Central American Development Bank Sues Former President in US, Accusing Extortion and Abuse of Power, Reports Reuters

The Central American Bank for Economic Integration (CABEI) announced on Thursday that it has filed a lawsuit against its former president, Dante Mossi, in a U.S. district court. The lawsuit accuses Mossi of attempted extortion and abuse of his position during his tenure as Executive President from 2018 to 2023.

CABEI’s allegations against Mossi include violations of racketeering laws, breach of fiduciary duty, market manipulation, and breach of contract. The bank’s decision not to renew Mossi’s term last year was reportedly based on concerns regarding his leadership and character, according to the lawsuit statement.

Mossi, a Honduran national, expressed surprise at the lawsuit, claiming it lacks merit. He stated that his management at CABEI had been thoroughly audited and emphasized that he was not afraid of the proceedings.

A 2023 investigation by a consortium of journalists revealed that under Mossi’s leadership, CABEI had funded infrastructure projects linked to corruption allegations, with loans purportedly used for bribery.

Founded in 1960, CABEI includes eight Central American countries among its members, as well as seven nations from outside the region.

Mossi contended that CABEI’s lawsuit is a response to his own legal action, in which he claims the bank owes him $6,000. He is seeking over $3 million in damages and legal fees related to this dispute.

In its complaint, CABEI stated that it refused to pay the $6,000 because Mossi allegedly used bank funds to hire an attorney to evaluate the decision not to retain him. The bank characterized Mossi’s lawsuit as part of “an unrelenting campaign of extortion” against its operations.