{"id":227601,"date":"2024-06-03T14:06:10","date_gmt":"2024-06-03T14:06:10","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/06\/03\/ex-facebook-and-nike-diversity-manager-gets-5-years-in-jail-over-5m-fraud-scheme\/"},"modified":"2025-06-25T17:18:00","modified_gmt":"2025-06-25T17:18:00","slug":"ex-facebook-and-nike-diversity-manager-gets-5-years-in-jail-over-5m-fraud-scheme","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/06\/03\/ex-facebook-and-nike-diversity-manager-gets-5-years-in-jail-over-5m-fraud-scheme\/","title":{"rendered":"Ex-Facebook and Nike diversity manager gets 5 years in jail over $5m fraud scheme"},"content":{"rendered":"<p> [ad_1]<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/06\/Barbara_Furlow_Smiles-.png?w=2048\" \/><\/p>\n<p>A former diversity and inclusion manager at <a href=\"https:\/\/fortune.com\/company\/facebook\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/facebook\/\" class=\"sc-424e8006-0 lagCOr\" rel=\"noopener\">Facebook<\/a> and <a href=\"https:\/\/fortune.com\/company\/nike\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/nike\/\" class=\"sc-424e8006-0 lagCOr\" rel=\"noopener\">Nike<\/a> has been sentenced to five years and three months in prison for stealing more than $5 million from the tech giant to \u201cfund a luxury lifestyle\u201d.<\/p>\n<div>\n<p>Barbara Furlow-Smiles, who pleaded guilty to wire fraud in the case in December, stole more than $4.9 million that had been earmarked for DEI initiatives from Facebook after apparently getting \u201ccaught up\u201d in the company\u2019s \u201cmove fast and break things\u201d culture.<\/p>\n<p>The 38-year-old served as lead strategist and global head of employee resource groups and diversity engagement at the social media giant from 2017 to 2021, before being fired.\u00a0<\/p>\n<p>It\u2019s unclear whether Furlow-Smiles was let go from Facebook because of this fraud, but she then joined Nike, where she continued to \u201cbrazenly\u201d swindle a six-figure sum from the sportswear giant\u2019s diversity program until 2023.\u00a0<\/p>\n<p>\u201cFurlow-Smiles shamelessly violated her position of trust as a DEI executive at Facebook to steal millions from the company utilizing a scheme involving fraudulent vendors, fake invoices, and cash kickbacks,\u201d U.S. Attorney Ryan K. Buchanan said <a href=\"https:\/\/www.justice.gov\/usao-ndga\/pr\/former-diversity-program-manager-facebook-and-nike-sentenced-federal-prison-5-million\" target=\"_blank\" aria-label=\"Go to https:\/\/www.justice.gov\/usao-ndga\/pr\/former-diversity-program-manager-facebook-and-nike-sentenced-federal-prison-5-million\" rel=\"noopener\" class=\"sc-424e8006-0 lagCOr\">in a statement.<\/a><\/p>\n<p>Furlow-Smiles, who lives in Marietta, Ga. was sentenced in Atlanta federal court in May and ordered to hand back the cash, including over $121,000 to Nike.<\/p>\n<p>\u201cShe not only threw away a lucrative career, but will serve time behind bars for her excessive greed,\u201d Keri Farley, Special Agent in Charge of FBI Atlanta concluded.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">How did she do it?\u00a0<\/h2>\n<p>Furlow-Smiles was able to steal from Facebook, now Meta, because she was a senior member of staff with access to company credit cards and the authority to sign off invoices\u2014or, in this case, fake invoices from vendors who were her family and friends.\u00a0<\/p>\n<p>\u201cBut these individuals did not provide goods or services to the company,\u201d\u00a0 <a href=\"https:\/\/www.justice.gov\/usao-ndga\/pr\/former-global-diversity-executive-facebook-pleads-guilty-defrauding-company-out-more-4\" target=\"_blank\" aria-label=\"Go to https:\/\/www.justice.gov\/usao-ndga\/pr\/former-global-diversity-executive-facebook-pleads-guilty-defrauding-company-out-more-4\" rel=\"noopener\" class=\"sc-424e8006-0 lagCOr\">the attorney\u2019s office noted.