ICIJ · The International Consortium of Investigative Journalists

The Panama Papers Reading List

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Founders of Panama Papers Law Firm Arrested on Money Laundering Charges

Police in Panama arrested the founders of Mossack Fonseca, the law firm at the center of the Panama Papers scandal, on money laundering charges Thursday after authorities raided the firm’s headquarters as part of investigations into Brazil’s largest-ever bribery scandal.

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Tax Agencies Draw Up ‘Target List’ of Offshore Enablers

Tax agencies from 30 countries convened in Paris this week to take part in the largest ever simultaneous exchange of tax information and to share results and details on thousands of investigations sparked by the Panama Papers.

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Panama’s Revolving Door Shows Global Challenge of Offshore Reform

In a country where top-drawer lawyers move freely between high government posts and law firms selling secrecy-cloaked shell companies, bringing lasting change to the offshore industry is a challenge.

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Journalists Hang Tough in Face of Backlash Against Panama Papers Reporting

Reporters have faced consequences both in nations where media crackdowns are common and also in nations with reputations for high levels of press freedom.

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Panama Papers Have Had Historic Global Effects — and the Impacts Keep Coming

The investigation has produced an almost daily drumbeat of regulatory moves, follow-up stories and calls by politicians and activists for more action to combat offshore financial secrecy.

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BVI Hits Mossack Fonseca With Largest Fine Ever After Panama Papers Investigation

The $440,000 penalty followed a six-month investigation which included on-site compliance inspections and the appointment of an officer to monitor Mossack Fonseca's operations.

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Experts Who Quit Panama's Transparency Commission Produce Their Own Report

Report's authors say that the U.S. and EU have the power to force other nations to embrace transparency reforms by threatening to cut off access to their financial systems.

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Pakistan's PM Responds to Supreme Court Hearing on Panama Papers

Nawaz Sharif defended himself before the nation’s highest court, as opposition supporters celebrated in Islamabad.

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Panama Hires PR Firm Amid Ongoing Panama Papers Fallout

A PR firm is being paid $50,000 a month to help the Panama government, while arrests, protests and more continue around the world.

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Hedge Fund Sues Mossack Fonseca For Alleged Obstruction of Justice in Nevada

Confidential emails revealed in the Panama Papers have opened a new front in a bitter court battle in Nevada involving a hedge fund led by an American billionaire, new court filings show.

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Experts Quit Panama's Transparency Committee Over Lack of Transparency

The committee was established in the wake of the Panama Papers to probe Panama's financial services industry, but now two out of three international members have resigned.

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Continent of Secrets: Uncovering Africa's Offshore Empires

Africa receives $50 billion of foreign aid money annually, but then loses roughly the same amount through illicit outflows. Can you uncover Africa's offshore empires? Play now!

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Secret Offshore Deals Deprive Africa of Billions in Natural Resource Dollars

The Panama Papers show how politicians and mining, oil and gas interests benefit from secrecy and dubious multimillion dollar transfers.

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Secret Documents Expose Nigerian Oil Mogul’s Offshore Hideaways

A dealmaker’s backstage maneuverings are revealed in the Panama Papers as he hung with celebrities while criminal investigators closed in.

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Diamond Mine with Offshore Ties Leaves Trail of Complaints

The Panama Papers reveal a network of shell companies linked to a mining operation that has been accused of environmental harms and unpaid taxes.

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Out of Africa, Into Tax Havens

As visitors come to see what’s in Africa, some safari operators’ profits head offshore.

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Reporters Warned, Inquiries Opened as African Nations Respond to Panama Papers

Mossack Fonseca targeted clients in Africa for business, but now some of those clients have become targets themselves as authorities launch investigations into the Panama Papers revelations.

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Panama Papers Credited As New EU Anti Money-Laundering And Tax Abuse Rules Proposed

The European Commission has announced it will tighten the European Union’s anti-money laundering rules and increase transparency requirements for companies and trusts.

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Venezuela and Panama To Launch Joint Panama Papers Investigation

The joint investigation will be the "first of its kind," and Venezuela's attorney general has hinted at a long list of suspects.

