By Kenneth Rijock
BOGOTA, Colombia — The Colombian representative of the Panama Papers law firm of Mossack Fonseca, Juan Esteban Arellano Rumazo, has reportedly been arrested, together with a number of prominent Colombian businessmen, and charged with money laundering, fraud, and illicit enrichment, in a massive tax evasion scheme orchestrated by Mossack Fonseca’s Colombia office, in coordination with its Panama headquarters.
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;