Panama court acquits all defendants in “Panama Papers” and “Car wash” cases.

June 30, 2024, - The Second Liquidator Court for Criminal Cases of Panama’s First Judicial Circuit acquitted all defendants in the “Panama Papers” and “Operation Car Wash” cases

• https://x.com/barsallocarlos/status/1806844877143158887 [ see attached]

This landmark legal process involved 28 individuals in the “Panama Papers” case, stemming from the leaked documents of the now-defunct Panamanian law firm Mossack Fonseca & Co., and 31 people in the “Car Wash” case, which implicated various global figures in money laundering schemes.

Due to similarities in the accused parties and the facts under investigation, the Brazilian “Car Wash” scandal was consolidated with the “Panama Papers” case in a single file by the Prosecutor’s Office.

According to a statement from Panama’s judicial body, Judge Baloísa Marquínez of the Second Liquidator Court for Criminal Cases

• Found significant flaws in the evidence presented for the “Panama Papers” case.
• The electronic evidence from Mossack Fonseca’s servers, submitted in paper format, failed to meet the required chain of custody standards. Moreover, the court determined that this evidence did not comply with digital evidence principles, particularly noting the absence of crucial “hash” values necessary for verifying the authenticity and integrity of digital data.
• Consequently, Judge Marquínez concluded that the remaining evidence was insufficient and inconclusive to establish criminal liability for the accused parties.
• https://www.organojudicial.gob.pa/noticias/juzgado-segundo-liquidador-dicta-sentencia-en-casos-lava-jato-y-panama-papers
• Regarding the “Car Wash” case, the statement indicated that investigators could not definitively prove the entry of illicit funds from Brazil into the Panamanian financial system was to conceal or evade legal consequences of preceding crimes.

The “Panama Papers” scandal, which erupted in April 2016, stemmed from an unprecedented leak of 11.5 million digital files from the Panamanian law firm Mossack Fonseca & Co.

Initially obtained by the German newspaper Sueddeutsche Zeitung and shared with the International Consortium of Investigative Journalists (ICIJ), the documents received worldwide media coverage. The leaked files revealed how a global elite, including politicians, heads of state, billionaires, and sports figures, utilized offshore companies to conceal properties, businesses, assets, and profits, potentially for tax evasion or money laundering.

This exposure prompted international discussions on financial transparency and offshore banking regulations, highlighting the role of tax havens such as Panama and the British Virgin Islands. The scandal’s impact extended beyond individual cases, raising broader questions about global financial practices and the need for enhanced oversight in international finance.

On the other hand, the “Car Wash” investigation, originally known as “Operação Lava Jato” in Brazil, began innocuously with a probe into suspected money laundering at a Brasilia car wash. However, it quickly became one of Latin American history's largest corruption scandals. Through meticulous investigation and strategic use of plea bargains, prosecutors unravelled an intricate web of corruption centred around Petrobras, Brazil’s state-owned oil giant.

At the heart of the scandal lay a sophisticated bribery scheme involving inflated contracts between Petrobras and numerous construction firms. The excess funds from these contracts were systematically funnelled to various beneficiaries, including politicians across party lines, corporate executives, and various intermediaries. As the investigation deepened, it became clear that the corruption extended far beyond Brazil’s borders. The scandal’s tentacles reached across Latin America as evidence emerged that implicated construction companies had secured lucrative contracts with multiple governments through extensive bribery. Odebrecht, a Brazilian construction conglomerate, stood out as a particularly egregious offender, allegedly dispersing an estimated $800 million in bribes across several countries.

Source

https://www.jurist.org/news/2024/06/panama-court-acquits-all-defendants-in-panama-papers-and-car-wash-cases/