Schwab Sues Former Client After Accidental Transfer of $1.2 Million

An anonymous reader writes: Charles Schwab is suing one of its former customers after the retail brokerage allegedly sent more than $1.2 million to an account of the Louisiana woman and then could not get the money back. Schwab meant to send $82.56 to Kelyn Spadoni's Fidelity Brokerage Services account in February, but a computer glitch caused it to erroneously transfer more than $1.2 million, according to the lawsuit. 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 lawsuit. "We are fully cooperating with authorities in an 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 the funds, Jefferson Parish Sheriff's Office spokesman Captain Jason Rivarde said in an interview on Tuesday. "Obviously you are not planning to give the money back if you spent it," he said. When Spadoni signed up with Schwab in January, the agreement she signed included a section that said any overpayment of funds must be returned, said the lawsuit, filed March 30.

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