acquitted all 28 defendants in a money-laundering case. The defendants included former employees of the law firm Mossack Fonseca, which was at the center of the leaked documents that sparked global outrage in 2016.

The verdict came after eight years following the publication of an investigation based on 11.5 million leaked documents from Mossack Fonseca. The leak exposed the offshore banking industry, leading to international tax investigations and the downfall of political figures.

Among the original 29 defendants were the co-founders of the firm, Jürgen Mossack and Ramón Fonseca. Ramón Fonseca passed away in May at the age of 71 while awaiting the verdict. In her detailed 339-page ruling, Judge Baloísa Marquínez dropped the case against Mr. Fonseca due to his death.

Prosecutors had alleged that Mossack Fonseca had set up shell companies to conceal money obtained through illegal activities and had failed to exercise proper diligence in vetting clients. However, the judge ruled that the electronic evidence presented by prosecutors did not adhere to chain of custody protocols and had authentication issues. Additionally, the judge found insufficient evidence to hold the accused accountable.

Ramón Fonseca, a co-founder of the law firm Mossack Fonseca, in his office in Panama City in 2016. Mr. Fonseca died in May at age 71.

Credit: Carlos Jasso/Reuters