Schwab Accidentally Put $1.2 Million in Woman’s Fidelity Account

(Bloomberg) -- 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 Kelvyn 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.

While Schwab’s error 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 by Citigroup last summer. The bank meant to make 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 AG’s inadvertent transfer of 28 billion euros ($33.4 billion) to one of its outside accounts in 2018.

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