In the years following the document leak known as the Panama Papers, fortunes have been lost and earned again, careers ruined and investigations launched. A longtime attorney with Mossack Fonseca, the law firm at the center of the scandal, is now facing trial in Germany for his alleged role.
The Panama Papers were among the first large-scale document leaks. Made public by the International Consortium of Investigative Journalists (ICIJ), the 2.6-terabyte data leak to a German newspaper resulted in the collection of more than $1 billion dollars in back taxes from Mossack Fonseca clients involved in questionable offshore tax havens.
The ICIJ investigation exposed the financial dealings of the wealthy and well connected, estimating that the law firm had arranged hundreds of thousands of trusts, foundations, shell companies and foreign bank accounts on behalf of clients. The inquiry also uncovered tax evasion, tax fraud and efforts to circumvent international sanctions.
A senior attorney at Mossack Fonesca has been charged by German prosecutors with “forming criminal organizations and aiding and abetting tax evasion in two cases.”
German charges of tax evasion
Christoph Zollinger began at Mossack Fonesca in 1997 and left several years before the 2016 document leak. Despite his departure, files contained in the leaked documents identified him as a central participant in the creation of offshore entities for clients, including work connected to Syrian businessman Rami Makhlouf, who was under U.S. sanctions.
After leaving Mossack Fonesca, Zollinger moved to Switzerland to write an action novel under the pen name, Christoph Martin. By 2020, German prosecutors had issued an international warrant for his arrest. The warrant was later withdrawn in 2024.
Mossack Fonesca closed in 2018 amid mounting pressure and scrutiny. In June of last year, a court in Panama acquitted 28 individuals charged with money laundering in connection with the firm, including founders Jurgen Mossack and Ramon Fonesca. Fonesca passed away in May 2024. The judge that data used in the case had not been obtained through proper legal process and dismissed the charges.
In a data leak that continues to feed headlines and destabilize the lives of those involved, Zollinger is scheduled to stand trial in Cologne in March.
Concerned about offshore compliance?
Offshore tax havens can provide legitimate opportunities to manage and grow wealth while maintaining a degree of anonymity. For some Mossack Fonesca clients, however, decisions crossed the line into noncompliance. If you are considering offshore investments or already hold offshore assets, our guide, "Offshore Tax Matters Explained," outlines the basics of offshore banking, tax requirements and common compliance risks.
If concerned about your required reporting or whether your offshore tax haven is legitimate or merely a shell arrangement, the tax attorneys at Robert J. Fedor, Esq., L.L.C. can help. Contact us at 440-250-9709 or request a consultation. We serve clients in Northeast Ohio, Chicago, New York and internationally.
