A former Facebook diversity program manager has pleaded guilty to scamming the social media giant out of more than $4 million in a kickback scheme, the Justice Department announced on Tuesday.
Barbara Furlow-Smiles, who previously held the position of lead strategist and global head of employee resource groups and diversity engagement at Facebook, used her role to orchestrate an elaborate scheme that defrauded the company for almost four years.
Starting in January 2017 and continuing until September 2021, Furlow-Smiles was responsible for developing and executing diversity, equity, and inclusion (DEI) programs at Facebook. As part of her role, she had access to company credit cards and the ability to approve invoices. She misused this trust by submitting fake expense reports and approving fraudulent invoices in exchange for kickbacks.
Through this scheme, Furlow-Smiles enlisted the help of her friends and relatives to receive the kickbacks and funnel the money to her. This included former interns, a university tutor, a hair stylist, and even babysitters and nannies. She also misled Facebook into sending money to entities that did not provide any services, including an artist who created portraits and a preschool.
To avoid detection, Furlow-Smiles claimed that these individuals were vendors at Facebook events who had helped with marketing or provided merchandise. The kickbacks were then sent back to her through apps like Venmo and PayPal or delivered to her in cash, often wrapped up in T-shirts or other items.
NEW: Former Facebook diversity manager Barbara Furlow-Smiles who headed Facebook’s Diversity, Equity & Inclusion (DEI) programs has pleaded guilty to a kickback scheme where she raked in $4,000,000.
How equitable of her!
According to the Department of Justice, Furlow-Smiles… pic.twitter.com/NW3zrdYc7p
— Collin Rugg (@CollinRugg) December 13, 2023
Furlow-Smiles used the stolen funds to live an extravagant lifestyle, spanning from California to Georgia. She deceived the company to pay for her personal expenses, including luxury vacations, designer goods, and services like spa treatments and home renovations.
“Barbara Furlow-Smiles abused her position of trust as a global diversity executive for Facebook to defraud the company of millions of dollars,” said US Attorney Ryan K. Buchanan. “She used her time to orchestrate an elaborate criminal scheme in which fraudulent vendors paid her kickbacks in cash, all to fund a lavish lifestyle through fraud rather than hard and honest work.”
According to the FBI, Furlow-Smiles utilized lies and deceit to defraud both vendors and Facebook employees. The investigation was initiated after the company flagged suspicious activity in Furlow-Smiles’ accounts.
In a statement, Meta, the company formerly known as Facebook, stated that they had provided valuable assistance and cooperation during the investigation and will continue to do so.
Furlow-Smiles pleaded guilty to the charges of wire fraud and money laundering and is scheduled to be sentenced on March 19, 2024. She faces a maximum sentence of 20 years in prison for the wire fraud charge and 10 years for the money laundering charge.
The DOJ noted that this case serves as a reminder that individuals in positions of trust and responsibility should prioritize their roles and not abuse their power for personal gain. The company also stated that it is committed to preventing and detecting fraud within its organization and will continue to work with law enforcement to hold accountable those who engage in such criminal activities.
