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Schwab Suing Ex-Client It Gave $1.2M By Mistake

Charles Schwab said it “inadvertently” transferred $1.2 million to the Kelyn Spadoni’s Fidelity account and now the former client is avoiding its calls. So reports Advisor Hub.

dollar 3706548 640 smallIn a lawsuit, Schwab claims Spadoni has “taken steps to prevent Schwab from recovering the funds.” Schwab is also seeking an emergency order to prevent Spadoni from spending the money.

Spadoni, who opened a Schwab One account in January, closed it a month later. Schwab says when it tried to transfer her balance—$82.56—it actually sent an extra $1,205,536.84. Schwab attributed the mistake to “an issue created by a software enhancement.”

Schwab is not suing Fidelity over the incident.

Read the full article from Advisor Hub.

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