MIAMI – The use of offshore accounts and shell companies -- a trick that is not available to the hoi polloi -- is increasingly coming under scrutiny. Several news organizations worldwide continued to reveal the secrets of the ultra-rich Wednesday.
Fusion's investigative unit released a long list of celebrities who were clients or whose relatives were clients of Mossack Fonseca, the Panama-based law firm, according to the International Consortium of Investigative Journalists' data. An anonymous source released the data, now known as "The Panama Papers," to a German reporter.
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The list of celebrities linked to offshore accounts includes Juanes, who lives in Miami's Key Biscayne, and Lionel Messi, who David Beckham is reportedly trying to convince to join Miami United, his Major League Soccer franchise.
Juanes' representative John Reilly said Juanes was not going to comment on the matter, because "Juanes himself was not named in any way in the report" and the link "pertains to the unrelated personal dealings of a family member and not those of Juanes' or his foundation."
After reports that Puerto Rican reggaeton singer Daddy Yankee, a regular in Miami, had an offshore network, he released a statement saying "it is false that we have some relationship with the firm."
The massive leak of records detail how low-tax states like Panama and in the United States' states of Nevada, Delaware and Wyoming attract wealth. While politicians are held to a higher standard, artists may not be. Nonetheless, the spotlight over their financial secrets fuels a debate over whether or not the legal practice of routing money to a corporation registered to a low-tax country should be legal.
In fairness, public figures who are making millions from the working class may be expected to contribute to their country's economy -- especially during struggling times. And on the issue of criminality, law enforcement often finds the secrecy of the corporations as an obstacle to targeting money laundering.
Roberto Carlos, Brazil's most beloved singer, is a shareholder of Happy Song, an offshore company, according to Brazil's UOL. Carlos wasn't so happy Wednesday. His spokesperson said the company was also registered in Brazil and there were no illegalities involved. But although not illegal the embarrassing exposure could prompt ethical questions.
The public's reaction to the "Panama Papers" revelations appeared to have already scared Pedro Almodovar, a Spanish movie director who was linked to an off shore company he co-owned with his brother. He canceled his appearance to publicity events and also missed the premiere of his new movie "Julieta" on Wednesday.