Paraguayan Importer’s Web of Corruption Exposed
A Network of Corruption Exposed
A recent designation by the Office of Foreign Assets Control (OFAC) has linked a network of import and export companies, including Espana Informatica S.A., to a massive corruption scheme involving the importation of electronic equipment into Paraguay.
The Scheme: Avoiding Taxation and Laundering Money
The scheme, orchestrated by entrepreneur Kassem, allegedly used several methods to avoid taxation and launder money through the importation of goods. Kassem, who is the president of Espana Informatica S.A., coordinated with U.S.-based suppliers to import electronic equipment into Paraguay, using altered invoices to reduce the stated value of the goods and evade taxes.
The Scale of the Scheme
The scheme is believed to have generated hundreds of millions of dollars in revenue annually. OFAC has designated Kassem and several of his companies, including Espana Informatica S.A., under Executive Order 13818 for providing financial support to corruption and bribery schemes.
Associates Involved
Kassem’s network also included associates such as Liz Paola Doldan Gonzalez, who was identified as an intermediary in the scheme. Doldan used her company, Mobile Zone International Import-Export S.R.L., to purchase goods from a Miami-based company and then undervalued them in tax declarations to evade taxes.
The Paraguayan Anti-Corruption Prosecutor’s Office Takes Action
The Paraguayan Anti-Corruption Prosecutor’s office launched “Operation Phone Call” in 2019 to dismantle Doldan’s scheme, which allegedly generated at least $675 million. OFAC has designated Doldan and her company under Executive Order 13818 for providing financial support to corruption schemes.
The Global Effort Against Corruption
The designations are part of a broader effort by the United States to combat human rights abuse and corruption globally. The Global Magnitsky Human Rights Accountability Act, signed into law in 2017, aims to impose tangible consequences on those who commit serious human rights abuse or engage in corruption.
Consequences of the Designation
As a result of today’s action:
- All property and interests in property owned or controlled by the designated persons are blocked and must be reported to OFAC.
- U.S. persons are prohibited from engaging in any transactions with these individuals or entities without proper authorization.