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UMTED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, DC
In the Matter of
1
1
PEDROCABERA
1
A Former Employee and
Institution-Affiliated
Party of
Docket No.
01-006-B-I2
)
1
1
)
1
Order to Cease and Desist
Issued Upon Consent
Pursuant to the Federal Deposit
Insurance Act, as Amended
1
Banco Mercantil, C.A., S.A.C.A.,
New York Agency
New York, New York
1
1
1
1
WHEREAS, pursuant to sections 8(b) and (i)(3) of the Federal Deposit
Insurance Act, as amended (the "FDI Act") (12 U.S.C. $8 1818(b) and (i)(3)), the Board
of Governors of the Federal Reserve System (the "Board of Governors") issues this Order
to Cease and Desist (the "Order") against Pedro Cabrera ("Cabrera"), a former employee
and institution-affiliated party, as defined in sections 3(u) and 8(b)(4) of the FDI Act (12
U.S.C. $$ 1813(u) and 1818(b)(4)), of Banco Mercantil, C.A., S.A.C.A., New York
Agency, New York, New York ("Mercantil"), a branch of Banco Mercantil, C.A.,
S.A.C.A., Caracas, Venezuela, based on Cabrera's alleged violations of law and unsafe
and unsound prgctices in connection with the structuring of deposits of cash and
monetary instruments by private banking customers of Mercantil resulting in violations
ofthe Cunencv 2nd Foreign Transactions Reponing .ict (3 1 U.S.C.
4 5511 5 %.:I;
and
WHEREAS, by affixing his signature hereunder, Cabrera has consented to
the issuance of this Order by the Board of Governors and has consented to comply with
each and every provision of this Order, and has waived any and all rights he might have,
pursuant to section S ofthe FDI Act (12 U.S.C. $ 1818) or 12 C.F.R. Part 263, or
otherwise: (a) to the issuance of a notice of charges on any matter set forth in the Order;
(b) to a hearing for the purpose of taking evidence with respect to any matter implied or set
forth in this Order; (c) to o b m judicial review of this Order or any provision hereof; and
(d) to challenge or contest in any manner the basis, issuance, terms, validity, effectiveness,
or enforceability of this Order or any provision hereof.
NOW, THEREFORE, prior to the taking of any testimony or adjudication
of or finding on any issue of fact or law implied or set forth herein, and without this Order
constituting an admission of any allegation made or implied by the Board of Governors in
connection herewith, and solely for the purpose of settlement of this proceeding without
protracted or extended proceedings:
IT IS HEREBY ORDERED, pursuant to sections S(b) and (i)(3) of the
FDI Act that:
1.
At all times that Cabrera is an institution-affiliated party of any institution
or agency specified in section S(e)(7)(A)ofthe FDI Act (12 U.S.C.S ISlS(e)(7)(A)),
including, but
;1
1101limited
to, any insured depository institution or U S . branch or agency of
foreign bank. CJbrera shall take such actions as are necessary and consistent with his
responsibilities as an institution-affiliated party to ensure that lie will ( a )comply with 1111
policies m d procadures of his employer 2s tliey pertain to his responsibilities: (b) 6nsakF
only In activities that are consistent with his fiduciary duties and with safe and sound
banking practices; and (c) comply fully with all applicable laws and regulations pertinent to
his responsibilities as an institution-affiliated party.
2.
All communications regarding this Order shall be sent to:
(a)
Nancy Bercoyici
Senior Vice President
Fedeial Reserve Bank of New York
33 Liberty Street
New York, NY 10045
and a copy to:
Jonathan I. Polk, Esq.
Legal Department
Federal Reserve Bank of New York
33 Liberty Street
New York. NY 10045
(b)
-
>.
Pedro Cabrera
c/o Ernest Atalay, Esq.
Jesus J. Peaa Esq. & Associates
88-19 Roosevelt Avenue
Jackson Heights, NY 11372
Any violations of this Order shall separately subject Cabrera to
appropriate civil penalties under section 8(i) of the FDI Act (12 U.S.C.
4.
9 1818(i)).
The provisions of this Order shall not bar, estop, or otherwise
prevent the Bo6rd of Governors, or any federal or state agency or department from taking
any other action affecting Cabrera. provided, however. that the Board of Governors shall
not take any further action against Cabrera based upon information presently known by the
Board of Governors relating to the matters set fonh herein.
5.
This Order, and each and every provision hereof. is and shall remain
fully effective and enforceable until stayed, modified, terminated, or suspended in writing
by the Board of Governors.
By order of the Board of Governors effective t h i x h d a y of
..
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
v
Secretary of the Board
200: