Former co-owner of Panama Papers law firm convicted of aiding and abetting tax evasion

A German court has convicted the former co-owner of Panamanian law firm Mossack Fonseca — the subject of the International Consortium of Investigative Journalists’ Panama Papers investigation — for aiding and abetting tax evasion.

Cologne’s regional court sentenced Christoph Zollinger, a Swiss-Panamanian dual national, to one year and nine months’ probation, according to ICIJ’s German partner ZDF. A spokesperson for the court confirmed to ICIJ that the probation period will last for three years.

German prosecutors accused Zollinger and accomplices of establishing offshore companies based in Panama and other tax havens in exchange for payment, which the court determined was done “on a massive scale” and “in a factory-like manner.”

The indictment listed a total of 50 offshore companies that were used almost exclusively to conceal financial dealings, contributing to a tax loss of an estimated 13 million euros, or about $15 million. Prosecutors dropped an initial charge against Zollinger of forming criminal organizations.

The sentencing comes 10 years after ICIJ, German newspaper Süddeutsche Zeitung and more than 100 media partners first published the landmark Panama Papers investigation based a trove of more than 11.5 million confidential documents from Mossack Fonseca. The investigation exposed a sprawling international web of offshore shell companies created for wealthy clients, including star athletes, top business executives and heads of state.

Although Zollinger left Mossack Fonseca years before journalists published the Panama Papers, leaked records showed he was involved in some of the law firm’s most controversial decisions.

In a statement read by his lawyer to the court during the trial, Zollinger admitted to the charges of aiding and abetting tax evasion. He has waived the right to appeal, the court spokesperson said.