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European Inquiry to Call UK Chancellor, Mossack Fonseca to Testify

A special 65-member Panama Papers committee of inquiry has been created by the European parliament to investigate potential wrongdoing exposed by ICIJ's investigation.

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Mossack Fonseca's US Operations Under Pressure, Island Offices Closed

Panamanian law firm Mossack Fonseca’s local affiliate in Nevada has resigned from more than 1,000 companies and paid a penalty to the state amid investigations on multiple fronts.

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US States Under Pressure As World Pushes For Financial Transparency

Nevada, Wyoming and Delaware are facing growing pressure over their lack of corporate transparency, as the United States and the international community continue to respond to fallout from the Panama Papers.

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The Malefactors of Mossack Fonseca

Meet The Dutchman, the Queen of the South, the Boss of Bosses and other convicted felons and alleged wrongdoers who have benefited from services provided by the law firm.

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Panama Papers Include Dozens of Americans Tied to Fraud and Financial Misconduct

Mossack Fonseca's files include offshore companies linked to at least 36 Americans accused of serious financial wrongdoing, including fraud and racketeering.

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Beyond Panama: Unlocking the world’s secrecy jurisdictions

The 21 jurisdictions covered by the Panama Papers data vary from the rolling hills of Wyoming to tropical getaways like the British Virgin Islands. But all have at least one thing in common - secrecy is the rule.

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Panama Papers Source Offers Documents To Governments, Hints At More To Come

The anonymous whistleblower behind the Panama Papers has conditionally offered to make the documents available to government authorities.

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US Officials React to Panama Papers Disclosures With Get-Tough Proposals

The Obama administration has proposed a national registry documenting the real owners of shell companies and other measures aimed at fighting offshore chicanery.

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Iceland’s First Lady Linked to Offshore Investments

Records in the Panama Papers and the Swiss Leaks leaked files tie the wife of Iceland President Ólafur Grímsson to offshore companies and accounts.

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Coming Soon: ICIJ to Release Panama Papers Offshore Companies Data

The database, to be released on May 9, will likely be the largest ever release of secret offshore companies and the people behind them.

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Cartel-Linked Suspects Arrested After Panama Papers Revelations

Uruguayan prosecutors are seeking to bring to trial at least five individuals detained on suspicion of laundering money for a powerful Mexican drug cartel.

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US Prosecutor Opens Investigation Into 'Panama Papers Matters'

ICIJ welcomes the interest from the Manhattan U.S. Attorney's office, but has made it clear it won't be turning over its data or taking part in any investigation.

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Banks Ordered to Provide Info on Panama Dealings to NY Regulator

More than a dozen banks identified in the Panama Papers investigation have been asked to hand over details of their communications with Mossack Fonseca.

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Art held offshore

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Pakistan's PM Leaves Country, Spanish Minister Resigns

Nawaz Sharif faces growing pressure and calls for his resignation, a Spanish minister has stepped aside, and more governments are pledging reform as fallout from the Panama Papers revelations continues.

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Panama Police Raid Mossack Fonseca As Global Fallout Continues

The search of Mossack Fonseca's Panama headquarters comes after a number of raids and official action taken in response to the Panama Papers revelations.

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Global joint investigation to be proposed at special tax meeting

Tax officials from 28 nations met in Paris to develop a strategy for collaborative action based on Panama Papers revelations.

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British PM Announces New Transparency Measures Following Panama Papers Revelations

David Cameron appeared before parliament on Monday to address concerns about his own links to offshore holdings revealed in the Panama Papers, as well as announce reform aimed at boosting transparency.

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The Art of Secrecy

Locked in the files of a Panama law firm are the answers to mysteries involving Van Goghs, Picassos, Rembrandts and other masterworks.

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Panama Papers Spark High-Level FIFA Resignation and Swiss Police Raid

Swiss police searched the office of Europe's top soccer association and a member of FIFA's ethics panel resigned following Panama Papers revelations.

