‘Panama Papers’ lead to first U.S. charges

NEW YORK — Federal authorities in New York said four men have been charged in an international tax scheme related to the so-called Panama Papers.

The 11-count indictment unsealed Tuesday is the first U.S. prosecution to stem from the scandal and includes charges of conspiracy, wire fraud, tax evasion and money laundering. Two Germans, one American and one Panamanian citizen were charged.

Federal prosecutors said a global law firm based in Panama, Mossack Fonseca & Co., conspired to circumvent U.S. tax laws to maintain their own wealth and that of their clients.

They said the scheme dates to 2000 and involved sham foundations and shell companies in Panama, Hong Kong and the British Virgin Islands. The accounts allegedly were intended to conceal tax dollars owed to the IRS.

Prosecutors charged an account manager linked to Mossack Fonseca, a lawyer, a client and his accountant with tax fraud, money laundering and other offenses, stemming from their use of offshore accounts to shuffle and hide millions of dollars. Three of the four have been arrested, the U.S. said.

Among those charged was Ramses Owens, a partner at the now-defunct firm who the U.S. said helped create, market and service shell companies for the firm’s wealthy clients. Prosecutors said he was assisted by Dirk Brauer, an investment manager for an affiliated firm who was arrested in Paris on Nov. 15. Owens remains at large.

Prosecutors also charged Harald Joachim von der Goltz, a wealthy client of the firm, and his accountant, Richard Gaffey, with money laundering, conspiracy to evade taxes and failure to declare foreign accounts.