Bitcoin is not regulated to a degree that allows any kind of meaningful protection from errors. Some form of regulation is probably coming soon, and the IRS is certainly interested, but the whole point of Bitcoin, for many, is precisely the fact that it can be transferred electronically without going through a regulated financial institution. And that is what makes it difficult or impossible to cancel a transaction, even if there is an error. Even with banks, wire transfers often cannot be reversed. Wire transfers are treated as cleared funds immediately, and this allows the recipient immediate access to the money, without having to worry about a reversal caused by insufficient funds or a stop payment order from the party that sent the money. ACH and wire transfer are two very different things. This has been discussed in other threads quite a bit, and the law is pretty clear in the USA. An ACH transfer, by its very definition, and by the federal regulations that govern it, is an electronic check. Like a paper check, the party that initiates an ACH transfer has the right to stop payment, within certain parameters and limits. Let's say you give me a personal loan, and I am paying it back in installments. At the end, I get confused, and send you an extra payment, after the loan is paid off. I send you a paper check. You deposit it. I can stop payment on that check. Even if your bank has already allowed you to withdraw the money, or allowed you to use the money to make purchases with your debit card, I can still stop payment within a certain time period. Your bank will reverse the deposit, and that could easily cause your account balance to go negative. You will not get to keep the money If you sue your bank, you will definitely lose, and probably have to pay the bank's attorney's fees, because that kind of lawsuit would be frivolous. You can sue ME, but if I can clearly show that the loan was paid off and the check was sent by mistake and you were not entitled to the money, you will almost certainly lose that case, too. The rules are roughly the same for an ACH payment. The time frame and the procedures may be a little different. But the concept is the same as stopping payment on a paper check. An ACH payment can be reversed. BMK
she could have opened offshore bank accounts (in Panama, Puerto Rico, Cayman, Switzerland,...), then run for the border ? $1 M fine and or 30 years imprisonment for bank fraud, but it seems they wouldn't put you away for that long (if you've watched "American Greed" show.
She managed to buy a house and a car before they realized their accounting error? Wow. Btw, when you open an account with a bank or online brokerage account, there should be a clause where you agree to give back money in the case of an accounting error...if she signed something with that clause, then legally she's not entitled to the money. This won't end well for her. If she really wanted to keep it, she should have converted the money to Bitcoin (transferred the money to a private address, not held at an exchange / custodian) and then left the country (maybe go to a place like Russia that does not have an extradition agreement with the US).
Puerto Rico is part of the US and Switzerland no longer has secret accounts. US went after that tax haven decades ago. The other two countries have extradition agreements with the US. Maldives probably the best option for a place to flee, but 1.2M is not enough to retire there...at least not in the good parts of the island.
I like your thought process well 30 years in US prison ain't that bad three meals a day, good facility, free gym membership, free education, free health care, [a draw back could be if your cell mate finds you attractive
Checks = cash, just in a different paper form. Bag of money with identifying information, how do I know that identifying information is valid or genuine? What if it's just some random doodling or out of date and really doesn't really identify anybody? How do I know it's "identifying"? What does it identify? What if it identifies the wrong person? So if it's neither valid or genuine, why should it be sufficient to prevent someone from keeping the money? Am I supposed to play detective know to verify the "identifying" information? No nobody is under any obligation to do anything that's beyond anything that is reasonable. Yes electronic transfer process is entitled to be reversed if there is an error but that reversal process is not guaranteed to be successful. And that money was deposited to her account that belonged to her and she is legally entitled to move that money regardless of whatever clause of disclaimer that she has signed up for. In this situation, she has no obligation nor the capacity to perceive it as "overpayment". Like I said, she just needs a good lawyer and then the law will be discovered to be on her side. Everything is in the discovery of the truth. Yes and yes. Yes if you are able to. If you did not make any reasonable efforts to cancel or suspend the credit card, yes. This is why you are supposed to call the company of any credit/debit/bank cards that you believe you have lost or were stolen within the first 1/2 hour. You are NOT supposed to just forget about it just because you think the issuing companies will just eat up all the charges and you are not responsible at all. This is why the fees on credit cards keep going higher and higher and we all end up paying for it because we live in a society where people just f*** up and believe there is no consequences and someone else will help them and they don't have to own up to their actions. Yes someone does help you and will try to make you whole but that should be entirely up to them in their good grace, completely gratuitous on their part and it is not something that you are entitled to. You f*** up and you live with the consequences. Just like in this case, Charles Schwab f***ed up and they are supposed to live with the consequences. If this woman returns the money great but if she doesn't, she is within her rights. She found the money in her account, it's hers. She gets to keep it. Charles Schwab doesn't like it? Don't f*** up next time!! They are an investment brokerage. People trust them with their money. They are not supposed to f*** up like that. $1.2 million??!!! For just $86??!!! Seriously???!!!
I would've thought the same thing. LOL She turned around and bought a vacation home and a car. Look at how well she stimulated the economy. Schwab should give out more of those stimulus checks!!