Home Diversity, Equity & Inclusion Former Facebook and Nike diversity manager in U.S. sentenced to over five years for $5 million fraud

Former Facebook and Nike diversity manager in U.S. sentenced to over five years for $5 million fraud

by HR News Canada
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Barbara Furlow-Smiles, a former diversity program manager at Facebook and Nike, has been sentenced to five years and three months in federal prison for orchestrating a scheme that defrauded the two companies of over $5 million.

The sentencing, announced by the U.S. Attorney’s Office for the Northern District of Georgia, concluded a series of fraudulent activities spanning from 2017 to 2023.

Furlow-Smiles, 38, of Marietta, Georgia, held prominent roles in diversity, equity, and inclusion (DEI) at Facebook and Nike. She used these positions to embezzle $4.9 million (all figures U.S.) from Facebook and over $120,000 from Nike through a complex network of fraudulent vendors, fictitious invoices, and cash kickbacks.

“Furlow-Smiles shamelessly violated her position of trust as a DEI executive at Facebook to steal millions from the company,” stated U.S. Attorney Ryan K. Buchanan. “After being terminated from Facebook, she brazenly continued the fraud at Nike, where she stole another six-figure sum from their diversity program.”

Keri Farley, Special Agent in Charge of FBI Atlanta, echoed Buchanan’s sentiments, emphasizing the breach of trust involved. “As Lead Strategist at Facebook, Furlow-Smiles’ employer put an extreme amount of trust in her, only to have that trust completely violated,” Farley said. “After she was fired, she carelessly continued her fraudulent schemes at Nike, thinking she was untouchable.”

During her tenure at Facebook, from January 2017 to September 2021, Furlow-Smiles leveraged her access to company credit cards and her authority to approve invoices for fraudulent activities. She directed Facebook to pay for goods and services never rendered, funneling the payments through friends, relatives, and associates who subsequently kicked back the majority of the money to her. This included using payment platforms like PayPal, Venmo, and Cash App to mask the transactions.

Furlow-Smiles also manipulated Facebook’s vendor onboarding process, approving invoices for services from companies owned by her associates, who then returned a portion of the payments to her. The scheme extended to various individuals, including friends, former interns, and even her university tutor.

After her termination from Facebook, Furlow-Smiles joined Nike as the Senior Director of DEI in November 2021. In this role, she continued her fraudulent practices by linking her corporate card to PayPal and Venmo accounts, creating fictitious expenses related to DEI events, including a Juneteenth event in New York. These fraudulent charges were similarly kicked back to her by her associates.

Furlow-Smiles used the embezzled funds to support a luxury lifestyle across California, Georgia, and Oregon. She was convicted of wire fraud on December 11, 2023, following a guilty plea.

U.S. District Judge Steven D. Grimberg sentenced Furlow-Smiles to prison followed by three years of supervised release. She was also ordered to pay restitution amounting to $4,981,783.58 to Facebook and $121,054.50 to Nike, totaling $5,102,838.08.

The case was investigated by the Federal Bureau of Investigation, with Assistant U.S. Attorneys Stephen H. McClain and Bernita B. Malloy prosecuting. Further information can be obtained from the U.S. Attorney’s Public Affairs Office.

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