THE LUCOM CASE 2009 – How The Expatriate Community Can Help

Dear Panamanian Expatriates:

I would like to use this blog to establish a dialogue regarding the Wilson C. Lucom case. I welcome and encourage your comments and help.

I would like to introduce myself to you as the American lawyer who is the executor of the Estate of Wilson C. Lucom and in addition, I would like to introduce myself on a professional level.1/

I know that many of you have been following the Lucom case and I feel that now that I have completely cleared my name in Panama of illegal criminal charges raised against me it would be a good time to bring you up to date and start a dialogue with you so that together we may be able to help stop corruption of the Panamanian legal system and get these malnourished kids their money.2/

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1./ A lot has been written about this case. You will find my most recent Report to the Attorney General of Panama that was distributed to her in April of 2008 on the Website devoted to this case:

English version: www.lucomchildren.com

spanish version: www.lucom-ninospobresdepanama.com

The Report is on the Website together with an extensive document Exhibit package. While those of you in Panama might by now be used to the type of treatment I received to one degree or another, I think you will see the Report spells out a very difficult picture. Since many readers of the Report have said “this can't be true”, I felt it necessary to attach the Exhibit list on the Website which proves with written documents all that is said in the Report.

2./ On a professional level, I have been a Federal income, estate and gift tax lawyer in both U.S. government and in private practice for almost 40 years. During this time I have concentrated in the area of international taxation. I define this area of the tax law as the “taxation of non resident aliens immigrating to and investing in the United States and Americans immigrating from and living or investing outside of the United States”. Please see www.lehmantaxlaw.com for a more complete description of my professional qualifications and law practice.

Since there have been many changes in the tax laws affecting expatriates that I am familiar with, I will also use this blog to try to provide a resource for tax and related issues in that area of the law.

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THE LUCOM CASE 2009 – How The Expatriate Community Can Help

Much has happened since the delivery of the Report mentioned in Footnote 1. At the time of the delivery of that Report, I was still subject to many false criminal filings against me and an illegal arrest warrant that kept me out of the country. Furthermore I was not aware of the full extent of the on going attempt, (now exposed), to steal all of the assets of the Lucom Estate so that even if the will contest was won, the Estate would be empty of assets and holding nothing but debt.

The Lucom case has been an education in corruption in Panama. However, all of the following will show great progress has been made.

Recent Developments

1. The Supreme Court Ruling of October 8th, 2008.
(Attached Exhibit 1)

On October 8, 2008, in a ruling released in November, the Panamanian Supreme Court ruled that an arrest warrant issued against me in Panama was illegal and unconstitutional and that there was no proof of any underlying crime. This ruling dismissed a criminal charge brought against me by Hector Infante, Hilda Lucom's lawyer, personally. It was a false allegation that I “extorted” Mr. Infante.

The Supreme Court ruling was the last in a series of three Panama Court opinions that overturned14 false criminal charges brought against me by the Arias Family and two false unconstitutional arrest warrants brought against me by the Arias Family. Even though the Supreme Court opinion dealt only with the extortion case, the Supreme Court ruling made several important findings relevant to Lucom's Will that are very positive and indicate their belief that the Will is valid.

2. The Request for Investigation by the National Transparency Council against Corruption Dated November 25, 2008.
(Attached Exhibit 2)

The Report noted in Footnote 1, has resulted in two unique consequences. On November 25th the National Transparency Council against Corruption, a special Presidential Commission established to root out corruption in Panama, requested that the Panama Supreme Court open an investigation of the corrupt legal abuse against me by the Arias Family in this case.

On December 2nd of this year, the Panama Supreme Court opened such an investigation and has requested that all of the files in this case be transferred to the Panama Supreme Court for its review. All of the tactics and ramifications of this case will now be reviewed by an independent body that is making its decision in the presence of the whole country.

3. The Official Formation and Filing of Red De Apoyo A Los Ninos Pobres de Panama. (Attached Exhibit 3)

In December of 2008, the Articles of Red De Apoyo A Los Ninos Pobres de Panama were officially filed in Panama. This is a new Panamanian charitable foundation that will be a “United Fund” of all of Panama's charities that apply and qualify for the benefits of Lucom's Will. This Foundation is open to all of Panama's charities and we have already started signing up charitable participants from all over Panama. I have given my written pledge, as the Executor, that after paying bequests to the beneficiaries and all Estate expenses I will vote to contribute Lucom's charitable funds to this new charity.