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Leaked Files Offer Many Clues To Offshore Dealings by Top Chinese

Eight current and former members of the Politburo Standing Committee, the country's top decision makers, have relatives with secret offshore companies.

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Spies and Shadowy Allies Lurk in Secret With Help From Offshore Firm

Firm helps CIA operatives and other characters — real or fanciful — from the world of espionage set up offshore companies to obscure their dealings.

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Iceland Prime Minister Tenders Resignation Following Panama Papers Revelations

The prime minister of Iceland said he would resign following mass protests triggered by reports from ICIJ and partners that he had owned an offshore company in the British Virgin Islands with his wife.

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Law Firm’s Files Include Dozens of Companies and People Blacklisted by U.S. Authorities

Global law firm’s customers include suspected financiers of terrorism, nuclear weapons proliferators and gunrunners.

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How Family that Runs Azerbaijan Built an Empire of Hidden Wealth

Documents peel away three layers of secret ownership in a conglomerate and lead to gold mines and overseas real estate.

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Global Banks Team with Law Firms To Help the Wealthy Hide Assets

Leaked records show that hundreds of banks and their subsidiaries and branches registered nearly 15,600 shell companies.

About this project

The Panama Papers is an unprecedented investigation that reveals the offshore links of some of the globe’s most prominent figures.

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All Putin’s Men: Secret Records Reveal Money Network Tied to Russian Leader

Complex offshore financial deals channel money and power towards a network of people and companies linked to President Vladimir Putin.

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Giant Leak of Offshore Financial Records Exposes Global Array of Crime and Corruption

Millions of documents show heads of state, criminals and celebrities using secret hideaways in tax havens.

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Panamanian Law Firm Is Gatekeeper To Vast Flow of Murky Offshore Secrets

Files show client roster that includes drug dealers, Mafia members, corrupt politicians and tax evaders — and wrongdoing galore.

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Leak Ties Ethics Guru to Three Men Charged in FIFA Scandal

Secret documents show how deeply the world of soccer has become enmeshed in the world of offshore havens.

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Iceland’s Prime Minister Ducks Question But the Answer Catches Up with Him

He came to power after the country’s financial collapse while hiding his offshore holdings of millions in bonds from Icelandic banks.

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How the One Percenters Divorce: Offshore Intrigue Plays Hide and Seek with Millions

Firm that practices no matrimonial law nonetheless plays big role when the superrich around the globe decide to split.

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Secret Offshore Deals Deprive Africa of Billions in Natural Resource Dollars

The Panama Papers show politicians and mining, oil and gas interests benefit from secrecy and dubious multimillion dollar transfers

By

In this story

  • Twelve of 17 companies under investigation by authorities in Italy in relation to a $10 billion oil and gas deal in Algeria were created by Mossack Fonseca
  • Italian authorities called one offshore company “a crossroads of illicit financial flows”
  • Dozens of companies created by Mossack Fonseca have been involved in law suits or public allegations of wrongdoing, according to an ICIJ analysis

When he wasn’t aboard his yacht, Farid Bedjaoui held court in the Bulgari Hotel in Milan, a renovated 18th-century palace nestled between the botanical gardens and the La Scala theater. Over five years, Bedjaoui’s hotel tab there exceeded $100,000.

In the plush rooms and the granite-lined lobby, Bedjaoui met with Algerian government officials and executives from Saipem, the Italian energy giant. Their agenda, according to witnesses later interviewed by Italian prosecutors: arranging some $275 million in bribes to help the energy company win more than $10 billion in contracts to build oil and gas pipelines from the North African desert to the shores of the Mediterranean.

To shift the bribe money between countries, Bedjaoui used a cluster of offshore companies that helped him shield the transactions from scrutiny, Italian prosecutors claim. Twelve of the 17 shell companies linked to Bedjaoui were created by Mossack Fonseca, the Panama-based law firm that is at the center of the Panama Papers scandal, a review of the law firm’s internal records by the International Consortium of Investigative Journalists and other media partners has found.

articles/00Africa/160725-resources-01.jpg Italian investigators described one of those companies, Minkle Consultants S.A., as a “crossroads of illicit financial flows” that channeled millions of dollars from subcontractors to an array of recipients whose identities are still being untangled. Prosecutors allege Bedjaoui used one company set up through the law firm to funnel as much as $15 million to associates and family members of Algeria’s then-energy minister.

