Charles Schwab accidentally sends $1 B to woman's account

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Charles Schwab accidentally sends $1 B to woman's account

It's not quite the$ 1 billion blunder that Charles Schwab Corp. made last summer, but Citigroup Inc. 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 transferring$ 1.2 million to the Fidelity account of Kelvyn Spadoni in February, rather than the$ 82.56 she had requested, according to a suit filed in federal court in New Orleans last month. When the company realized the mistake and tried to take back the money, it was gone and Spadoni was n't answering her phone, the bank said.

Spadoni, 33, of Jefferson Parish, was fired earlier this week and arrested as a 911 dispatcher, and WVUE-TV reported, citing the Harvey, Louisiana Sheriff's Office. According to reports, Spadoni, who remains in prison, had used some of the money, most of which has been recovered, to buy a house and a Hyundai Genesis sports-utility vehicle in 2021. The sheriff's office did n'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 of Citigroup last summer. The bank intended to make an interest payment to Revlon Inc. lenders and instead wired them the principal, totaling$ 900 million. And this mishap pales in comparison to Deutsche Bank AG's fraudulent transfer of 28 billion euros in 2018 to one of its outside accounts.

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