Fb and Nike DEI supervisor will get jail for fraud

A former diversity manager at Facebook and Nike was sentenced to 5 years and three months in jail for stealing more than $5 million from these corporations that had been earmarked for DEI initiatives, federal prosecutors mentioned.

Georgia resident Barbara Furlow-Smiles, who pleaded responsible to wire fraud within the case in December, stole greater than $4.9 million from Fb “using a scheme involving fraudulent distributors, faux invoices, and money kickbacks,” Atlanta U.S. Attorney Ryan Buchanan mentioned in an announcement.

“After being terminated from Fb, she openly continued the fraud as a DEI chief at Nike, the place she stole one other six-figure sum from their variety program,” Buchanan mentioned.

Furlow-Smiles, 38, used the cash she stole “to fund a luxurious life-style in California, Georgia and Oregon,” in keeping with Buchanan’s workplace, which had requested a choose to condemn her to 6½ years.

She was a lead strategist and world head of worker useful resource teams and variety engagement at Fb, the subsidiary of Meta. She was not Fb’s high government for variety, fairness and inclusion efforts.

Prosecutors mentioned that whereas at Fb she linked PayPal, Venmo and Money App accounts to her Fb bank cards after which used these accounts to pay her associates, relations, and others for purported items and providers for the corporate that have been by no means delivered.

“The overwhelming majority of the cash” that went to these different folks was kicked again to Furlow-Smiles, prosecutors mentioned.

Prosecutors in a sentencing memo mentioned that Meta decided that Furlow-Smiles started the scheme inside months of becoming a member of the corporate in 2017, and that an investigation discovered she had “manipulated people who have been near, and trusted her, together with former interns,” who thought-about her a mentor.

After she was fired from Fb in mid-2021, Furlow-Smiles labored for Nike from November of that yr to February 2023 as senior director of variety, fairness & inclusion.

Whereas there, she executed a theft scheme just like the one she did at Fb, prosecutors mentioned.

Furlow-Smiles, who lives in Marietta, was sentenced Monday in Atlanta federal courtroom. District Decide Steven Grimberg additionally ordered her to pay restitution of $4.98 million to Fb, and one other $121,000 to Nike.

Meta beforehand advised CNBC that the corporate cooperated with legislation enforcement within the investigation of Furlow-Smiles, who should report back to jail by July 22.

Prosecutors of their sentencing memo mentioned that along with the cash Furlow-Smiles stole from the corporate, Meta misplaced greater than $4.5 million “along with different bills, akin to lawyer’s charges, which have been incurred because of Meta having to uncover and examine her fraud scheme.”

“As Meta notes, ‘the hurt from [Furlow-Smiles’] legal conduct can’t be measured purely in monetary phrases,'” prosecutors recounted of their memo. “Her ‘crimes additionally resulted in anguish amongst these staff that labored intently together with her.'”

Nike advised prosecutors that she was “entrusted as a frontrunner for [the] firm, that she would embody the worth of ‘Doing the Proper Factor’ which is considered one of NIKE’s key maxims,” the prosecutor mentioned of their memo. “As Nike explains, ‘[t]o say that Ms. Furlow-Smiles violated our belief could be an understatement. The fraud dedicated by Ms. Furlow-Smiles violated the belief of and devastated the staff who managed and labored together with her.’ “

Nike additionally advised prosecutors her “full lack of accountability or regret was extremely disappointing,” in keeping with the memo.

A lawyer for Furlow-Smiles didn’t have a right away remark.

A spokesperson for Meta declined to remark and referred CNBC to the press launch issued within the case by prosecutors.

Nike didn’t instantly reply to a request for remark.