The cross-border bribery scandal is one of dozens of cases in Africa in which companies created or administered by Mossack Fonseca have played a role in oil, gas and mining deals that have spawned public allegations of tax dodging, corruption, environmental destruction or other misconduct. In all, ICIJ’s review identified 37 companies within the Panama Papers that have been named in court actions or government investigations involving natural resources in Africa.

Ventures that drill or dig for oil, gas, diamonds, gold and other resources have long been dogged by evidence that contracts are often secured through bribery and other corrupt tactics that benefit a few and harm average citizens. Suspect mining and energy deals are usually organized through secretive companies and hard-to-trace bank accounts, corruption experts say.

“Companies may be given access to lucrative extractive projects because their owners are politically connected, or because their owners are willing to engage in questionable deals aimed at generating quick profits for a few rather than benefits for wider society,” Fredrik Reinfeldt, former prime minister of Sweden and now head of the Extractive Industries Transparency Initiative, told ICIJ.

He said the use of anonymous companies makes it harder to prevent money laundering and corruption because it allows wrongdoers to “hide behind a chain of companies often registered in multiple jurisdictions.”

ICIJ’s review of Mossack Fonseca’s internal records shows that the Panama-based law firm is a major provider of secrecy to companies involved in extractive industries. The firm’s internal files include more than 1,400 companies whose names refer to mining, minerals, oil, petrol or gas. Other less explicitly named companies – including the 12 companies allegedly used by Bedjaoui in the Algerian energy deal – also played roles in the extractive sector, the files show.

articles/00Africa/160725-sierraleone-04.jpgMossack Fonseca’s files reveal offshore companies that were established to own, hold or do business with petroleum, natural gas and mining operations in 44 of Africa’s 54 countries. Many of them are controlled by politicians, their family members and business associates. Often, the oil, gas, gold and diamonds formed beneath the earth’s surface over millions – even billions – of years are traded by shadow companies that have existed for months.

Companies created and assisted by Mossack Fonseca include at least 27 subsidiaries of one of the world’s biggest gold producers, the mining behemoth AngloGold Ashanti and its predecessor. AngloGold told ICIJ it complies with relevant tax laws and that its offshore companies held investments and allowed it to “mitigate ‘double taxation.’”

Mossack Fonseca declined to answer detailed questions for this story. It told ICIJ that “our firm, like many firms, provides worldwide registered agent services for our professional clients (e.g., lawyers, banks, and trusts) who are intermediaries. As a registered agent we merely help incorporate companies, and before we agree to work with a client in any way, we conduct a thorough due-diligence process, one that in every case meets and quite often exceeds all relevant local rules, regulations and standards to which we and others are bound.”

The law firm added: “Filing legal paperwork to help incorporate a company is a very different thing from establishing a business link with or directing in any way the companies so formed. We only incorporate companies, which just about everyone acknowledges is important, and something that’s critical in ensuring the global economy functions efficiently.”

Saipem, the Italian energy company, told ICIJ it is “fully cooperating” with prosecutors and it has “implemented significant managerial and administrative restructuring measures.” External consultants reviewed the company’s books, Saipem said, and “found no evidence of payments to Algerian public officials through the brokerage contracts or subcontracts examined.” In February 2016, an Algerian court found a Saipem subsidiary guilty of fraud, money laundering and corruption in obtaining contracts from Algeria’s national oil company, Sonatrach.

Criminal charges have been filed against Bedjaoui by Italian authorities. Prosecutors allege that he inflated contracts for the benefit of Algerian officials, adding a standard cut for himself, which earned him the nickname “Mr. 3 Percent” after police found the ratio scrawled on Bulgari Hotel stationery during a raid.

articles/00Africa/160725-resources-03.jpgBedjaoui, the nephew of a former Algerian foreign minister, is currently living in a Beverly Hills-inspired gated community in Dubai. He did not reply to repeated requests from ICIJ for comment.

