The Panama Tax Fraud Scandal grew larger this week when Gabriel Martínez became the 22nd person charged in connection with a criminal network that allegedly manipulated the government’s e-Tax 2.0 system to steal fiscal credits worth approximately $40 million. Judge Clara Montenegro ordered Martínez held in provisional detention during a hearing on Thursday, September 10, one day after police apprehended him.
Prosecutor Elizabeth Carrión presented evidence linking Martínez to three shell companies used to move funds and place the stolen tax credits. The companies, Multiservicios Instant Express, Buzz Marketing 2.0, and Berajah Tikva & Company S.E., allegedly served as intermediaries in a scheme that operated inside the Dirección General de Ingresos (DGI), Panama’s tax authority.
Network Structure and Martínez’s Alleged Role
Investigators say Martínez served as treasurer of Multiservicios Instant Express and president of Berajah Tikva, while also maintaining connections to Buzz Marketing 2.0 through Héctor Luna, who appears as treasurer of that entity. Luna and Juan Omar Palacio Batista were arrested in June as part of Operation Pandora, the investigation targeting the tax credit fraud ring.
Prosecutor Dagoberto Alvarado previously described Palacio as a key connection point within the financial structure under investigation. Martínez allegedly used the three companies to capture up to $21 million in fiscal credits in coordination with DGI officials. Court documents indicate he made payments to government employees who facilitated the manipulation of the e-Tax 2.0 platform.
Evidence and Investigation Details on Tax Fraud Involvements
The prosecution’s case includes intercepted communications between network members detailing how the operation functioned. Testimony from Eduardo Silvestre, former head of Current Accounts at the DGI, and Rina Arza, another former DGI official, has provided additional details about Martínez’s participation. Both are cooperating with authorities.
The investigation, now spanning 91 volumes, reveals a multi-level structure. DGI employees altered the e-Tax 2.0 system to appropriate fiscal credits. Lawyers and operators created shell companies to temporarily hold the credits. A third group handled sales and distribution of proceeds. The scheme came to light following an anonymous complaint filed with the Public Ministry on May 2, 2025.
Legal Proceedings and Detention Ruling
Judge Montenegro determined that provisional detention was the most appropriate measure for Martínez, citing flight risk and potential evidence tampering. He faces charges of money laundering, document falsification, and corruption of public officials. The court’s decision reflects the seriousness of the alleged crimes and the ongoing nature of the investigation.
The Panama Tax Fraud Scandal represents a key significant corruption cases involving the country’s tax collection system in recent years. With 22 individuals now charged and losses estimated at $40 million, the case continues to expand as prosecutors pursue additional leads and potential suspects connected to the criminal network that operated within the DGI.