The San Juan, Puerto Rico based lender’s legal troubles continue as FBI searches offices today.
At around 8:15 a.m. on Tuesday, agents from the Federal Bureau of Investigation entered the home offices of the beleaguered bank in order to collect documents and hard drives according to Special Agent Moises Quinones. While the Special Agent declined to give further details the agency did say that the office was raided due to “several ongoing investigations.”
Doral Financial‘s troubles with FDIC, NYSE
Doral Bank, which is part of Doral Financial Corporation, has been looking to sell of parts of its operations in order to meet and maintain capital requirements. The firm has not publicly stated what areas it was looking to sell when news was made public in July.
In a regulatory filing in October, Doral stated that the Federal Deposit Insurance Corporation downgraded it from the already poor “undercapitilized” rating. The FDIC told Doral that it needed to raise money “immediately” to order to find itself on the right side of a 2012 consent order. Alternatively, the bank at a minimum must put a contingency plan together for a liquidation, merger, or sale.
The firm is also at risk of being deemed non-compliant with listing standards on the NYSE according to a statement from the outfit earlier this month. In order to avoid this distinction the company must hold annual meeting in the limited days remaining in calender year 2014.
A spokeswoman for Doral Financial, Miriam Warren, stated that the FBI “have pursued the collection of certain information at the main offices of our institution.”
She added in a statement today that the bank is cooperating fully with law enforcement and “we look forward to sharing more on the focus of the investigation as we learn more.”
Doral Financial executive’s 2011 murder
The raid today was conducted by the FBI’s “white collar” crime unit but could still be related to the 2011 murder of a high-ranking Doral executive, Maurice Spagnoletti. While the FBI’s violent crime unit in San Juan is charged with that ongoing investigation, it would not be uncommon for them to work with agents dedicated to “white collar” crime.
Spagnoletti, executive vice president of mortgage and banking operations at Doral, died from multiple gunshot wounds he received in June 2011 on a highway in San Juan while driving home from work.
