(Reuters) – The Central American Bank for Economic Integration (CABEI) has filed a lawsuit against its former president in a U.S. district court for allegedly violating a slew of market regulations, it said on Thursday.
CABEI’s claims against former Executive President Dante Mossi include violations of the Racketeering Influenced and Corrupt Organizations Act (RICO), breach of fiduciary duty, market manipulation, tortious interference and breach of contract, it said in a statement.
Last year, the Organized Crime and Corruption Reporting project published an investigation into CABEI under Mossi’s tenure, saying it funded major infrastructure projects which were later engulfed in scandal and that its loans were used to pay bribes.
In 2021, nine of CABEI’s directors wrote a letter warning of the development bank’s sinking financial situation and raising transparency concerns, which went unattended, the OCCRP reported.
Mossi, his tenure was between Dec. 1, 2018 and Dec. 1, 2023, has previously defended his management of the development bank.
“It’s incredible what my colleagues at the CABEI have gotten themselves into,” Mossi posted on X in reaction to the suit on Thursday.
Mossi did not immediately respond to a Reuters request for comment.