<\/a><\/p>\n<p>Once Facebook paid the vendors\u2014who included her former interns, a hairstylist, baby-sitters, nannies and even her university tutor\u2014she directed they send her a portion of the money they received.<\/p>\n<p>Often kickbacks were paid in cash, sometimes delivered wrapped in T-shirts, or through transfers to accounts held in her husband\u2019s and others\u2019 names.\u00a0<\/p>\n<p>Not only did Furlow-Smiles cover her tracks by submitting fake expense reports, she also directed associates to pay one another, or others who she owed money.\u00a0<\/p>\n<p>But, according to the attorney\u2019s office, \u201cmost\u201d of her associates \u201cdid not know that the payments came from Facebook.\u201d<\/p>\n<p>Furlow-Smiles also misled Facebook into paying pay third parties for personal goods or services that did not provide kickbacks, including nearly $10,000 to an artist for specialty portraits and more than $18,000 to an unnamed preschool for tuition.<\/p>\n<h2 class=\"wp-block-heading\">She got caught up in Facebook\u2019s \u2018move fast and break things\u2019<\/h2>\n<p>\u201cI blew it big time,\u201d Furlow-Smiles admitted in a letter to the judge in her case, adding that her actions \u201cadded fuel to the fire of disengagement and <a href=\"https:\/\/fortune.com\/2024\/04\/19\/dei-under-attack-real-reason-it-makes-white-men-uncomfortable-careers-leadership-diversity\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2024\/04\/19\/dei-under-attack-real-reason-it-makes-white-men-uncomfortable-careers-leadership-diversity\/\" class=\"sc-424e8006-0 lagCOr\" rel=\"noopener\">attack of DEI efforts<\/a>.\u201d<\/p>\n<p>But the disgraced DEI officer failed to show any regret in Nike\u2019s eyes.\u00a0<\/p>\n<p>The company <a href=\"https:\/\/www.cnbc.com\/2024\/05\/16\/facebook-nike-furlow-smile-prison-fraud.html\" target=\"_blank\" aria-label=\"Go to https:\/\/www.cnbc.com\/2024\/05\/16\/facebook-nike-furlow-smile-prison-fraud.html\" rel=\"noopener\" class=\"sc-424e8006-0 lagCOr\">told prosecutors<\/a> that she was \u201centrusted as a leader for [the] company, that she would embody the value of \u2018Doing the Right Thing\u2019 which is one of NIKE\u2019s key maxims,\u201d adding that her \u201ccomplete lack of accountability or remorse was incredibly disappointing.\u201d\u00a0<\/p>\n<p>Yet, Furlow-Smiles\u2019 attorney placed the blame on her actions partly on her previous employer.<\/p>\n<p>In a sentencing memorandum, Phillip Hamilton argued that his client got caught up in Facebook\u2019s \u201cmove fast and break things\u201d culture and that others were also exploiting the company\u2019s expenses for their own benefits.<\/p>\n<p>\u201cBarbara \u2026 quickly learned that coworkers were friends with vendors and relied on these vendors to do certain things, which included providing kickbacks for referring Facebook business to them. It was the norm,\u201d Hamilton alleged in the memorandum.<\/p>\n<p>Neither Meta nor Nike have responded to <em>Fortune\u2019s<\/em> request for comment.<\/p>\n<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/06\/03\/facebook-nike-dei-diversity-manager-sentenced-5-years-5m-fraud-attorney-barbara-furlow-smiles\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] A former diversity and inclusion manager at Facebook and Nike has been sentenced to five years and three months in prison for stealing more<\/p>\n","protected":false},"author":1,"featured_media":227602,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/227601"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=227601"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/227601\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/227602"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=227601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=227601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=227601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}