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UNITED STATES OF AMERICA
BEFORE THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON. DC
)
)
)
) Order of Prohibition Issued Upon
) Consent Pursuant to the Federal
) Deposit Insurance Act,
) As Amended
In the Matter of
Eduardo Del Rio
Institution-Affiliated
Party of
1
Deutsche Bank
New York, New York
)DocketNo. 02-008-E-I
)
1
)
A State Member Bank
WHEREAS, pursuant to Sections 8(e) and (i)(3) of the Federal Deposit
Insurance Act, as amended (12 U.S.C.
5 1818(e) and (i)(3) (the "FDI Act")), the Board of
Governors of the Federal Reserve System (the "Board of Governors") issues this Order of
Prohibition (the "Order") against Eduardo Del Rio ("Eddie Del Rio"), a former employee
and institution-affiliated party, as defined in Sections 3(u) and 8@)(4) of the FDI Act (12
U.S.C.
5 1813(u) and 5 1818@)(4)),
of Deutsche Bank, AG ("DB"), New York, New
York, a State-chartered bank and a member of the Federal Reserve System, relating to
Del Rio's violations of law, unsafe and unsound banking practices, and breaches of his
fiduciary duty to DB and its customers in connection with his embezzlement of
approximately $ 8.5 million in client funds for his personal use; and
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WHEREAS, by affixing his signature hereunder, Del RIOhas 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 12 U.S.C. 5 1818 or 12 C.F.R. Part 263, or otherwise (a) to the issuance
of a notice of intent to prohibit on any matter set forth in this Order ; @) to a hearing for
the purpose of taking evidence with respect to any matter implied or set forth in this
Order; (c) to obtainjudicial review of this Order or any provision hereof; and (d) to
challenge or contest in any matter the basis, issuance, validity, terms, 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
constitutingan admission by Del Rio of any allegation made or implied by the Board of
Governors in connection with this proceeding, and solely for the purpose of settlement of
this matter without protracted or extended hearings or testimony:
IT IS HEREBY ORDERED, and Del Rio hereby agrees that, pursuant to
Sections 8(e), (i)(3), and (i)of the FDI Act, 12 U.S.C. $8 1818(e), (i)(3), and 0) that:
1.
Del Rio, without prior written approval of the Board of Governors
and, where necessary pursuant to Section 8(e)(7)(B)of the FDI Act,
(12 U.S.C. 3 1818(e)(7)(B)),another Federal financial institution regulatory agency, shall
not:
(a) Participate in any manner in the conduct of the affars of any
institution or agency specified in Section 8(e)(7)(A) of the FDI Act,
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(12 U.S.C.
0 l818(e)(7)(A)), including, but not limited to, Deustche Bank,its successors or
assigns, or any other insured depositary institution or holding company thereof;
@) solicit, procure, transfer, attempt to transfer, vote or attempt to
vote any proxy, consent, or authorization with respect to any voting rights in any
institution described in Section 8(e)(7)(A) of the FDI Act;
(c) violate any voting agreement previously approved by any
Federal banking agency; or
(d) vote for a director, or serve or act as an institution-affiliated
party, as defined in Section 3(u) of the FDI Act, such as an officer, director, or employee in
any institution described in Section 8(e)(7)(A) of the FDI Act.
2. All communicationsregarding this Order shall be sent to:
(a)
Mr. Brian Peters
Senior Vice President
Federal Reserve Bank ofNew York
33 Liberty Street
New York, NY 10045
and a copy to:
Martin C. Grant, Esq.
Legal Department
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
Brian E. Maas, Esq.
Franfurt Garbus b i t Klein & Slez, PC
488 Madison Avenue
New York, NY 10022
3. Any violations of this Order shall separately subject Del Rio to
appropriate civil or criminal penalties or both under Sections 8(i) and (i) of the FDI Act, 12
U.S.C.
$5 1818(b)(i) and (i).
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4. The provisions of this Order shall not bar, estop, or otherwise prevent the
Board of Governors, or any federal or state agency or department from takrng any other
action affecting Del Ria, provided, however, that the Board of Governors shall not take
any further action aganst Del Rio based upon information presently known by the Board
of Governors relating to the matters addressed by this Order.
5. Each provision of this Order shall remain effective and enforceableuntil
stayed, modified, terminated, or suspended in writing by the Board of Governors.
By order of the Board of Governors of the Federal Reserve System,
effective this/%
day of
b'c,c 1ph+JO02.
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
Eddie Del Rio
'JSecretafy of the Board
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