Pandora Case: Prosecutors seek to maintain detentions, revoke house arrests in $42 million fraud investigation

Panama's First Specialized Anti-Organized Crime Prosecutor's Office has requested that the provisional detention of five defendants be upheld, while seeking the revocation of house arrest for two others implicated in a massive fraud scheme. The case involves an alleged network that defrauded over $42 million from the General Revenue Directorate (DGI) by manipulating the E-Tax system.

The prosecutor's office argued before the Superior Court of Appeals that maintaining the provisional detention for five individuals who appealed their sentences is necessary due to ongoing risks to the investigation. These risks include the potential tampering of evidence, the need for pending interviews, and the incorporation of crucial banking and corporate information related to affected legal entities. The two defendants whose house arrest orders are being challenged are Karen Pitty, the legal representative of one of the investigated companies, and Lupo González, a former DGI analyst.

During the hearing, eight other defendants who had appealed their provisional detention measures withdrew their appeals, indicating they will likely remain in custody. Prosecutor Emeldo Márquez detailed how the accused allegedly manipulated fiscal income, directing it to shell companies. These companies then transferred the funds to intermediary firms, which carried out the final fraudulent sales of tax credits to other companies and banks.

The First Superior Prosecutor's Office against Organized Crime continues to scrutinize the E-Tax system. Prosecutor Márquez indicated that new findings have emerged, suggesting the total amount defrauded could be higher than initially reported. The Superior Court of Appeals is expected to announce its decision on Thursday afternoon after reviewing the arguments presented by the prosecution and the defense.

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It is necessary to maintain the provisional detention of five people who request a less severe measure change and revoke the house arrest of Pitty and González because risks to the investigation persist.