In previous responses to the media, his lawyers have denied he was involved in any wrongdoing. They insist that, as a thirty-something management graduate, he could never have wielded enough influence among Algeria’s political, military and business elites to coordinate a $275-million-dollar bribery scheme.

The Saipem-Sonatrach bribery case fits a pattern in Africa and other developing regions, where countries with the richest natural endowments often lose the most money offshore.

Between 2004 and 2013, Algeria, home to the second-largest oil reserves in Africa, lost an average of $1.5 billion annually through tax avoidance, bribery, corruption and criminality, the research group Global Financial Integrity estimates. Across the continent, the United Nations estimates at least $50 billion each year goes unaccounted for due to illicit money flows.

Oil-rich Nigeria, for example, routinely tops the list of African nations from which billions of dollars are siphoned each year. Mossack Fonseca’s files show the law firm’s former customers included three oil ministers, senior national oil company employees and two former state governors later convicted of laundering oil-tainted wealth.

British and U.S. investigators said Diepreye Alamieyeseigha, governor of Nigeria’s oil-rich Bayelsa State from 1999 to 2005, used money skimmed from public funds, including government oil contracts, to buy a home in Rockville, Maryland, and four homes in London held by an offshore company set up through Mossack Fonseca.

Alamieyeseigha was arrested on U.K. money laundering charges during a visit to London in 2005, but later reportedly slipped out of the country dressed as a woman. He returned to Nigeria, where he was impeached and removed as governor. He served a short prison term but in 2013 was pardoned by President Goodluck Jonathan. Alamieyeseigha died in 2015.

Nigeria’s current president, Muhammadu Buhari, has called on world leaders to do more to help African nations fight money laundering and shine light on offshore hideaways.

“Every dollar siphoned through dirty deals and corruption to offshore tax havens makes the livelihood and survival of the average African more precarious,” Buhari said in a speech delivered at an anti-corruption summit in London one month after the release of Panama Papers.

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Ensuring anonymity

In 2005, Algeria announced that its enormous gas reserves were open for business. At stake was the opportunity to help build the first direct route from largely untapped gas reserves in the heart of the Algerian desert to Europe’s energy-hungry market. It was an important move for Algeria, a country with an unsteady economy that relies heavily on oil and gas revenue.

Executives from China, France, Britain, Spain and Japan flew into Algiers to submit bids.

Saipem emerged as one of the big winners. Between 2006 and 2009, the Italian company – which bills itself as “one of the world leaders” in drilling and pipelines – won seven contracts to lay hundreds of kilometers of pipelines and canals and to build treatment plants capable of processing 100,000 barrels of oil a day.

The flurry of activity in Algeria was matched by the expansion of Bedjaoui’s offshore network.

Bedjaoui, who is French, Canadian and Algerian, earned his business management degree in Montreal, then worked in his family’s coffee-importing venture before landing at a Dubai-based oil and gas investment firm with a valuable North African client list.

By 2002, Bedjaoui had used Mossack Fonseca to open a Swiss bank account for his company Rayan Asset Management. A Swiss tax lawyer then went on a buying spree on the Algerian’s behalf, ordering pre-existing “shelf” companies in Panama and the British Virgin Islands.

Mossack Fonseca’s background checks on Bedjaoui in 2008 and 2009 revealed nothing suspicious, the law firm’s internal files show. Bedjaoui didn’t make it easy; he used his Canadian passport to open some bank accounts and his Algerian ID to open others.

For 11 years, Mossack Fonseca worked for Bedjaoui and half a dozen of his family members, friends and associates. Into this world Bedjaoui brought his wife and brother-in-law, relatives of Algeria’s energy and water ministers, the CEO of Algeria’s government-controlled oil and gas company and Saipem’s in-country Algeria manager. Italian prosecutors later said the close-knit web of kinship led them to suspect that many of the companies created though Mossack Fonseca were used “for corrupt payments or for improper personal enrichment.”

