Recently, a former diversity manager at Facebook and Nike, Barbara Furlow-Smiles, was sentenced to five years and three months in prison for stealing over $5 million from the companies earmarked for DEI (diversity, equity, and inclusion) initiatives. Furlow-Smiles, a resident of Georgia, pleaded guilty to wire fraud in December after being accused of orchestrating a complex scheme involving fraudulent vendors, fake invoices, and cash kickbacks. This case sheds light on the consequences of employee fraud in DEI initiatives and the impact it has on the companies involved.
Furlow-Smiles stole more than $4.9 million from Facebook by linking PayPal, Venmo, and Cash App accounts to her Facebook credit cards and using those accounts to pay friends, relatives, and others for goods and services that were never delivered. The money that went to these individuals was then kicked back to Furlow-Smiles, allowing her to fund a lavish lifestyle across various states. After being terminated from Facebook, she continued her fraudulent activities at Nike, where she stole another six-figure sum from their diversity program.
The sentencing memo highlighted the significant financial losses incurred by both Facebook and Nike as a result of Furlow-Smiles’ actions. Meta, the parent company of Facebook, lost over $4.5 million in addition to other expenses such as attorney’s fees related to uncovering and investigating her fraud scheme. Moreover, the memo mentioned the emotional toll her crimes took on employees who considered her a mentor and trusted colleague, causing anguish and devastation within the organizations.
The prosecutors’ memo emphasized the breach of trust and lack of accountability demonstrated by Furlow-Smiles in her role as a DEI leader at both Facebook and Nike. Nike expressed disappointment in her actions, stating that she violated the trust of employees who managed and worked with her, disregarding the company’s core values. Furlow-Smiles’ complete lack of remorse further compounded the impact of her fraudulent activities, adding to the sense of betrayal felt by those affected.
The case of Barbara Furlow-Smiles serves as a cautionary tale for companies regarding the importance of implementing robust internal controls and oversight mechanisms to detect and prevent employee fraud. Additionally, it underscores the need for ethical leadership and a culture of accountability within organizations, where employees are held to high standards of conduct and integrity. By learning from this case and taking proactive measures to safeguard against fraud, companies can protect their DEI initiatives and uphold the trust of their employees and stakeholders.
The sentencing of Barbara Furlow-Smiles for embezzling funds from DEI initiatives at Facebook and Nike highlights the detrimental consequences of employee fraud on organizations and their employees. It underscores the importance of maintaining ethical standards, accountability, and transparency to prevent such incidents in the future. As companies strive to promote diversity, equity, and inclusion, it is crucial to remain vigilant and address any potential risks or vulnerabilities that may compromise the integrity of their programs.
Leave a Reply