Ramón Fonseca, the co-founder of the law firm at the heart of the Panama Papers leaks, died on Wednesday night as he awaited the outcome of a Panamanian money laundering trial, his lawyer confirmed.
Mr. Fonseca, 71, died of complications from pneumonia and his daughter, Raquel Fonseca Tell spanish news agency Effie.
Mr Fonseca and Jürgen Mossack, who co-founded Mossack Fonseca, went on trial in Panama last month on charges related to an explosive investigation released by the News Media Alliance in 2016 that looked at 11.5 million confidential documents from the company. The documents, leaked by anonymous sources, identify international politiciansbusiness leaders, criminals and celebrities engage in a web of questionable financial transactions to conceal wealth and evade taxes.
In a 10-day trial that began on April 8 and lasted for 10 days, prosecutors accused the company of creating shell companies to hide funds from illegal activities. A total of 29 people – former employees of the now-defunct company and alleged co-conspirators – were charged with money laundering.
Since the scandal began, Mr Fonseca and Mr Mossack have maintained their innocence. Shortly after the Panama Papers came to light, Fonseca said in an interview that the company had carefully vetted its customers but that it was like a car factory and “is not responsible for what happens to the cars after they are sold.”
Mr Fonseca studied at the London School of Economics and later worked for several years at the United Nations in Geneva. He told the New York Times that he had been “trying to save the world.”
In 1986, he and Mr. Mossack merged their small law firms into one focused on secretive offshore banking. He also became a renowned novelist, twice winner of the prestigious Panama Literary Prize, and served as an advisor to President Juan Carlos Varela.
The Panama Papers investigation began when an anonymous whistleblower sent a message to the German newspaper Süddeutsche Zeitung asking if the paper was interested in the data. The outlet decided to share the massive leak with the International Consortium of Investigative Journalists in Washington, D.C., which assembled a team of hundreds of journalists from more than 100 news organizations around the world.
The leaked documents cover nearly 215,000 offshore entities and more than 14,000 banks, law firms and intermediaries working with Mossack Fonseca. News Partnership coverage began rolling out in April 2016, leading to the ouster of the prime ministers of Iceland and Pakistan.
But in Panama, some see company owners as victims. The country’s bar association came to its defense at the time, calling the leak an attempt to attack the country’s reputation.
In 2017, Mossack and Fonseca were arrested in Panama on money laundering charges related to the Brazil scandal Lava Jato, or car wash, Bribery scheme involving state-controlled oil company Petrobras. A few months later, they were released on bail. Their company, which once had more than 600 employees, closed in 2018, insisting it broke no laws.
In the Panama Papers trial, prosecutors accused the company of running shell companies aimed at diverting off-the-books funds linked to illegal payments from German electronics company Siemens. They also accuse the company of engaging in illegal activities linked to Argentina.
It’s unclear when the judge will issue a ruling. She is also expected to rule on last summer’s Operation Car Wash trial, which also involved the company.
Mr Fonseca has been hospitalized during the Panama Papers trial. His daughter told EFE that the scandal had caused his health to deteriorate.
“All of this witch hunt, all of the injustice, had a huge impact on his physical health,” she said.
