Written by: Richie Kock Esq at Richie Kock Attorneys
One year after the ‘Panama Papers’ scandal, the now infamous Panama based company Mossack Fonseca is at it again. Earlier this month on February 10th, the partners of the company were detained on charges of participation in money laundering practices.
Mossack Fonseca’s name has popped up in the Lava Jato (‘Car Wash’) investigation in Brazil regarding high level corruption with the state owned energy and petroleum company Petrolio Brasileiro SA (Petrobras) at the centre.
Petrobras executives accepted bribes for awarding inflated contracts to certain firms. Construction giant Odebrecht and seven other companies operating in the country are involved in the scheme. Executives from Odebrecht declared that the company distributed more than USD 29 million in bribes in Peru between 2005 and 2014 for benefits in infrastructure works in said country.
Allegedly, Mossack Fonseca facilitated the laundering of the illicit funds through various entities to Panama. Mossack Fonseca would have also been instructed to conceal documents and to remove evidence of illegal activities connected to the Lava Jato case.