Schwab Corp mistakenly deposits $1.2M into US woman’s account

When the company attempted to take the money back, it was gone and Kelyn Spadoni wasn’t answering her phone, the bank said.

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 $1 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 Kelyn 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.