• Memphis-based children's magazine resolves battle with Bank of America after fraud complaints

    By: Kody Leibowitz

    Updated:

    MEMPHIS, Tenn. - A Memphis-based children’s magazine company resolved its years-long battle with Bank of America after a FOX13 Investigation shed light on the case. 

    Jabberblabber co-founder Nikki Schroeder sent a text to FOX13 Investigates Tuesday morning that said “the matter has been resolved. I attribute your story greatly.”

    PREVIOUS STORY: Bank reopens children's magazine company's complaint about fraud after FOX13 investigation

    The matter Schroeder referred to is the battle her magazine has had for years with Bank of America.

    Schroeder wouldn’t confirm what exactly Jabberblabber agreed to with the major bank, only that resolution finally came for her magazine.

    Former employee charged

    FOX13 Investigates reported in May about the case that led to these problems.

    According to federal records, former Jabberblabber employee Katrina Sears deposited more than 150 business checks made out to the company into her own personal Bank of America account. 


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    "She was stealing in small enough increments that it wasn’t a glaring red flag in our system and she was deleting all of the evidence of the transactions on our end, so when we reconciled at the end of each month, everything was coming up fine,” said Schroeder in an interview in April with FOX13 Investigates. “Because she was going into our QuickBooks system and deleting all evidence of the transaction and the client. Period.”

    Sears pleaded guilty in Oct. 2015 to one count of obstruction of correspondence. 

    Her family repaid Jabberblabber more than $72,000 – the money stolen between Dec. 2010 and Feb. 2014 – according to federal records and Schroeder. 

    But Schroeder contends her magazine is out nearly $100,000.

    “Bank of America allowed this person to steal from us 162 times,” said Schroeder. “Not once or twice. They had all of the evidence all along and they could have put a stop to it immediately.”

    Jabberblabber complaint reopened 

    After a FOX13 Investigation, Bank of America took a new look at a bank complaint Jabberblabber filed with the bank earlier in 2019.

    As that complaint was reopened, Jabberblabber also filed a complaint with the Office of the Comptroller of the Currency, better known as OCC.

    The OCC spokesperson said at the time to FOX13 that the banking oversight agency could not comment on the specific legal case involving Bank of America and Jabberblabber, but also referred FOX13 Investigates to HelpWithMyBank.gov.

    FOX13 Investigates reached out to Bank of America for comment on them re-examining Jabberblabber’s complaint and if the bank has a response to the Bank Secrecy Act. 

    Bank of America never responded to FOX13.

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