It was, according to investigators, a network of graft and slush funds organized in hotel lobbies and coffee bars in Paris and Milan and on yachts in the Mediterranean. Outside the Bulgari Hotel, attendees exchanged secret cell phone numbers to keep in touch; it wasn’t to “exchange Christmas wishes”, an Italian judge wryly suggested years later.

In setting up his offshore companies, prosecutors allege, Bedjaoui chose countries with secrecy rules “that ensure the anonymity of the shareholders” and further obscured the paper trail by scattering money into 16 bank accounts in Dubai, Algeria, Singapore, London, Hong Kong, Switzerland and Lebanon.

articles/00Africa/160725-resources-05.jpgAccording to prosecutors, a company linked to Bedjaoui, Collingdale Consultants Inc., was used to divert as much as $15 million to associates and family of Chekib Khelil, Algeria’s energy minister from 1999 to 2010. A witness in the Italian case later recalled overhearing Khelil describe Bedjaoui as “like a son.”

In 2013, Khelil, a graduate of Ohio State who lived for many years in Maryland, was briefly placed on Interpol’s wanted list. Khelil returned to Algeria after authorities withdrew corruption charges they had leveled against him.

Reached by telephone by ICIJ, Khelil said he did not have the time to speak and hung up.

Official suspicions about Bedjaoui’s role in Algerian energy deals first became public in February 2013. Months later, Canadian police seized Bedjaoui’s assets in Montreal and French authorities raided Bedjaoui’s apartment on a tree-lined avenue in Paris. French police later reportedly seized a 43-meter yacht and paintings by Warhol, Miró and Dali.

The investigations into Bedjaoui’s activities and assets made headlines in Algeria, Canada and Italy. But Mossack Fonseca remained unaware of its customer’s legal issues for much of 2013.

Heather Lowe, an attorney with Global Financial Integrity, an anti-corruption group based in Washington, D.C., said that offshore middlemen have economic incentives “not to know what the companies they are forming are going to be used for. If they know too much, they might have to turn away business. … As a result, there’s often no gatekeeper to prevent illicit money from entering the financial system.”

‘Mandatory high-risk cluster’

International standards and laws in many countries generally require that financial middlemen like Mossack Fonseca screen their clients to make sure they’re not involved in wrongdoing. They are also required to take extra steps to check up on clients who are “politically exposed persons” – government officials or their family members or associates.

In its written procedures, Mossack Fonseca acknowledges that transactions involving industries linked to oil, gas and mining carry high risks for money laundering and other crimes.

The law firm classifies the mining industry as a “mandatory high-risk cluster” and requires workers to do extra background searches on anyone involved in digging, drilling, trading and exporting natural resources.

But documents within the Panama Papers show Mossack Fonseca employees often fail to conduct adequate checks on clients involved in extractive industries and in some cases offer services that make it difficult for government authorities to identify the players behind offshore companies and natural resources deals.

In 2014, Mossack Fonseca offered to provide a stand-in shareholder to shield the real owner of a phosphate mine who said he wanted to “stop the chain” of “additional enquiry” into the company’s ownership by Tanzanian authorities. In 2013, a Mossack Fonseca employee asked colleagues for a “quick answer” to help Elísio Figueiredo, a former Angolan ambassador to the United Nations, bank $26 million from the sale of his shares in a mining company. Figuerido’s nationality and high profile might be problematic, one colleague noted, but Mossack Fonseca kept alive the possibility of sending an employee to visit a bank in Hong Kong and open an account in his place. It’s unclear from the records whether that plan was carried out.

Figueiredo could not be reached for comment.

In June 2011, a Mossack Fonseca employee wrote to her superiors to report a problem. Acting under pressure from an English law firm, the employee noted, Mossack Fonseca had made “an exception” to its anti-money-laundering practices.

