Cablegate: Usg Advocacy for American Beneficiaries Of

VZCZCXYZ0000
RR RUEHWEB

DE RUEHZP #2129/01 3032158
ZNR UUUUU ZZH
R 302158Z OCT 06
FM AMEMBASSY PANAMA
TO RUEHC/SECSTATE WASHDC 9260
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHME/AMEMBASSY MEXICO 3312
RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASH DC

UNCLAS PANAMA 002129

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB/CBA
STATE ALSO FOR L/CID

E.O. 12958: N/A
TAGS: EINV EFIN CASC PM
SUBJECT: USG ADVOCACY FOR AMERICAN BENEFICIARIES OF
EXPATRIATE ESTATE

THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE
ACCORDINGLY.

1. (SBU) SUMMARY AND ACTION REQUEST. Post requests
Department's guidance on the extent of advocacy services to
be provided for Amcit beneficiaries and Amcit executor
alleging corruption and delayed due process in the
Panamanian courts, during the settlement of the estate of
Wilson Charles Lucom. The late Mr. Lucom renounced his U.S.
citizenship in 1995. Post questions the extent to which we
should extend advocacy services to his Amcit heirs and
executor, if at all, given Lucom's status as a third-country
national at the time of his death and given that the primary
beneficiaries of Lucom's will would be poor Panamanian
children. End summary and action request.

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Expatriated Amcit Estate Mired in Panama's Murky Judiciary
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2. (SBU) Post's Consular section confirmed that Department
records show Wilson Charles Lucom DOB 14 October 1917 New
Jersey, renounced his U.S. citizenship in July of 1995.
Mr. Lucom died in Panama on 2 June 2006. Mr. Lucom's will
states that he is a citizen of St. Kitts. The will
appoints Richard Lehman, Christopher Rudy and his
Panamanian wife Hilda Piza Lucom as executors of the
estate. Mrs. Lucom is the daughter-in-law of former
Panamanian President Harmodio Arias and the niece of former
Panamanian President Mireya Moscoso. Mr. Lucom's will
leaves the bulk of his substantial estate ($30 million) to
the Wilson C. Lucom Trust Fund Foundation with a mandate
to administer nutritional programs for the poor children of
Panama.

3. (SBU) In an October 11 letter to the Ambassador,
Mr. Lehman alleges that despite his appointment as the sole
Executor of Mr. Lucom's estate by Panama's Fourth Civil
Circuit and First Judicial Circuit courts on 5 July 2006,
he has been deprived of virtually all of his powers to act
on behalf of the estate. Mr. Lehman claims that when he
attempted to consolidate Mr. Lucom's accounts into one
single account in the name of the trust, Mrs. Lucom filed
criminal charges alleging theft. Mr. Lehman states that
Mrs. Lucom filed a petition to remove Mr. Lehman as
executor. Mr. Lehman claims he witnessed bearer shares for
a $5.8 million corporation of Mr. Lucom's removed from Mr.
Lucom's effects. Mr. Lehman alleges that the majority of
his powers as Executor have been suspended by the
Panamanian court without stated cause.

4. (SBU) Mr. Lucom bequeathed about $1 million per year to be
divided among several Amcit beneficiaries, primarily the
children and relatives of his former wife. He bequeathed a
total of about $700,000 per year to be divided among Mrs.
Lucom and her Panamanian children and relatives. Upon the
death of his widow, the Wilson C. Lucom Trust is authorized
to disburse $1 million to the Mayo Clinic and another
$400,000 to be divided among various nieces and nephews
(presumed to be Amcits).

5. (SBU) Mr. Lehman requests Embassy assistance in ensuring
due process for Mr. Lucom's Amcit beneficiaries. Thus far,
Post has asked that the Amcit beneficiaries verify their
citizenship and to indicate their desire for USG advocacy
in this matter.

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Comment: Post Questions Whether/How USG Advocacy Applies
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6. (SBU) This case could potentially generate significant
controversy because of the sizable amount of money at stake,
the multi-nationality of the heirs, Panama's weak judiciary,
and the primarily altruistic intent of Lucom's will towards
the poor children of Panama and the Mayo Clinic. However,
the fact that the late Mr. Lucom renounced his U.S.
citizenship puts the USG in an awkward position vis a vis his
Amcit beneficiaries. Advocating on their behalf would also
entail going up against Panama's judicial environment of
corruption and cronyism. It would also set a precedent for
USG advocacy on behalf of Amcit attorneys representing third
country nationals in Panama.

7. (SBU) As American citizens look increasingly to overseas
retirement destinations and possible legal expatriation as
part of their asset protection and tax minimization
strategies, we may well see additional cases of this type.
Therefore, we would appreciate Department's guidance on the
extent to which USG advocacy would be warranted under such
circumstances.
ARREAGA

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