The traders who illegally used inside information to take massive profits in the Petequilla Mines scandal will not be charged, according to a reliable source in the Republic of Panama. Using the Financial Pacific brokerage house to acquire, and later sell, their holdings, the fraudsters who participated will not now be subject to criminal prosecution in Panama City.
The individuals who made the illegal profits include:
(1) Former President of Panama, Ricardo Martinelli.
(2) Most of Martinelli's ministers and cabinet members, and his sons.
(3) The Alaskan expat & fraudster, Gary Lundgren a/k/a Gary James Lundgren.
(4) The vast majority of the leaders of Panama's Middle Eastern organized crime syndicate.
The victims, who were mainly Canadian and American investors, who purchased the gold mining stock at grossly inflated prices, after information regarding favorable mine discoveries was made public, lost everything, when the stock tanked, upon the subsequent release of negative, more realistic news. The fraudster had previously made major purchases of the stock, based upon their access to non-public information, reportedly made available to them by then-President Martinelli.
It is believed that the reason for the "hands-off" policy on criminal prosecution is the fact that members of the present, so-called reform Varela government, also took illegal profits, and their role would be exposed in any serious criminal prosecution.
The case demonstrates that the government system in place in Panama will protect its fraudsters, and ignore victims who are foreign nationals. Thus should be taken into consideration, when considering making any financial investment, or any sort, in the Republic of Panama, opening any business enterprise there, extending credit of any type, or deciding whether to advise a client to reside or retire there.