Barbara Furlow-Smiles, a former Diversity, Equity, and Inclusion (DEI) manager, has been sentenced to five years and three months in federal prison. This follows her guilty plea in December 2023 to charges of wire fraud involving the theft of over $5 million from her former employers, Facebook (now Meta) and Nike. The vast majority of her ill-gotten gains came from her tenure at Facebook, where she served as Lead Strategist and Global Head of Employee Resource Groups and Diversity Engagement from January 2017 to September 2021.
The U.S. Attorney’s Office for the Northern District of Georgia detailed how Barbara Furlow-Smiles exploited her position of trust to orchestrate a sophisticated embezzlement scheme. By creating fraudulent vendors, submitting fake invoices, and accepting cash kickbacks, she siphoned over $4.9 million from Facebook. She used these funds to support a lavish lifestyle across California, Georgia, and Oregon. In addition to her crimes at Facebook, she also embezzled more than $121,000 from Nike, where she briefly held a similar DEI role.
Details of the Fraud and Sentencing
Barbara Furlow-Smiles’ fraudulent activities were uncovered after meticulous investigations revealed significant discrepancies in Facebook’s financial records. As a trusted employee with access to company credit cards and financial systems, she was able to manipulate internal controls without immediate detection. Her scheme involved the creation of fictitious vendor accounts through which she funneled company funds for personal use.
U.S. Attorney Ryan K. Buchanan condemned her actions, emphasizing the severe breach of trust involved in her crimes. Barbara Furlow-Smiles shamelessly violated her position of trust as a DEI executive at Facebook to steal millions from the company,” Buchanan stated. Her actions not only defrauded her employers but also undermined the integrity of corporate governance and internal controls within major corporations.
In addition to her prison sentence, Barbara Furlow-Smiles will be required to pay restitution to Facebook and Nike. This case serves as a stark reminder of the importance of stringent financial oversight and the potential risks posed by internal fraud, even among high-ranking and trusted employees.
Elaborate Scheme Involving Fake Invoices and Personal Connections by Barbara Furlow-Smiles
In a shocking case of corporate fraud, former Facebook diversity executive Barbara Furlow-Smiles was convicted for embezzling company funds by leveraging various payment platforms linked to her Facebook credit cards. She reportedly used PayPal, Venmo, and Cash App to transfer money to friends, relatives, and other associates, under the guise of paying for services and goods that were never provided to Facebook. To maintain her facade, Barbara Furlow-Smiles submitted falsified expense reports, falsely claiming that her associates were engaged in various programs or events for the company.
In addition to manipulating internal expense reports, Barbara Furlow-Smiles brought in vendors with whom she had personal connections. These vendors included friends, relatives, former interns, nannies, babysitters, a hair stylist, and even her university tutor. She approved fake invoices from these vendors, and once Facebook processed the payments, she directed them to return a portion of the money to her. Payments from Facebook were then either electronically transferred to her or her husband’s bank accounts, or sent to her as cash wrapped in t-shirts.
Continued Fraud at Nike and Legal Consequences
Despite the severity of her actions at Facebook, Barbara Furlow-Smiles continued her fraudulent activities after joining Nike in November 2021. Throughout her tenure, which lasted until February 2023, she resumed her schemes, once again exploiting her position to approve fake invoices and secure kickbacks from complicit vendors. This brazen continuation of her deceitful practices underscores her belief in her own untouchability, ultimately leading to her downfall.
Barbara Furlow-Smiles’ fraudulent activities have resulted in severe legal repercussions. She has been sentenced to five years and three months in prison, followed by three years of supervised release. Furthermore, she has been ordered to repay both Facebook and Nike for the financial damages incurred. FBI Special Agent Keri Farley commented on the case, emphasizing that Barbara Furlow-Smiles not only squandered a promising career but also compromised the trust placed in her by both companies, leading to her inevitable incarceration due to her excessive greed
