Top Legal Risks for American Expatriates in Panama

BOCA RATON, FL – Panama is being called one of the most sought-after retirement destinations in the world, with over 30,000 Americans believed to already live there. But many in the U.S. have overlooked the serious legal risks posed by Panama’s corruption-plagued judicial system.

“There is often very little recourse for American expatriates in the Panamanian justice system, as it is highly susceptible to bribery and political interference” said Lehman, a U.S. attorney specializing in taxation and international law, who’s spent the last two years dealing exclusively with a high-profile legal case in Panama.

“There’s also a very low threshold for filing aggressive legal actions against foreigners, such as arresting persons in advance of a hearing and trial, or attaching preventive injunctions to an individual’s entire personal assets. This makes Americans extremely vulnerable in every civil case, regardless of its legitimacy.”

A number of international nonprofit groups have reported corruption levels in the Panamanian government and judiciary. Transparency International (www.transparency.org) ranks Panama 94th in the world in its 2007 Corruption Perceptions Index. The Heritage Foundation’s (www.heritage.org) 2008 Index of Economic Freedom gives Panama low ratings in two important categories: 31-percent for corruption and 30-percent for property rights.

According to Lehman, the top five legal risks facing expatriates in Panama are:

1. “Calumnia Y Injuria” – The country’s infamous defamation law is open to liberal interpretation and widely misused, particularly against foreigners.
2. “Preventive Injunctions” – The court system makes it easy for attorneys to file injunctions against a person’s assets, allowing them to be frozen with little due process.
3. “Ex Parte Proceedings” – Panamanian courts allow one party in a trial or civil suit to meet with judges and prosecutors without the presence of the opposing party. Private judicial proceedings without notice to the other party in the case. This means a party in a legal case may not have knowledge of all the actions being taken against them.”
4. “Preventive Detention” – The preventive detention law allows authorities to detain persons for long periods of time without any due process.
5. “Corruption” – Bribery, extortion and political interference are widespread.

Lehman has recently gained international recognition for his legal efforts in the Wilson Lucom case in Panama, for which he is fighting to ensure the validity of the American expatriate’s Panamanian will which gifted over $50 million to help eradicate childhood malnutrition in a country with a high mortality rate.

Millions of Americans are moving from the U.S. every year with no real knowledge of the lack of legal protections in other countries which could potentially put them in harm’s way. For more information, visit Lehman’s Web site at www.lehmantaxlaw.com or the Wilson Lucom case at http://www.lucomchildren.com

About Richard Lehman
A former senior attorney for the IRS, Richard Lehman is a prominent U.S. attorney specializing in taxation and international law. He is currently defending the Wilson Lucom will in Panama, which gifted $50 million to charity. In addition to U.S. law, Lehman is considered an expert on Panama’s complicated and problematic legal system, which often compromises the interests of U.S. businessmen, investors and retirees. Lehman is a graduate of Georgetown Law School and obtained his master's degree in taxation from New York University. Web site: www.lehmantaxlaw.com