Home / Business / Schwab sued former client after accidentally transferring $ 1.2 million.

Schwab sued former client after accidentally transferring $ 1.2 million.

NEW YORK – Charles Schwab Corp is suing one of its former clients after the retail broker is accused of sending more than $ 1.2 million to a Louisiana woman’s account and failing to receive a refund.

Schwab intends to send $ 82.56 to Kelyn Spadoni’s Fidelity Brokerage Services account in February. But a computer crash resulted in more than $ 1.2 million in mistaken transfers, according to the lawsuit.

Schwab tried to request a refund. But repeated calls and texts to Spadoni, who lives in New Orleans suburbs, were not returned, the broker said in the lawsuit.

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“We cooperate fully with the agency in any effort to resolve this issue,”

; Schwab said in a statement on Tuesday. Fidelity declined comment.

After receiving the money in her account, Spadoni transferred a quarter of the money to another account, after which she bought a house and a car using that money, Captain Jason Rivarde, a spokesman for the Jefferson Sheriff’s Office, said in an interview on Tuesday.

“Obviously, you weren’t planning on giving it back if you spent it,” he said.

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SCHW CHARLES SCHWAB 66.63 -1.12 -1.65%

When Spadoni signed with Schwab in January, the deal she signed included a portion stating that any excess payments must be returned, the lawsuit 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 money transfers and more than $ 25,000 theft.She was released from prison on April 8. After posting the $ 150,000 bond, Rivarde said.

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Most of the money has been borrowed.

A message from Reuters to a number identified as Spadoni was not immediately returned. Other media attempts to reach Spadoni were also unanswered.Rivarde said he had no contact information for Spadoni or any attorneys involved with her.

Some media reports likened the case to Citigroup Inc crashing Revlon Inc’s payments when the bank inadvertently handed over $ 504 million in lender group Revlon.A judge in February said asset managers could keep the money. Because they get the money they owe and have “A clear assumption” that they are free to use it.

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