The Mozambique scandal is poised to widen for Credit Suisse – U.S. prosecutors believe they have a case against the Swiss bank.

Prosecutors in New Yorks's Eastern District in New York confronted Credit Suisse to lay out their case against the Swiss bank in a Mozambique corruption case, «Reuters» reported on Monday, citing two justice sources. The officials reached the conclusion after three ex-Credit Suisse investment bankers pleaded guilty in U.S. court. 

An U.S. case against the Zurich-based bank would represent a considerable escalation in the scandal for Credit Suisse. The Swiss bank ran bonds together with Russia's VTB for the coastal African nation meant to build, for example, a tuna-fishing fleet, patrol boats, and dockyard, but funds were allegedly diverted elsewhere.

Money Diverted 

At least $200 million of the  $2 billion total was diverted – to the Credit Suisse bankers, and allegedly to politicians and middlemen in Mozambique as well as executives at Privinvest, a shipping firm. After Mozambique defaulted in 2018, the matter morphed into a major crisis because the Swiss loans were not revealed to other creditors and the International Monetary Fund.

It isn't clear whether prosecutors will bring a case against Credit Suisse, which told «Reuters» that it continues to cooperate with all investigations. The bank faces a Swiss criminal complaint in Switzerland as well as scrutiny from its home regulator, Finma.

Key Actor Acquittal

In December, a U.S. court found a Privinvest executive not guilty of three conspiracy charges. Jean Boustani and Privinvest, his employer, had been accused of paying kickbacks related to the bond deals.

Three ex-Credit Suisse bankers – Andrew Pearse, Detelina Subeva, and Surjan Singh – testified against Boustani. The trio also pointed finger's at Boustani's boss, Iskandar Safa, a Franco-Lebanese billionaire who controls Privinvest, a Beirut-based ship-builder, as well as another executive.

The heavily-indebted African nation is asking a British court to order Credit Suisse to guarantee the repayment of Eurobonds worth $727 million, and seeking debt relief on bonds due in 2023.