Former Facebook global diversity strategist, Barbara Furlow-Smiles, pleaded guilty to wire fraud on Monday, confessing to embezzling over $4 million from the social media giant to finance a luxurious lifestyle in California and Georgia while overseeing various Diversity, Equity, and Inclusion programs from 2017 through mid-2021.
During this time, she abused her position and used Meta money to live like a rockstar, booking expensive hair stylist appointments and babysitting services. She even stole money to pay a hefty $18,000 tuition payment for a preschool, as per Entrepreneur.
Former Facebook Exec Steals From Company
The US Attorney's Office in Atlanta said in a statement that Furlow-Smiles stole the money "through an elaborate scheme involving fraudulent vendors, fictitious charges, and cash kickbacks." Prosecutors mentioned that Furlow-Smiles caused Meta to pay people for goods and services that were never actually provided to the company and then had those individuals pay her kickbacks.
Furlow-Smiles linked PayPal, Venmo, and Cash App accounts to her Facebook credit cards and used those accounts to pay friends, relatives, and other associates for goods and services purportedly provided to Facebook.
In some cases, Furlow-Smiles had Facebook pay people who did not give her kickbacks, directing $10,000 to an artist for specialty portraits and more than $18,000 to a preschool for tuition, prosecutors said. Furlow-Smiles pled guilty in Atlanta federal court on Monday and is scheduled to be sentenced on March 19. She is free on a $5,000 bond.
Furlow-Smiles' scheme operated in two ways to cause Facebook to pay for goods and services they never received, for which she received kickbacks. To conceal the fraudulent charges, Furlow-Smiles submitted fake expense reports claiming her associates provided services such as merchandise or marketing services.
Once they received payment from Facebook, her associates would send most of the money back to Furlow-Smiles in cash or transfer it to accounts in her or her husband's name. To conceal the transactions, sometimes her associates would wrap up the cash in other items like t-shirts, or she would direct her associates to pay each other, according to CNBC.
Furlow-Smiles' Million-Dollar Kickback Scheme
Furlow-Smiles even caused Facebook to onboard or provide contracts to people who paid her kickbacks, including friends, relatives, former interns from a prior job, nannies and babysitters, a hair stylist, and her university tutor. She also got the company to make payments for her benefits, such as payment of nearly $10,000 to an artist for specialty portraits and more than $18,000 to a preschool for tuition.
US Attorney Ryan K. Buchanan said in a statement that Furlow-Smiles abused her position of trust at Facebook to "defraud the company of millions of dollars, ignoring the insidious consequences of undermining the importance of her DEI mission." Meta provided assistance and cooperation with the criminal investigation, prosecutors said.
Keri Farley, Special Agent in Charge of FBI Atlanta, said, "Furlow-Smiles used lies and deceit to defraud both vendors and Facebook employees. The FBI works hard to make sure greed like this doesn't pay off, and those who commit fraud are held accountable."
Furlow-Smiles' sentencing is scheduled for March 19 before US District Judge Steven D. Grimberg. A spokesperson for Meta said in a statement, "We are cooperating with law enforcement on the case regarding this former program manager, and we will continue to do so."
