Four Individuals Charged in Decades-Long Criminal Scheme Exposed by Panama Papers Leak

Background

The Department of Justice has charged four individuals, including one US citizen, in connection with their alleged roles in a decades-long criminal scheme perpetrated by Mossack Fonseca & Co, a Panamanian global law firm. The case stems from the Panama Papers leak in 2016, which exposed secret offshore accounts.

Indictment and Charges

According to officials, Richard Gaffey, a US citizen; Ramses Owens, 50, of Panama; Dirk Brauer, 54, and Harald Joachim Von Der Goltz, 81, both German citizens, were charged with:

• Fraud
• Money laundering
• Other financial crimes

The indictment alleges that the group marketed, created, and serviced sham foundations and shell companies in foreign countries to conceal US taxpayers’ actual incomes from the IRS.

Alleged Activities

Prosecutors claim that Owens and Brauer worked with Mossack Fonseca clients to hide income from the tax authorities. Von Der Goltz was allegedly a client who received assistance from Gaffey, an accountant.

• Three of the four defendants have been arrested
• Owens remains at large

Charges

The group is facing a range of charges, including:

• Wire fraud
• Money laundering conspiracy
• Tax evasion

Additionally, Gaffey and Von Der Goltz are charged with:

• Failing to file required disclosure reports for their foreign financial accounts

Von Der Goltz also faces charges of making false statements.

Investigation and Outcome

The investigation into Mossack Fonseca & Co was sparked by the Panama Papers leak, which exposed the firm’s role in helping wealthy clients hide assets offshore. The case is seen as a major victory for US authorities in their efforts to combat international financial fraud.