How an ex-Facebook employee stole Rs 40 crore from the company and repeated the fraud at Nike

Barbara Furlow-Smiles, a former diversity program manager at Facebook and Nike, has been sentenced for embezzling over $5 million through a complex scheme involving fake vendors, fraudulent paperwork, and cash kickbacks. The 38-year-old from Marietta, Georgia, received a five-year, three-month prison sentence, followed by three years of supervised release. US District Judge Steven D. Grimberg also ordered her to pay $4.9 million to Facebook and $121,054 to Nike, totaling $5,102,838 in restitution. Furlow-Smiles was convicted of wire fraud after pleading guilty in December 2023. The FBI investigated the case.

As a Diversity, Equity, and Inclusion (DEI) executive at Facebook, Furlow-Smiles abused her position of trust to steal millions, according to US Attorney's Office, Northern District of Georgia. She orchestrated a scheme where she funneled payments through fake vendors and bogus invoices, directing the fraudulent proceeds back to herself. Even after her termination from Facebook, she continued her fraudulent activities at Nike, stealing another significant sum from their diversity program.

During her tenure as Lead Strategist and Global Head of Employee Resource Groups and Diversity Engagement at Facebook, from January 2017 to September 2021, Furlow-Smiles managed DEI programs and had access to company credit cards. She could submit purchase requisitions and approve invoices for Facebook’s authorized vendors. She exploited this access to defraud Facebook by paying individuals for goods and services never provided, then instructing them to return most of the money to her, according to the Attorney's Office.

How Barbara Furlow-Smiles committed the fraud

Furlow-Smiles executed her scheme in two main ways. First, she linked her Facebook credit cards to PayPal, Venmo, and Cash App accounts, using these to pay friends, relatives, and associates for nonexistent goods and services. She concealed these fraudulent payments with false expense reports, claiming the funds were for legitimate work related to Facebook events and programs. The recipients returned the majority of the money to her in cash or through account transfers, sometimes even disguising the cash in packages sent via mail.

Second, Furlow-Smiles facilitated the onboarding of vendors owned by friends and associates who would then pay her kickbacks. She approved fake invoices from these vendors, and after Facebook paid them, she directed the vendors to return part of the money to her. She recruited numerous individuals, including friends, relatives, former interns, nannies, a hair stylist, and her university tutor, to participate in the scheme.

After leaving Facebook, Furlow-Smiles joined Nike from November 2021 to February 2023 as Senior Director of Diversity, Equity & Inclusion. She was responsible for supporting DEI initiatives, developing strategies, and hosting DEI events. At Nike, she repeated her fraudulent tactics by linking her corporate card to PayPal and Venmo accounts, making payments to associates who then kicked back portions of the money, the Attorney's office said.

She used the embezzled funds to support a luxurious lifestyle across California, Georgia, and Oregon, prosecutors said. .