What is it with banks accidentally sending people millions of dollars? Back in February, we talked about how Citibank accidentally wired $900 million in one of the biggest botches in banking history. Now, Charles Schwab wants in on the action. Charles Schwab said they accidentally wired $1.2 million in February to a woman’s Fidelity account.
Schwab said an “issue created by a software enhancement” was the cause of the blunder. Kelyn Spadoni is based in Louisiana, and she initially requested a transfer of $82.56. When Schwab realized they accidentally sent her $1.2 million instead of the 80 bucks she requested, they tried to get the money back.
Before we discover what happened to the money, take a second to imagine yourself in this woman’s position. If $1.2 million suddenly appeared in your bank account, what would be your reaction? Would you let the excitement cloud your judgement and go on a spending spree? — well, that’s what Spadoni did.
When Schwab went to get the money back, the money was gone, and Spadoni wasn’t picking up the phone. She transferred roughly $350,000 into another account and used the money to buy a 2021 Hyundai Genesis and a house. Spadoni was living large as Schwab failed to recover the funds for a month.
Unfortunately for Spadoni, her luxurious living came to a halt on April 7 when she was arrested on charges of theft, bank fraud, and illegal transmission of monetary funds. Most of the missing money has been recovered by the seizure of Spadoni’s Hyundai and the cancellation of the house sale.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.