[JURIST] The US Department of Justice (DOJ) [official website] has begun criminal investigations into US citizens connected to tax avoidance claims arising from the Panama Papers [official website], media reported Tuesday. US Attorney for the Southern District of New York Preet Bharara [official profile], well known for his prosecutions against financial fraud, sent a letter [Guardian report] requesting the cooperation of the International Consortium of Investigative Journalists (ICIJ) [official website], the group responsible for coordinating the major leak. Bharara has already begun investigating some of the 200 or more US citizens mentioned in the Panama Papers. This development follows recent comments from President Barrack Obama, who expressed his concerns regarding the economic impact of global tax evasion and the difficulty of prosecuting the harmful conduct.

World leaders and other high profile individuals are hiding billions in off-shore accounts, according to reports that cite confidential documents leaked [JURIST report] from Mossack Fonseca [official website], an international law firm in Panama. The documents, coined the “Panama Papers” [Guardian backgrounder] by the ICIJ, purportedly show that numerous politicians, celebrities and other wealthy individuals have hid money utilizing the legal services of Mossack Fonseca. The Panama Papers include 11 million documents allegedly illustrating how the firm laundered money and helped their wealthy clients avoid tax consequences and dodge sanctions. It is reported [BBC report] that 12 heads of state are among those implicated by the Panama Papers. Mossack Fonseca has denied any wrongdoing, claiming they were the victim of a data breach and that they have not engaged in any illegal activity. Earlier this month Panamanian prosecutors raided [JURIST report] the firm seeking evidence of money laundering and financing terrorism related to the leak.