The new charity has received the support of six very prominent founding members and will be open to all charities that qualify to benefit from Lucom's gift. This is a major victory and not only proves that I have no designs on Lucom's fortune but now most of the important well meaning people in Panama will act as the spokespeople for the children. It forever puts to rest the claim by the Arias Family that my purpose was to steal Lucom's fortune. The new group of spokespeople will strive hard to help end the unnecessary starvation of Panama's children. We are actively recruiting as many charities to participate as possible and intend to have charities from all over the country involved very shortly.

There finally is a Panamanian voice who can cry out against the abuse by the Arias family of Panama's children. The contest no longer involves me personally. It is now between Hector Infante and the Arias family against the charities and the people of Panama.

Even with the validation of Lucom's Will, I still expect delaying tactics by the Arias Family in Panama. However, now the Country of Panama at many levels of its society knows that the delaying tactics are resulting in the unnecessary deaths of Panamanian children from malnutrition. Therefore, we are prepared to deal with future delays once the Supreme Court has ruled.

The Theft of the Assets

While I was busy overturning multiple false criminal charges in Panama against me, two attempts were made to steal all of the Estate assets.

A. Theft of Hacienda Santa Mónica. Hacienda Santa Mónica, a 7,000 acre plot of land in Panama on the Pacific Ocean, is the main asset of the Estate. The land has been appraised at $62 million as the minimum value. The professional appraisal of the land by the court-appointed Administrator was $144.0 million. Hacienda Santa Mónica has been stripped of its value over the last two years through criminal and fraudulent real estate agreements.

Furthermore, in the absence of administration on the ranch, crops have disappeared, illegal leases have been signed, bank accounts have been pillaged, etc.

Key to Hacienda Santa Mónica's value is that the entire Hacienda Santa Mónica property is adjacent to the beach on the Pacific Ocean. In spite of criminal laws barring the sale of this property, the entire area fronting the beach (100 acres of property) has been purchased for a trivial amount by an unknown group through a foreign corporation. They have damaged Hacienda Santa Mónica. All transactions thereon are criminal in nature. SEVERAL DENUNCIAS HAVE BEEN FILED TO HALT THE DESTRUCTION OF THE PROPERTY.

B. Theft of Valores Globales S.A. The second asset that was stolen was the share certificates of a personal corporation of Lucom's. Valores Globales S.A. is a British Virgin Islands corporation that belonged to Lucom at the time of his death.

Valores Globales owns $4 million in cash and $2 million in promissory notes. The shares for this corporation were stolen by Hilda from Lucom's files. She alleges they were a last minute gift from Lucom. Florida and British Virgin Island laws have assisted in protecting this asset of the Estate which is valued at $6.0 million. In Florida there is an injunction that bars the Arias Group from using the Valores Globales assets. I was able to obtain this injunction in defense of the assets of the Estate.

Present Situation

As it stands now, the Lucom Will has been approved by the Panama Probate Court and approved by the Panamanian Superior Court. The case has been before the Panama Supreme Court for approximately one and one-half years and we are expecting a ruling in the near future.

There, of course, has been a great deal of lobbying of the Panama Supreme Court by Hector Infante, Esq. and the Arias family. However, we have finally gotten to the point where the truth of the matter is obvious.

Now that there is the support of the Panama charities, that together with the previous approvals of the Lucom's Will by the Panamanian lower courts and the overturning of all of the false charges and arrest warrants against me signals that the tide has turned.

At this point the poor children of Panama need nothing other than a ruling on the law in Panama. There is no need to lobby for a desired result, the Supreme Court need only adhere to the law. However, the longer this case continues, the more deaths from malnutrition mount in Panama. Certainly any help that can be provided by the expatriate community to lobby for a speedy resolution by the Panama Supreme Court of this case can only help this situation. It would be much appreciated.

Very truly yours,

RICHARD S. LEHMAN
rlehman@lehmantaxlaw.com

Millions of Dollars in Food Aid Hanging By a Thread

U.S. Attorney Warns That Wilson Lucom’s $100 Million Donation to Children’s Charities in Panama At Risk of Vanishing, Thanks to Theft and Corruption

BOCA RATON, FL - The largest donation ever made in the history of Panama is on the verge of disappearing, thanks to an incredible case of corruption and government malfeasance in this Central American country.In 2006, Wilson Lucom, an American expatriate, willed the bulk of his estate – now estimated to be worth over $100 million – to be donated to help eradicate hunger-related deaths among poor children in Panama. However, a corrupt legal system and the refusal of the government to intervene has allowed this donation to be delayed for over two years by a multitude of frivolous lawsuits, while the family of Lucom’s widow, Hilda Arias, and their team of lawyers have launched a methodical effort to steal and partition the estate.

