30 F
New York
Sunday, January 23, 2022

Paul Singer’s Company Sues Panama Papers Law Firm

Related Articles

- Advertisement -

Must read

Panama law firm Mossack Fonseca is under fresh attack, facing a lawsuit from the powerful US hedge fund that successfully sued Argentina

When the polemical nature of the revelation of such a thing called “The Panama Papers” came to the fore several months ago, no trained business news pundits could have ever predicted what was to transpire in a case that has rocked the lives of some of the world’s wealthiest individuals.

According to recent reports, it would appear that New York hedge fund manager, Paul Singer has entered the fray. Readers may recall that the Jewish Voice previously reported that Singer’s Elliott Management Corp had pursued the Argentine government in order to compel them to make good on defaulted bonds.

Now, they are setting their sights on Mossack Fonseca, the law firm that is at the fulcrum of the Panama Papers scandal. Singer’s firm has accused the infamous bank of hiding assets of Argentine clients as they were going after and ultimately, successfully suing Argentina.

Singer’s lawsuit was filed in a Nevada court in late May, according to published reports. The AFP news service obtained the court papers on June 8. The news giant has revealed that the focus of the suit was on Mossack Fonseca’s business of establishing anonymously-owned trusts and companies for clients who were interested in offshore options to hide their funds from the IRS and legal officials.

When the voluminous amount of records and paperwork were absconded with and made public to the media by a German newspaper in April, evidence indicated that Mossack, Fonseca facilitated in the creation of more than 200,000 clandestine offshore companies.

While following through on its aim of suing the Argentine government, the lawsuit claims that back in 2014, a subsidiary of Elliott Management Corp known as NML Capital had sought help in discovering and tracing assets linked to some shell companies registered in Nevada.

But it said that Mossack Fonseca, though having evident close links to “MF Nevada” – a corporate services provider linked to those shell companies – insisted in the court that the two only had very limited ties.

For that reason, Mossack Fonseca insisted it could not provide the data the NML wanted, according to an AFP report.

The release of the Panama Papers in April, the new suit said, included documents that demonstrated the two firms were in fact “inextricably entwined” and that Mossack Fonseca had obstructed justice by not cooperating to provide the information required.

AFP reported that the documents “reveal that MF Nevada and Mossack Fonseca knowingly, willfully, and wrongfully obstructed NML’s discovery efforts and attempted to impede the court’s proper exercise of its jurisdiction,” the lawsuit said.

The suit says that because Mossack Fonseca’s evasive tactics resulted in numerous hearings and filings, NML “should be reimbursed for the very substantial legal fees it incurred as a result.”

The lawsuit comes just weeks after Argentina finally gave up its 15 year fight against NML and other hedge funds and paid off their bonds in a multi-billion dollar deal that earned NML huge profits.

Argentina had branded NML a “vulture” for buying its defaulted debt on the cheap and litigating for full payment.

Walter Metuth

balance of natureDonate

Latest article