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NEW YORK – Charles Schwab Corp. is suing one of its former clients after the retail brokerage allegedly sent more than $ 1.2 million to an account of the woman from Louisiana and then could not get the money back.
Schwab planned to send $ 82.56 to Kelyn Spadoni’s Fidelity Brokerage Services account in February, but a computer error caused it to incorrectly transfer more than $ 1.2 million.
Schwab tried to get the money back, but repeated calls and texts to Spadoni, who lives in a suburb of New Orleans, were not returned, the brokerage said in the case.
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“We are fully cooperating with authorities in an effort to resolve this issue,” Schwab said in a statement on Tuesday. Fidelity declined to comment.
After the money was received in her account, Spadoni transferred a quarter of the money to another account, after which she bought a house and a car with the money, Capt said. Jason Rivarde, spokesman for the Jefferson Parish Sheriff’s Office, said in an interview Tuesday.
“Obviously you do not intend to return the money if you spend it,” he said.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| SCHW | CHARLES SCHWAB | 66.63 | -1.12 | -1.65% |
When Spadoni reported to Schwab in January, the agreement she signed included a section stating that the overpayment of funds should be returned, according to the lawsuit, which was filed on March 30.
Schwab filed a complaint on April 6, Rivarde said. Spadoni was arrested on April 7 and charged with bank fraud, illegal transfer of funds and theft of more than $ 25,000. She was released from prison on April 8 after posting a $ 150,000 bond, Rivarde said.
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Most money was recovered.
A message from Reuters to a number belonging to Spadoni was not immediately returned. Attempts by other media to reach Spadoni also went unanswered. Rivarde said he did not have contact information for Spadoni or any lawyer related to her.
Some media reports compare the case to Citigroup Inc who paid Revlon Inc when the bank mistakenly sent $ 504 million to a group of Revlon lenders. A judge said in February that the asset managers could keep the funds because they were being paid the money they owed, and that there was a ‘strong suspicion’ that they could use it freely.