Panama Papers Names Reveal Differing Uses for Offshore Banking
A database of names of people using offshore accounts in Latin America and the Caribbean went live this week, part of the biggest leak of secret data ever to hit the web, now dubbed "The Panama Papers."
Biggest Leak Ever
The Panama Papers represent the most unprecedented leak of 11.5 million files from Mossack Fonseca, the fourth largest offshore law firm according to The Guardian.
The data, first given to the German newspaper Sueddeutsche Zeitung by a "John Doe" over a year ago, totals a massive 2.6 terabytes of information. For the sake of comparison, the famous Wikileaks disclosure totaled about 1.7 gigabytes.
Unlike Wikileaks, which simply dumped the information (some of it classified) onto the web, the Panama Papers data is mostly being carefully sorted through by hundreds of journalists associated with the International Consortium of Investigative Journalists (ICIJ).
But on Monday, the ICIJ made a database of names from the Panama Papers available to the public on the web at offshoreleaks.icij.org.
Notable Names Show Differing Purposes
The ICIJ included an important proviso before you can look at the database that reiterates that there are many legitimate, legal uses for offshore companies and that a name's appearance in the database doesn't necessarily suggest they've broken the law.
That said, some interesting names appeared in the database, including world leaders, celebrities, and business leaders, some of disrepute. Here are some of the most interesting.
Emma Watson
Actress and 26-year old former Harry Potter star Emma Watson was found in the Panama Papers database, according to the Telegraph. The actress is listed as a beneficiary of a company based in the British Virgin Islands.
Watson, who's worth about $50 million, said through her spokespeople that the account offered "absolutely no tax or monetary advantages... only privacy." They added the offshore company was used because in the U.K., due to disclosure laws, companies had to publish her financial details, "and therefore do not give her the necessary anonymity required to protect her personal safety."
Martin Frankel
A Connecticut financier, Frankel pleaded guilty in 2002 for insurance fraud.
He stole more than $200 million from insurers and was sentenced to a 17-year jail term in 2004. According to the Hartford Courant, Frankel was notorious for buying lavish luxury cars, furs, jewelry, and led federal authorities on a global manhunt, chartering a plane to Rome with two women and $10 million in diamonds. He was eventually caught in Hamburg, Germany in 1999.
Leonard Gotshalk
A former offensive tackle for the Atlanta Falcons, Gotshalk turned to business after he retired.
He's faced criminal investigations for decades for shady dealings. The Securities and Exchange Commission sued Gotshalk for misleading investors about an oil and gas company he was involved with, for example. As USA Today reported, in 2004, he was convicted by an Oregon court for theft.
In 2010 Gotshalk was also accused by federal prosecutors of collaborating to inflate the price of some tech stocks.
More Names, But Few Details So Far
A few other interesting names have popped up in the Panama Papers, though details about their holdings at Mossack Fonseca are scare so far. (To reiterate, offshore accounts are often legal and used for the purposes of privacy and security.)
Kung Fu comedian and actor Jackie Chan, American Idol's snappy judge Simon Cowell, legendary director Stanley Kubrick, and soccer superstar Lionel Messi all appear in the Panama Papers' database.
Despite the mix of legitimate and illegitimate uses of offshore corporations displayed by the selection of names appearing in the Panama Papers, the leak is making political and economic waves already.
On Monday, according to the BCC, 300 economists published an open letter to world leaders urging they end tax havens, which they said had only benefited the rich, powerful corporations, and has contributed to inequality.