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. 
 
--------------------------------------------- ------------- 
Expatriated Amcit Estate Mired in Panama's Murky Judiciary 
--------------------------------------------- ------------- 
 
¶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. 
 
--------------------------------------------- ----------- 
Comment: Post Questions Whether/How USG Advocacy Applies 
--------------------------------------------- ----------- 
 
¶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