HomeNewsBriefPanama Papers Reveal Offshore Account of Guatemala Drug ‘Queen’
BRIEF

Panama Papers Reveal Offshore Account of Guatemala Drug 'Queen'

ELITES AND CRIME / 5 APR 2016 BY MICHAEL LOHMULLER EN

The Panama Papers data leak exposed an offshore account belonging to a Guatemalan drug trafficker and money launderer, providing intricate details into the shady dealings of Guatemala's prolific narco "queen."

A report by Univision highlights the involvement of Marllory Chacón Rossell, often referred to as the "Queen of the South," in an offshore company established by Panamanian law firm Mossack Fonseca. The report is based on documents leaked from Fonseca that are now collectively known as the Panama Papers.

A Florida court convicted Chacón -- described by the US Treasury Department in 2012 as a major Central American drug trafficker and Guatemala's "most active money launderer" -- of drug charges in May 2015. 

Univison details how Chacón was president of the offshore company Brodway Commerce Inc. between 2009 and 2010 -- a period during which US authorities estimate she laundered $4 million in drug proceeds in Panama.

At that time, Chacón's drug activities were not publicly known. Yet Univison reports two associates also involved with Brodway had known criminal involvement and links to financial scandals.

In November 2009, the month Chacón became Brodway's president, documents show the company reported a total capital balance of $12 million. The Guatemalan store Casa Vogue was listed as a client of Brodway's. The store's legal representative, María Corina Sáenz Lehnoff, was designated by the US Treasury Department in August 2012 as part of Chacón's money laundering network.

According to Univision, Mossack Fonseca's internal correspondence also indicates that Brodway's lawyer was Guatemalan national Francisco José Palomo Tejeda -- a former member of the Central American Parliament and Guatemala's Constitutional Court, as well as defense lawyer for various Guatemalan ex-presidents.

Documents show that Palomo, who was killed by assassins in Guatemala City in June 2015, is the one who made initial contact with Fonseca regarding the acquisition of Brodway Commerce, Univision reported.

InSight Crime Analysis

While Chacón's involvement in drug trafficking and illicit financial schemes is well-known, Univision's report offers a detailed look into the complexity of her money laundering activities. Indeed, the dizzying array of names and companies -- and the relationships between them -- speaks to the scope of Chacón's operations, and points to why she became such a successful money launderer.

SEE ALSO: Coverage of Money Laundering

That Chacón also had a relationship with Palomo Tejeda, a previously undisclosed fact, is further indication of how deeply enmeshed she was within Guatemala's upper class. Chacón has previously been linked to former Guatemalan Vice President Roxana Baldetti, and there are rumors Chacón donated $2 million to Baldetti's political party in 2011.

Meanwhile, the Panama Papers' revelations continue to roil the continent. In an ironic development, on April 4 the president of Transparency International Chile, Gonzalo Delaveu, resigned after leaked documents linked him to five offshore firms.

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

GUATEMALA / 18 OCT 2013

Police arrested two drug traffickers in northeastern Guatemala, but apparently subsequently lost both suspects, in an embarrassing case for Guatemalan…

ELITES AND CRIME / 3 SEP 2019

Honduras President Juan Orlando Hernández assumed the presidency as a so-called “crime fighter” that the United States could collaborate closely…

GUATEMALA / 9 DEC 2011

Guatemala’s murder statistics suggest that the country is on course to see only a slight rise in its homicide…

About InSight Crime

THE ORGANIZATION

Unraveling the Web of Elites Connected to Organized Crime

27 JUL 2021

InSight Crime published Elites and Organized Crime in Nicaragua, a deep dive into the relationships between criminal actors and elites in that Central American nation.

THE ORGANIZATION

InSight Crime’s Greater Focus on US-Mexico Border

20 JUL 2021

InSight Crime has decided to turn many of its investigative resources towards understanding and chronicling the criminal dynamics along the US-Mexico border.

THE ORGANIZATION

Key Arrests and Police Budget Increases Due to InSight Crime Investigations

8 JUL 2021

With Memo Fantasma’s arrest, InSight Crime has proven that our investigations can and will uncover major criminal threats in the Americas.

THE ORGANIZATION

Organized Crime’s Influence on Gender-Based Violence

30 JUN 2021

InSight Crime investigator Laura N. Ávila spoke on organized crime and gender-based violence at the launch of a research project by the United Nations Development Programme.

THE ORGANIZATION

Conversation with Paraguay Judicial Operators on PCC

24 JUN 2021

InSight Crime Co-director Steven Dudley formed part of a panel attended by over 500 students, all of whom work in Paraguay's judicial system.