https://www.cnbc.com/2024/05/16/facebook-nike-furlow-smile-prison-fraud.html Skip Navigation logo * watchlive logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Sports * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity CNBC TV * Live TV * Live Audio * Business Day Shows * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist * Trust Portfolio * Analysis * Trade Alerts * Meeting Videos * Homestretch * Jim's Columns * Education * Subscribe * Sign In * Pro News * Pro Live * Full Episodes * Stock Screener * Market Forecast * Options Investing * Chart Investing * Subscribe * Sign In Menu * Make It * select + ALL SELECT + Credit Cards + Loans + Banking + Mortgages + Insurance + Credit Monitoring + Personal Finance + Small Business + Taxes + Help for Low Credit Scores + Investing + SELECT + All Credit Cards + Find the Credit Card for You + Best Credit Cards + Best Rewards Credit Cards + Best Travel Credit Cards + Best 0% APR Credit Cards + Best Balance Transfer Credit Cards + Best Cash Back Credit Cards + Best Credit Card Welcome Bonuses + Best Credit Cards to Build Credit + SELECT + All Loans + Find the Best Personal Loan for You + Best Personal Loans + Best Debt Consolidation Loans + Best Loans to Refinance Credit Card Debt + Best Loans with Fast Funding + Best Small Personal Loans + Best Large Personal Loans + Best Personal Loans to Apply Online + Best Student Loan Refinance + SELECT + All Banking + Find the Savings Account for You + Best High Yield Savings Accounts + Best Big Bank Savings Accounts + Best Big Bank Checking Accounts + Best No Fee Checking Accounts + No Overdraft Fee Checking Accounts + Best Checking Account Bonuses + Best Money Market Accounts + Best CDs + Best Credit Unions + SELECT + All Mortgages + Best Mortgages + Best Mortgages for Small Down Payment + Best Mortgages for No Down Payment + Best Mortgages with No Origination Fee + Best Mortgages for Average Credit Score + Adjustable Rate Mortgages + Affording a Mortgage + SELECT + All Insurance + Best Life Insurance + Best Homeowners Insurance + Best Renters Insurance + Best Car Insurance + Travel Insurance + SELECT + All Credit Monitoring + Best Credit Monitoring Services + Best Identity Theft Protection + How to Boost Your Credit Score + Credit Repair Services + SELECT + All Personal Finance + Best Budgeting Apps + Best Expense Tracker Apps + Best Money Transfer Apps + Best Resale Apps and Sites + Buy Now Pay Later (BNPL) Apps + Best Debt Relief + SELECT + All Small Business + Best Small Business Savings Accounts + Best Small Business Checking Accounts + Best Credit Cards for Small Business + Best Small Business Loans + Best Tax Software for Small Business + SELECT + All Taxes + Filing For Free + Best Tax Software + Best Tax Software for Small Businesses + Tax Refunds + Tax Brackets + Tax Tips + Tax By State + Tax Payment Plans + SELECT + All Help for Low Credit Scores + Best Credit Cards for Bad Credit + Best Personal Loans for Bad Credit + Best Debt Consolidation Loans for Bad Credit + Personal Loans if You Don't Have Credit + Best Credit Cards for Building Credit + Personal Loans for 580 Credit Score or Lower + Personal Loans for 670 Credit Score or Lower + Best Mortgages for Bad Credit + Best Hardship Loans + How to Boost Your Credit Score + SELECT + All Investing + Best IRA Accounts + Best Roth IRA Accounts + Best Investing Apps + Best Free Stock Trading Platforms + Best Robo-Advisors + Index Funds + Mutual Funds + ETFs + Bonds * USA * INTL * watchlive Search quotes, news & videos Watchlist SIGN IN logo Markets Business Investing Tech Politics CNBC TV Watchlist Menu Politics Former Facebook and Nike diversity manager gets 5 years in prison for $5 million fraud Published Thu, May 16 20243:43 PM EDTUpdated Thu, May 16 20248:10 PM EDT thumbnail Dan Mangan@_DanMangan WATCH LIVE Key Points * A former diversity manager at Facebook and Nike was sentenced to five years and three months in prison for stealing a total of more than $5 million from those companies. * Barbara Furlow-Smiles, who pleaded guilty to wire fraud in the case in December, stole more than $4.9 million from Facebook "utilizing a scheme involving fraudulent vendors, fake invoices, and cash kickbacks," said Atlanta U.S. Attorney Ryan Buchanan. * Furlow-Smiles, 38, used the money she stole "to fund a luxury lifestyle in California, Georgia and Oregon," according to Buchanan's office. Barbara Furlow-Smiles attends the 2020 Sisters' Awards at Skirball Cultural Center on March 08, 2020 in Los Angeles, California. Robin L. Marshall | Getty Images A former diversity manager at Facebook and Nike was sentenced to five years and three months in prison for stealing more than $5 million from those companies that had been earmarked for