Federal Reserve Board Issues Prohibition Order Against Former Banco Popular de Puerto Rico Employee

The Federal Reserve Board has issued an enforcement action against Gadiel J. Rosario-Alvarado, a former employee of Banco Popular de Puerto Rico. This action, dated August 27, 2026, involves a prohibition order following Rosario-Alvarado's misappropriation of customer funds during his tenure at the bank. The order was issued with Rosario-Alvarado's consent, effectively barring him from participating in the affairs of any federally insured financial institution.

Details of the Enforcement Action

The enforcement action against Gadiel J. Rosario-Alvarado was issued under Docket No. 26-044-E-I by the Board of Governors of the Federal Reserve System. The action is pursuant to Section 8(e) of the Federal Deposit Insurance Act, as amended. Rosario-Alvarado, who served as a Telephone Banking Consultant at Banco Popular de Puerto Rico from 2023 to 2025, was found to have misappropriated approximately $65,747 from bank customers. This was achieved through a series of at least fifty unauthorized transactions, where funds were debited from customer accounts to pay down his and his relative’s credit card debts.

Consent and Waiver of Rights

Rosario-Alvarado consented to the issuance of the prohibition order, agreeing to comply with all its provisions. By doing so, he waived his rights under 12 U.S.C. § 1818 and 12 C.F.R. Part 263, which include the right to a notice of intent to prohibit, a hearing for evidence, judicial review, and the ability to challenge the order's basis, issuance, terms, validity, effectiveness, or enforceability.

Prohibitions Imposed by the Order

The order explicitly prohibits Rosario-Alvarado from participating in any manner in the conduct of the affairs of any institution or agency specified in Section 8(e)(7)(A) of the FDI Act. This includes any insured depository institution, holding company of such an institution, or any subsidiary thereof. Additionally, Rosario-Alvarado is barred from soliciting, procuring, transferring, or attempting to transfer any voting rights in such institutions, as well as from serving as an institution-affiliated party, such as an officer, director, or employee.

Potential Penalties for Violation

Any violation of the prohibition order could subject Rosario-Alvarado to civil or criminal penalties under Sections 8(i) and (j) of the FDI Act. The order remains fully effective and enforceable until it is expressly stayed, modified, terminated, or suspended in writing by the Board of Governors.

Further Actions and Communications

The Federal Reserve Board reserves the right to take further action against Rosario-Alvarado based on facts currently known, although no further action will be taken on matters addressed by this order. Communications regarding the order are to be directed to Richard M. Ashton, Deputy General Counsel, and David Williams, Senior Associate General Counsel, at the Board of Governors of the Federal Reserve System in Washington, D.C.

This enforcement action underscores the Federal Reserve's commitment to maintaining the integrity of financial institutions and holding individuals accountable for actions that compromise the safety and soundness of these institutions.