Federal Reserve Bars Former Banco Popular Employee Over Alleged $65,747 Customer-Fund Scheme

The Federal Reserve Board announced the enforcement action against Gadiel J. Rosario-Alvarado on August 27. Rosario-Alvarado formerly worked as a Telephone Banking Consultant for Banco Popular de Puerto Rico, a state member bank headquartered in San Juan. According to the Federal Reserve’s consent order, the alleged activity occurred between 2023 and 2025 and involved at least 50 unauthorized transactions.

Fed Says Customer Money Was Used to Pay Credit Cards

The Federal Reserve alleges that Rosario-Alvarado debited money from Banco Popular customer accounts and used those funds to pay down credit-card balances belonging to himself and a relative. The order puts the amount allegedly misappropriated at approximately $65,747. Banco Popular terminated Rosario-Alvarado on June 11, 2025, after he admitted to conducting some of the unauthorized transactions, according to the Federal Reserve’s order.

The regulator characterized the conduct as violations of law or regulation, unsafe or unsound banking practices or breaches of fiduciary duty. The Fed also said the conduct involved personal dishonesty or willful or continuing disregard for the safety and soundness of the bank. Rosario-Alvarado consented to the order without admitting or denying the Federal Reserve’s allegations.

The Order Bars Him From Participating in Banking

The enforcement action is an Order of Prohibition issued under Section 8(e) of the Federal Deposit Insurance Act. Under its terms, Rosario-Alvarado is prohibited, without prior written regulatory approval, from participating in the affairs of an insured depository institution or other organizations covered by the order. The restrictions also prohibit certain activities involving voting for directors or serving as an institution-affiliated party at covered financial institutions. The order remains in effect unless the Federal Reserve stays, modifies, terminates or suspends it in writing. The Federal Reserve publicly announced the action on August 27, although the consent order itself became effective on August 24.

What Banco Popular Customers Should Know

The Federal Reserve’s public order focuses on Rosario-Alvarado’s alleged conduct and the regulatory action against him. It does not allege in the order that Banco Popular directed the unauthorized transactions. The publicly available order also does not identify the affected customers or disclose individual transaction amounts. Customers should therefore avoid assuming that an unexplained transaction on their own account is connected to this particular enforcement case. The case does, however, provide another reminder of why consumers should regularly review checking, savings and credit-card activity rather than relying solely on automated fraud alerts.

Anyone who spots a withdrawal, transfer or payment they don’t recognize should contact their financial institution promptly, ask for information about the transaction and follow the bank’s process for disputing unauthorized activity. Consumers shouldn’t wait for an enforcement announcement to investigate suspicious transactions. Reviewing account activity regularly can make it easier to identify an unfamiliar withdrawal or transfer before additional transactions occur.

Federal Regulators Can Take Action Against Individual Bank Employees

The Federal Reserve routinely publishes enforcement actions involving institutions as well as individuals affiliated with regulated banks. A prohibition order is significant because it targets the individual’s ability to participate in the banking industry rather than merely documenting an employment dispute between a bank and former worker.

In this case, the Federal Reserve alleges that the conduct extended from 2023 through 2025 and involved a series of at least 50 customer-account debits totaling approximately $65,747. The order resolves the Federal Reserve’s administrative enforcement matter with Rosario-Alvarado. Because he consented without admitting or denying the allegations, the allegations in the order should not be described as findings from a criminal conviction or a trial establishing his guilt.

Consumers who want to review the enforcement action can find the Federal Reserve’s announcement and consent order through the central bank’s official enforcement-action records.

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Amanda Blankenship

Amanda Blankenship is Chief Editor at District Media, Inc., leading content strategy, quality assurance, and editorial operations across high-traffic personal finance sites like SavingAdvice.com and CleverDude.com. A Wingate University graduate with a BA in Communications (Journalism focus), she brings over a decade of experience in digital publishing, writing, and team leadership in the personal finance space.