DEI initiatives, federal prosecutors said. Georgia resident Barbara Furlow-Smiles, who pleaded guilty to wire fraud in the case in December, stole more than $4.9 million from Facebook "utilizing a scheme involving fraudulent vendors, fake invoices, and cash kickbacks," Atlanta U.S. Attorney Ryan Buchanan said in a statement. "After being terminated from Facebook, she brazenly continued the fraud as a DEI leader at Nike, where she stole another six-figure sum from their diversity program," Buchanan said. Furlow-Smiles, 38, used the money she stole "to fund a luxury lifestyle in California, Georgia and Oregon," according to Buchanan's office, which had asked a judge to sentence her to 61/2 years. She was a lead strategist and global head of employee resource groups and diversity engagement at Facebook, the subsidiary of Meta. She was not Facebook's top executive for diversity, equity and inclusion efforts. Prosecutors said that while at Facebook she linked PayPal, Venmo and Cash App accounts to her Facebook credit cards and then used those accounts to pay her friends, relatives, and others for purported goods and services for the company that were never delivered. Read more CNBC politics coverage * DOJ charges brothers with $25 million Ethereum heist that took 12 seconds * Biden and Trump agree to debate June 27 and Sept. 10 * Top Democrat presses oil CEOs for details of Trump Mar-a-Lago fundraising dinner * TikTok creators sue government, say divestiture law violates First Amendment "The vast majority of the money" that went to those other people was kicked back to Furlow-Smiles, prosecutors said. Prosecutors in a sentencing memo said that Meta determined that Furlow-Smiles began the scheme within months of joining the company in 2017, and that an investigation found she had "manipulated individuals who were close to, and trusted her, including former interns," who considered her a mentor. After she was fired from Facebook in mid-2021, Furlow-Smiles worked for Nike from November of that year to February 2023 as senior director of diversity, equity & inclusion. While there, she executed a theft scheme similar to the one she did at Facebook, prosecutors said. Furlow-Smiles, who lives in Marietta, was sentenced Monday in Atlanta federal court. District Judge Steven Grimberg also ordered her to pay restitution of $4.98 million to Facebook, and another $121,000 to Nike. Meta previously told CNBC that the company cooperated with law enforcement in the investigation of Furlow-Smiles, who must report to prison by July 22. Prosecutors in their sentencing memo said that in addition to the money Furlow-Smiles stole from the company, Meta lost more than $4.5 million "in addition to other expenses, such as attorney's fees, which were incurred as a result of Meta having to uncover and investigate her fraud scheme." "As Meta notes, 'the harm from [Furlow-Smiles'] criminal conduct cannot be measured purely in financial terms,'" prosecutors recounted in their memo. "Her 'crimes also resulted in anguish amongst those employees that worked closely with her.'" Nike told prosecutors that she was "entrusted as a leader for [the] company, that she would embody the value of 'Doing the Right Thing' which is one of NIKE's key maxims," the prosecutor said in their memo. "As Nike explains, '[t]o say that Ms. Furlow-Smiles violated our trust would be an understatement. The fraud committed by Ms. Furlow-Smiles violated the trust of and devastated the employees who managed and worked with her.' " Nike also told prosecutors her "complete lack of accountability or remorse was incredibly disappointing," according to the memo. A lawyer for Furlow-Smiles did not have an immediate comment. A spokesperson for Meta declined to comment and referred CNBC to the press release issued in the case by prosecutors. Nike did not immediately respond to a request for comment. CNBC logo * * * * * * * * Subscribe to CNBC PRO * Subscribe to Investing Club * Licensing & Reprints * CNBC Councils * Select Personal Finance * CNBC on Peacock * Join the CNBC Panel * Supply Chain Values * Select Shopping * Closed Captioning * Digital Products * News Releases * Internships * Corrections * About CNBC * Ad Choices * Site Map * Podcasts * Careers * Help * Contact * News Tips Got a confidential news tip? We want to hear from you. Get In Touch * CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. * Advertise With Us Please Contact Us * Privacy Policy * California Consumer Privacy Act (CCPA) Opt-Out Icon * CA Notice * Terms of Service (c) 2024 CNBC LLC. All Rights Reserved. A Division of NBCUniversal Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Market Data Terms of Use and Disclaimers Data also provided byReuters logo comscore