Fed bans former bank employee over theft from customer’s safe deposit box

A former employee of Frost Bank in San Antonio, Texas, has entered into a consent and cease-and-desist order with the Federal Reserve that bars him from future service in any federally insured financial institution and requires him to authorize the release of funds for restitution related to his theft from a customer’s safe deposit box.

Under the Jan. 25 consent order, Raysol Villalobos (aka Ray Galvan), formerly a personal banker for Frost Bank, agreed to surrender and release, and execute the documents necessary to effect such surrender and release of, the $18,700 in funds seized from his safe deposit box to the bank as restitution.

This order follows one issued in March 2018 in which the Fed said Villalobos misappropriated approximately $31,712 from a bank customer’s safe deposit box and, in turn, caused the Bank to suffer a financial loss of $35,000 and posed legal and reputational risks to the bank.

The Fed said this customer was visually impaired and confined to a wheelchair; that Villalobos had selected a box for this customer that was in the bottom row and which the customer was unable to access without assistance and, among other things, swapped the customer’s key with another and used it and the bank’s corresponding key to access the customer’s safe deposit box and contents.

Federal Reserve Board issues enforcement action with former Frost Bank employee

January 2019 consent prohibition and cease-and-desist order

March 2018 order