CABEI Sues Former President for Extortion

(Reuters) – The Central American Bank for Economic Integration (CABEI) announced on Thursday that it has filed a lawsuit in U.S. district court against its former president, Dante Mossi, accusing him of attempted extortion and abusing his position.

The Honduras-based development bank’s allegations against Mossi, who led CABEI from 2018 to 2023, include violations of racketeering laws, breach of fiduciary duty, market manipulation, and breach of contract, according to a statement from the bank.

CABEI chose not to renew Mossi’s tenure last year, citing concerns about his leadership and character, a decision reflected in the lawsuit.

In a response to the lawsuit, Mossi expressed surprise and stated that it lacked merit. He mentioned, “My management at the bank was completely audited,” adding, “I’m not afraid.”

A 2023 investigation by the Organized Crime and Corruption Reporting Project found that under Mossi’s direction, CABEI funded infrastructure projects plagued by corruption allegations, with loans reportedly used to pay bribes.

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

Mossi claims that CABEI’s lawsuit is a reaction to a case he filed asserting the bank owes him $6,000. He is seeking over $3 million in damages and legal fees in his lawsuit.

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