Schwab accidentally puts $1.2 million into woman’s account

It’s not quite the nearly $1 billion blunder that Citigroup Inc. made last summer, but Charles Schwab Corp. said it accidentally sent more than a million dollars to the Fidelity Brokerage Services account of a woman in Louisiana.

Schwab blamed an “issue created by a software enhancement” for erroneously transferring $1.2 million in February to the Fidelity account of Kelyn Spadoni, rather than the $82.56 she had requested, according to a lawsuit filed in federal court in New Orleans last month.

When the company realized the mistake and attempted to take the money back, it was gone and Spadoni wasn’t answering her phone, the bank said.

Spadoni, 33, of Harvey, Louisiana, was arrested earlier this week and fired from her job as a 911 dispatcher, nola.com and WVUE-TV reported, citing the Jefferson Parish Sheriff’s Office. Spadoni, who remains in jail, had used some of the money, most of which has been recovered, to buy a house and a 2021 Hyundai Genesis sport utility vehicle, according to the reports.

The sheriff’s office didn’t immediately respond to a request for comment on the case.

Schwab didn’t immediately respond to an email seeking comment on the suit.

While Schwab’s blunder is among the technical errors such as misplaced decimal points and so-called “fat finger” mistakes that financial firms dread, it’s a trifle compared to the goof Citigroup made last summer. The bank meant to send an interest payment to Revlon Inc. lenders and instead wired them the principal, too, totaling $900 million. And that misadventure pales in comparison to Deutsche Bank’s inadvertent transfer of 28 billion euros ($33.4 billion) to one of its outside accounts in 2018.

The case is Charles Schwab v. Spadoni, 21-cv-635, U.S. District Court, Eastern District of Louisiana (New Orleans).

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The post Schwab accidentally puts $1.2 million into woman’s account appeared first on InvestmentNews.

As our second lead editor, Cindy Hamilton covers health, fitness and other wellness topics. She is also instrumental in making sure the content on the site is clear and accurate for our readers. Cindy received a BA and an MA from NYU.

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