Update: Citibank has returned more than $250,000 to GALA Hispanic Theatre after the theater in Columbia Heights fell victim to a bank account hack earlier this month.

The banking group said in a statement it appreciates “how difficult it can be for an organization to be defrauded. While the circumstances of each case are different, upon careful review we’re pleased to honor this claim and credit our client with its lost funds.”

After the hack, GALA Executive Director Rebecca Medrano filed an FBI report and was worried it could take months for the bank to complete its investigation and release the funds from Bank of America (the hacker transferred the stolen money to a BOA account in New York).

Medrano thanked local media and the theater’s community of supporters for publicizing the issue. She says the more than $48,000 GALA received in public donations during the aftermath of the hack helped the theater pay its workers. The theater company also borrowed emergency funds with approval from the theater’s board of directors, but it will return that money now that Citi has credited its funds, Medrano said.

“It could happen to anybody,” Medrano says of the hack, adding that Citi is “honoring our commitments to the community” by returning the funds. GALA had already announced it would no longer complete wire transfers online and that it has set up new bank accounts.

Scammers exploit wire transfers because they happen quickly and cannot be stopped once the funds are sent, Citi tells DCist/WAMU, adding that they are “exceedingly difficult to recover.”

Original:

GALA Hispanic Theatre is asking for community support after losing more than $250,000 in a bank account hack earlier this month, according to owner Rebecca Medrano.

The theater’s accountant was alerted to the problem when she was kicked out of GALA’s online banking account while handling payroll for the theater’s employees. “It happened in 10 seconds,” Medrano says. “[The accountant] freaked and closed the account and opened it again a minute later, and saw the money was gone.”

The money was transferred to a Bank of America account in New York, according to a statement Medrano submitted to the FBI.

Medrano filed a report with CitiBank, the theater’s bank, and says she’s gone in-person almost every day since the transaction took place, demanding answers and asking for assistance returning the funds. The bank’s fraud department has escalated her case, she says, but she was told the bank would need to complete its investigation before returning the funds, which could take months.

When reached for comment, CitiBank did not provide an estimate for when the funds could be restore to GALA.

“Citi takes the security of our clients’ accounts seriously, and we are working to resolve this matter,” a Citi spokesperson said.

In the meantime, the theater in Columbia Heights is operating on emergency funds approved by the theater’s board of directors. Medrano is asking for donations to keep the theater up and running through the end of its current season. GALA’s next show, The Palacio Sisters, is opening Feb. 1.

“We’re going to open, and we have enough to get us through [February], that’s it,” Medrano says. “We’ll hopefully go on and resolve this issue.”

On X (formerly Twitter), GALA said it’s received an “outpouring of love and support” in the aftermath. The theater is continuing to accept donations through its emergency fund, writing online that “no gift is too small or too large.”

As of Monday, the theater had raised over $48,000 in donations through the emergency campaign, according to a GALA newsletter. The funds will help the theater pay its cast and crew for its run of The Palacio Sisters. GALA also says it has set up new bank accounts, will no longer initiate wire transfers online, and will work with federal authorities to increase its security practices.

https://twitter.com/TeatroGALA/status/1748524543461790172

In the midst of the troubles, Medrano is receiving Theatre Washington’s Victor Shargai Leadership Award, which every year recognizes individuals or groups within the D.C. theater community whose creativity and outstanding leadership strengthen the local industry. The award ceremony takes place Monday evening, when nominees for this year’s Helen Hayes Awards will also be announced. Last year, GALA took home 11 awards just after the death of the theater’s co-founder and Rebecca’s husband, Hugo Medrano.

Gustavo Ott, a celebrated Venezuelan playwright and director, was named the theater’s succeeding artistic director in December.

This story has been updated with information about GALA’s emergency fund and steps the theater is taking to increase security.