The Federal Reserve Board has issued a formal prohibition order against Nicolás Pérez Alvarado, a former employee of Banco Popular de Puerto Rico, following his conviction for embezzling funds from the bank. The order, issued on March 27, 2025, prevents Pérez Alvarado from participating in the operations of any federally insured financial institutions, effectively barring him from working in the banking industry.
Pérez Alvarado, who served as deputy operations manager at a Banco Popular branch, pleaded guilty to ten counts of aggravated illegal appropriation and embezzlement in July 2024. The crimes involved the misappropriation of $19,800 from the bank between 2021 and 2022. On September 23, 2024, a Puerto Rico court convicted him and sentenced him to five years of probation.
As part of the legal proceedings, Pérez Alvarado has repaid the full amount of the stolen funds to Banco Popular. However, his actions were deemed to be a serious breach of fiduciary duty and violation of banking regulations. The Federal Reserve’s prohibition order outlines that Pérez Alvarado’s conduct involved personal dishonesty and a willful disregard for the safety and soundness of the bank.
The prohibition means that Pérez Alvarado is barred from engaging in activities related to any institution that is governed by the Federal Deposit Insurance Act (FDI Act), including banks and financial holding companies. He is also prohibited from soliciting or transferring any voting rights in these institutions or serving in any capacity as an officer, director, or employee of such institutions without prior written approval from the Federal Reserve Board.
The order, which was consented to by Pérez Alvarado, is a part of the settlement of the case, aimed at avoiding extended litigation. By consenting to the order, Pérez Alvarado waived his right to challenge its validity or enforcement in the future.
The prohibition also notes that any future violations of the order could lead to civil or criminal penalties, further emphasizing the seriousness of Pérez Alvarado’s misconduct.
Key Facts:
- Nicolás Pérez Alvarado was convicted of embezzling $19,800 from Banco Popular de Puerto Rico.
- He has been sentenced to five years of probation by a Puerto Rico court.
- The Federal Reserve has issued a prohibition order preventing him from working in any federally insured financial institution.
- Pérez Alvarado has paid full restitution to the bank.
This case serves as a reminder of the importance of maintaining integrity within the financial sector and the consequences individuals may face when they fail to uphold those standards.
