$$$ Millions & Corporations & Front Men in Panama: the Facts that Support the Case Against Héctor Brands

Héctor Brands, former congressman and former director of Pandeportes, was arrested early Tuesday morning, December 9, during an operation carried out by the National Police in conjunction with the Public Ministry in different parts of the country.  The investigation is based on intelligence reports provided by the UAF, which identified deposits of $27.9 million in bank accounts associated with Brands.  The former deputy and former director of Pandeportes would be accused of money laundering and unjust enrichment. 

The operation, carried out by the Second Prosecutor’s Office against Organized Crime, was executed simultaneously in 10 locations across the country during the early morning hours. It is related to the crimes of illicit enrichment and money laundering, and resulted in the arrest of 11 people, as well as the seizure of assets and funds.  The investigation stems from a company that allegedly obtained government contracts worth over $10 million. The events date back to 2019, when the former congressman and several family members were part of the company.

According to the investigation, after Brands’ election, the board of directors was modified to avoid declaring a potential conflict of interest. However, when the government payments were processed, the records still listed the defendants as the actual beneficiaries of the funds.  His lawyer, Victor Orobio, said that a Brands associate contacted him to warn him that his residence was being raided.  “We can deduce that Héctor Brands is in the same situation. We are heading to verify where he was apprehended to continue with due process,” he stated.  The former deputy and former director of Pandeportes would be accused of money laundering and unjust enrichment.  Orobio stated that he has not yet had access to the case file, or to any financial or audit reports.

“A person is being brought to trial in a completely defenseless state, because their defense has not been able to prepare to face accusations that the prosecution has kept secret for four months,” he questioned.  Brands was captured at his residence in the Clayton area. Currently, nine people have been arrested as a result of raids in Coclé, Panama City, and Panama West. Most of those arrested are relatives of Brands and his business partner, Elvys Rodríguez. Three other women are also under investigation.  During the raids, $5,000 in cash, high-end cars, and suspected illicit substances were seized.  The individuals will be brought before a judge in the coming hours. 

Pedro Meilán, part of Brands’ legal team, in statements to the media, agreed with Orobio, saying that they have not yet had access to the file, and hopes that today, after the Prosecutor’s Office’s proceedings, they will be able to receive the file.  He asserted that Brands owned companies and businesses before coming to power, one of which is linked to the investigation. Meilán stated that when the former congressman assumed office, he resigned from the company. He further clarified that the money he received was for previous contracts that had not yet been paid. Upon arriving at the DIJ, Orobio stated that there are two well-established and reputable companies with legitimate income and corporate clients.

“I honestly don’t know how the prosecutor will support the case.”  He assured that they have approached the Comptroller’s Office and the Public Prosecutor’s Office on different occasions and have demonstrated their roots in the community.  Regarding the luxury goods that were seized, Oribio said: “Let the prosecutor be serious, if I have my money I’ll treat myself to luxuries. If I didn’t steal the money, I’ll treat myself to luxuries.”  He went on to point out that the crime would be the source of the income, and that this income is legitimate, coming from recognized companies.  He added and defended the position that due process is not being respected in Panama, asserting that human rights are also being violated and that the procedure is not being respected.  After being apprehended, Brands was taken to a health center where he underwent tests to confirm his condition as part of the process. From there, he was taken to the facilities of the Directorate of Judicial Investigation (DIJ) in Ancón.

Case Details

In September it was revealed that the Public Prosecutor’s Office opened an investigation against the former deputy and former director of Pandeportes, Héctor Brands, for alleged money laundering and unjustified enrichment, following reports from the Financial Analysis Unit that detected million-dollar and unusual movements in personal accounts and companies linked to him. 

Financial alerts indicate deposits of approximately $27.9 million and withdrawals of $28.3 million, figures that led to the case being referred to the Prosecutor’s Office against Organized Crime, which is now carrying out the proceedings.  In the midst of the proceedings, Brands was denied entry to the United States and returned to Panama, a fact that heightened the scrutiny of the investigation. His defense maintains that he has not committed any wrongdoing and questions the lack of access to official documents and reports. 

The fact that Héctor Brands holds the position of public official doesn’t mean he can’t receive money from his private businesses. Do you think the Comptroller lives on his monthly salary? Of course not, he has to receive money from his private affairs,” he stated.