In ​2010, ​the employee explained, ​Mossack Fonseca created two companies and offered its own employees as stand-in shareholders without first learning the identity of the true owner. “Within one month,” the employee wrote, the firm learned that the companies’ owner was “a Mr. Dan Gertler who is an Israeli diamond dealer under investigation for bribery in the Congo and involved in the ‘blood diamond’ business. His name is plastered all over the internet.”

Some of the companies Mossack Fonseca had incorporated for Gertler were under investigation in the British Virgin Islands, the employee added.

Despite these issues, Mossack Fonseca did not immediately resign as the British Virgin Islands agent for Gertler’s companies, the employee wrote, but retained him as a customer “under the auspices of trying to obtain as much due diligence as possible in order to look like we had done something in this area and then resigning afterwards.”

Amid concerns that Panamanian authorities would soon investigate, Mossack Fonseca ended its relationship with Gertler’s companies.

A representative for Gertler told ICIJ that he is not aware of any investigation by Panamanian or BVI authorities into his companies in the DRC. “Offshore companies have never been used to hide” ownership information, the representative said.

The representative declined to comment “on what would appear to be baseless and defamatory allegations made by an employee of a firm, which we didn’t ultimately do business with, in a private email.” Gertler’s companies have invested approximately $100 million in the DRC, the representative said.

In a written response to ICIJ, Mossack Fonseca said it follows “both the letter and spirit of the law. Because we do, we have not once in nearly 40 years of operation been charged with criminal wrongdoing. We’re proud of the work we do, notwithstanding recent and willful attempts by some to mischaracterize it.”

‘Modus operandi’

Mossack Fonseca’s due diligence methods appear to have fallen short in the case of Bedjaoui, the wheeler-dealer at the center of the Algerian bribery affair.

The law firm’s internal emails suggest that Mossack Fonseca did not become aware of Bedjaoui’s involvement in the Saipem-Sonatrach scandal until September 2013. By chance, an internet search relating to another client turned up information that Bedjaoui was under investigation in connection with the case. One of the law firm’s employees reported that Bedjaoui was “suspected of being one of the main protagonists of this scandal.”

Mossack Fonseca told British Virgin Islands officials that it could not provide contact information for its own employees who had served as place-holder directors for some of the companies suspected of being involved in the alleged bribery scheme. Rosemarie Flax, Mossack Fonseca’s managing director in the BVI, acknowledged in an internal email that not having “this basic information on employees is totally embarrassing” and put the law firm at risk of a fine.

Mossack Fonseca reported Bedjaoui and his network to BVI authorities in 2013, but it continued processing paperwork for another one of his companies, Rayan Asset Management, until at least November 2015.

U.S. authorities are reportedly examining three New York homes worth more than $50 million bought by Bedjaoui, including one Central Park-Fifth Avenue condominium acquired for $28.5 million. The U.S. Department of Justice provided Italian investigators records showing that a Delaware company linked to the global asset hunt transferred $26 million from the Bank of New York Mellon to JP Morgan Chase to help complete the purchase of the condominium.

“The investment of the proceeds of bribery in real estate in the United States is a typical modus operandi of the criminal group attributable to Bedjaoui,” Milan’s public prosecutors said in a letter to U.S. authorities in March 2015. The prosecutors sought U.S. help to obtain ownership records and information on the origin of the funds used to buy properties in Rockville and Potomac, Maryland, that prosecutors suspect were purchased with bribe-tainted money.

In February, a court in Algeria fined and jailed 19 people and companies in the first phase of prosecutions tied to the Saipem-Sonatrach scandal. Across the Mediterranean Sea, an Italian court handed down a prison sentence to a former Saipem executive, Tullio Orsi, who accepted a plea bargain to avoid trial.

Orsi told prosecutors he met for discussions at least three times at Milan’s Hotel Bulgari, including one with Bedjaoui.

On another occasion, while relaxing on a boat moored off the Spanish coast, Orsi testified, Bedjaoui offered him $10 million.

Bedjaoui, Orsi says, told him that “there were others like me that he helped financially and he had pleasure doing it.”

Contributors to this story: Leo Sisti and Lyas Hallas

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