Former Facebook® and Nike® Diversity Manager Sentenced for $5 Million Fraud

Barbara Furlow-Smiles, a former diversity program manager at Facebook^® and Nike^®, has been sentenced to over five years in federal prison for a massive fraud scheme. Her conviction highlights a dramatic fall from grace for a professional once trusted to lead diversity, equity, and inclusion (DEI) initiatives at two major companies.

From Cash Kickbacks to Fake Invoices

From January 2017 to September 2021, Furlow-Smiles worked at Facebook as the Lead Strategist and Global Head of Employee Resource Groups and Diversity Engagement. During her tenure, she exploited her position to defraud the company of nearly $5 million. The scheme involved creating fake invoices and setting up fraudulent vendors, allowing her to siphon funds designated for DEI programs.

Furlow-Smiles, 38, used various payment platforms like PayPal^®, Venmo^®, and Cash App^® linked to her Facebook credit cards. She paid friends and relatives for non-existent services and goods. These individuals then kicked back most of the money to her, often in cash. She would then manipulate expense reports to cover her tracks.

The Fraud Continues at Nike

After her dismissal from Facebook in mid-2021, Furlow-Smiles took a position at Nike as Senior Director of DEI. She continued her fraudulent practices, stealing over $120,000 from Nike using a similar method. At Nike, she used her corporate card linked to payment apps to facilitate fraudulent charges, which she then disguised as legitimate DEI-related expenses.

Nike, like Facebook, was deceived by Furlow-Smiles’ elaborate scheme. She created fake invoices and directed payments for services that were never rendered. The stolen funds were used to finance a lavish lifestyle across multiple states, including California, Georgia, and Oregon.

Sentencing and Restitution

Furlow-Smiles was sentenced to five years and three months in federal prison, followed by three years of supervised release. She was also ordered to pay substantial restitution: nearly $5 million to Facebook and over $121,000 to Nike. This restitution aims to cover the stolen funds and additional costs incurred by the companies during the investigation.

The case has had a significant impact beyond the financial losses. Both Facebook and Nike reported a breach of trust among employees and a sense of betrayal, as Furlow-Smiles had been seen as a leader committed to fostering inclusive work environments.

The Impact on Diversity Programs

The fraud perpetrated by Furlow-Smiles raises serious concerns about the integrity and oversight of diversity programs within large organizations. These programs are designed to promote equity and inclusion but can be vulnerable to exploitation if not properly monitored. The theft not only diverted resources from genuine DEI efforts but also damaged the credibility of such initiatives.

Barbara Furlow-Smiles’ elaborate fraud not only resulted in a significant financial loss for Facebook and Nike but also harmed the very programs designed to foster inclusivity and equality.

References: Former Facebook and Nike diversity manager gets 5 years in prison for $5 million fraud | Former Diversity Program Manager at Facebook and Nike Sentenced to Federal Prison for $5 Million Fraud