The Colombian representative of Mossack Fonseca, the law firm behind the Panama Papers offshore tax haven scandal, has been arrested and charged with money laundering, fraud, and illicit enrichment.
Juan Esteban Arellano Rumazo was booked along with a number of prominent Colombian businessmen in a “massive” tax evasion scheme allegedly orchestrated by Mossack Fonseca’s Colombia office.
The law firm set up an elaborate scheme, with lawyers, accountants and tax auditors, using front companies in Panama, Costa Rica, Spain and England, which sent bogus invoices to Colombian companies for non-existent services.
According to the attorney general of Colombia, a bank in the Bahamas was involved. Documents were falsified by individuals at the companies involved in the fraud. Accountant and auditors were employed to manipulate income statements, and evade taxes, all through Mossack’s scheme; the law firm reportedly received a fee of four percent to conduct the criminal enterprise.
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