The law firm of Mossack and Fonseca, whose global money laundering and tax evasion facilitation program has been exposed in the Panama Papers, was also apparently involved in the Financial Pacific/Petaquilla Gold Mine insider trading scandal, reportedly, according to individuals who have access to the information gleaned from MF emails, and documents, given to certain media by whistleblowers.
For those not familiar with the Financial Pacific case, the participants, relying upon inside information, purchased huge amounts of shares of Petaquilla Mining stock, which soon thereafter, based upon the public release of favorable information, soared. The fraudsters then took obscenely high profits; the trades were effectuated using the Financial Pacific brokerage house.
Certain of the Mossack firm's clients were reportedly privy to the inside information and the movement of their funds through accounts which it opened for those clients, to purchase Petaquilla stock, was allegedly accomplished by MF staff, at cooperating banks, through Financial Pacific.
We have previously covered the dominant role in Financial Pacific's purchases of shares of Petaquilla stock, for clients, by Gary James Lundgren, the American expat trader whose securities licenses have recently been revoked by FINRA, and who is now barred, for life, from trading in securities, in the United States. Lundgren's connections with Mossack and Fonseca, and those of its clients who traded on inside information, has not yet been publicly released by the teams of journalists who have been reviewing the MF material, but several Panama insiders believe that he handled many of the illegal trades for MF clients, and that he may have provided some of the cash needed for the large purchases of stock.
|Gary James Lundgren|
Only when the complete treasure trove of data is released will we know the true extent of the Mossack and Fonseca firm's involvement in the massive securities fraud, which was perpetrated upon innocent investors who purchased Petaquilla shares, at vastly inflated prices, from MF clients, who had inside information, ahead of the investing public.