“The Wilson Lucom case is the most remarkable example of injustice I have ever seen in my three decades of practicing international law,” said Richard S. Lehman, a Florida-based attorney who serves as chief executor of the Lucom estate. “This country will never outlive the shame it deserves if the Arias family and their lawyers are allowed to steal this money from the poor children of Panama.”

After more than a year of being kept out of the country, threatened with arrest, being listed on Interpol’s red notice alert as a dangerous criminal and having to take extraordinary methods to stop the theft of over six million dollars in his client’s assets, Lehman has recently discovered that the Arias family, its lawyers, an affiliated real estate group and several California-based companies have been secretly destroying the only item of value still left in the multi-million dollar estate that was supposed to be donated to children’s charities – the 7,200 acre Hacienda Santa Monica.

This highly coveted parcel of land, located one hour outside of Panama City on the west coast, with roughly three miles of beachfront property, was appraised as high as $144 million by the formal administrator in the case.

During the two years that the Wilson Lucom will dispute has continued in the Panamanian courts, 100 acres of beachfront property in the Hacienda Santa Monica have been secretly partitioned – using a clever ploy involving several fishermen who were told to claim tenant rights – and sold to several California investment groups. These land sales are illegal, but nonetheless they will wreck the value of the estate and lead to years of litigation to resolve the estate’s true ownership rights. The partitioned hacienda will also prevent the original developer from continuing with plans to buy the property, in which the proceeds would have gone to charity – either in full, or by incorporating a lifetime real estate tax on the developed properties.

The multi-million dollar Lucom estate is now “hanging by a thread,” according to Lehman, as it is on the verge of becoming completely worthless. These illegal land sales could ruin any chance for the estate to donate millions of dollars, as Lucom wished, to the “poor children of Panama.”

Childhood malnutrition is a major problem in Panama, and this multi-million dollar donation is badly needed. According to UNICEF:

• Panama is one of two Central American countries that have experienced a significant rise in childhood malnutrition in recent years


• Roughly 19-percent of kids are affected


• More than half of indigenous children are severely underweight


• More than half of children under five live in poverty


• 2,000 children under the age of five die each year

More information at 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. In addition to U.S. law, Lehman is an expert on Panama's complicated and problematic legal system. Lehman is a graduate of Georgetown Law School and has a master's degree in taxation from NYU. Web site: www.lehmantaxlaw.com .

U.S. Attorney Richard Lehman, Announces Panama Supreme Court Overturns Illegal Arrest Warrant in Dispute over Food Aid to Poor Kids

BOCA RATON, Fla., Nov 21, 2008 (BUSINESS WIRE) -- An illegal Panamanian arrest warrant against U.S. attorney Richard Lehman has been overturned by that country's Supreme Court in a recent ruling that highlights the growing tensions between American interests and the country's alleged corruption-plagued lower courts, Lehman announces.

In its ruling, the Panamanian Supreme Court overturned a November 2007 ruling by the First Judicial Circuit of Panama that wrongly charged Lehman with defamation, slander and extortion in the high-profile Wilson Lucom case. The charges were made by a Panamanian attorney in an alleged effort to prevent Lehman from re-entering the country to defend Lucom's multi-million dollar donation to poor children in Panama. This is the second of two false arrest warrants and the last of 14 criminal charges that Lehman has had to overcome in his effort to defend his client's will in Panama.

"The Supreme Court's ruling, which adjudicates me of any wrongdoing, is a vindication of my legal crusade in Panama to defend the will of a deceased American expatriate against corruption and to protect his wish to donate millions in food aid to help the poor children of Panama," Lehman said.

In 2006, Wilson Lucom, an American expatriate living in Panama, willed the bulk of his estate -- now estimated to be worth over $100 million -- to be donated to help eradicate hunger-related deaths among poor children in Panama. However, due to aggressive efforts by Lucom's widow, Hilda Arias, and her attorneys -- including a multitude of lawsuits, criminal charges, arrest warrants and a false red notice alert on Interpol -- this badly needed food aid has been indefinitely delayed and is in danger of vanishing completely.

Lehman also recently uncovered alleged evidence of a widespread conspiracy by the Arias family and others to illegally claim ownership of a 7,200 acre beachfront estate that represents the bulk of Lucom's donation to charity.

According to Lehman, the Wilson Lucom legal saga is a prime example of the legal misconduct prevalent in the Panamanian courts which is often used against American expatriates and other foreign citizens, costing millions of dollars each year in legal expenses, fines, bribes and illegal detainment.

For more information about the Wilson Lucom case, visit www.lucomchildren.com, www.youtube.com/expatriatejustice or www.lehmantaxlaw.com.

SOURCE: U.S. Attorney Richard Lehman

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