Federal Reserve Board Issues Consent Prohibition Order Against Former Banco Popular de Puerto Rico Employee
Key Takeaways
- •The Federal Reserve Board issued a consent prohibition order on August 27, 2026, against Gadiel Rosario-Alvarado, a former Banco Popular de Puerto Rico employee, tied to the misappropriation of customer funds.
- •The former employee agreed to the order's issuance, resolving the matter without a contested administrative proceeding.
- •The order bars the individual from participating in the affairs of any federally insured depository institution or holding company, generally remaining in effect unless the Board formally modifies or terminates it.
- •Prohibition orders of this kind are typically issued under Section 8(b)(3) of the Federal Deposit Insurance Act, and misappropriation-related cases recur in the Federal Reserve's enforcement docket.
- •No enforcement action against Banco Popular de Puerto Rico itself accompanied the release; the bank is the principal banking subsidiary of Popular, Inc. (Nasdaq: BPOP).
The Board of Governors of the Federal Reserve System announced on Thursday, August 27, 2026, that it has executed an enforcement action against a former employee of Banco Popular de Puerto Rico, headquartered in San Juan, Puerto Rico.
The action is a consent prohibition order against Gadiel Rosario-Alvarado, a former employee of Banco Popular de Puerto Rico. According to the Board's announcement, issued for release at 11:00 a.m. EDT, the order relates to the misappropriation of customer funds. The 'consent' designation indicates that the individual agreed to the order's issuance, resolving the matter without a contested administrative proceeding.
Prohibition orders are among the Federal Reserve's standard supervisory enforcement tools. Under such an order, an individual is barred from participating in the affairs of any federally insured depository institution or holding company, effectively removing them from the banking industry; the bans generally remain in effect unless the Board formally modifies or terminates them. The Federal Reserve has authority to bring enforcement actions against insured depository institutions, their holding companies, and affiliated parties, including current and former institution-affiliated parties, for violations of laws or regulations, unsafe or unsound practices, and breaches of fiduciary duty. Prohibition orders of this kind are typically issued under Section 8(b)(3) of the Federal Deposit Insurance Act, the federal statute governing bank enforcement. Actions tied to misappropriation of customer funds are a recurring category in the Federal Reserve's enforcement docket, which spans institutions and individuals nationwide.
Banco Popular de Puerto Rico is the principal banking subsidiary of Popular, Inc. and one of the largest financial institutions operating in Puerto Rico. Popular, Inc. (Nasdaq: BPOP) traces its origins in Puerto Rican banking to 1893. Thursday's announcement addressed the individual's conduct; no accompanying action against the institution was included in the release.
The Board noted that additional enforcement actions can be searched here. The full order is available as a PDF attachment.
For media inquiries, the Board directed requests to its press office at 202-452-2955.
Source: Federal Reserve Board press release, August 27, 2026
