A former Facebook executive has pleaded guilty to fraud after stealing more than $4 million from the social media giant.
Barbara Furlow-Smiles, 38, ran several diversity, equity and inclusion (DEI) programs at Facebook from January 2017 to September 2021. During that period, she stole money through an “elaborate scheme” that prosecutors say included “fraudulent sellers, bogus charges, and bribes.”
Prosecutors said Smiles, who was responsible for developing and implementing Facebook's DEI initiatives, used the stolen money to live a lavish lifestyle in California and Georgia.
Ex-Facebook diversity manager pleads guilty to bilking $4M from company in kickback scheme: feds https://t.co/WM08dz1eXK pic.twitter.com/oI4BtFkzTS
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Smiles, who pleaded guilty in Atlanta federal court on Monday, made Facebook pay people for goods and services that were not actually provided to the company, and then made those individuals pay bribes to her.
“These individuals included friends, relatives, former interns at a previous job, nannies, babysitters, a hairdresser, and her college mentor,” the US Attorney’s Office said.
“The defendant abused her position of trust as global chief diversity officer at Facebook to defraud the company of millions of dollars, ignoring the malicious consequences of undermining the importance of her mission,” US Attorney said.
It added: "Motivated by greed, she used her time to orchestrate an elaborate criminal scheme in which fraudulent salespeople paid bribes in cash. She even involved her relatives, friends and other accomplices in her crimes, all to finance a lavish lifestyle through fraud rather than honest, hard work."
As part of the scheme, Smiles linked her 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 allegedly provided to Facebook.
It is not clear whether any associates have been charged in connection with the case.
Prosecutors said that Meta, the parent company that owns Facebook, provided assistance and cooperation in the criminal investigation.
A Meta spokesperson said: “We are cooperating with law enforcement authorities in the case involving this former program director, and will continue to do so.”
Furlow Smiles, who lives in Atlanta, is scheduled to be sentenced on March 19, and is now free on $5,000 bail.