In a shocking case of corporate fraud, Barbara Furlow-Smiles, the former top Diversity, Equity, and Inclusion (DEI) manager at Facebook, has pleaded guilty to embezzling over $4 million from the social media giant. The scheme, which involved diverting funds through fake vendors, has raised concerns about the abuse of trust within the company.

According to the US Attorney's Office in Georgia, Furlow-Smiles served as the head of DEI initiatives at Facebook, now known as Meta, from 2017 to 2021. Federal prosecutors revealed that she systematically funneled money by linking payment apps to her Facebook credit card and creating false expense reports.

Court documents viewed by Business Insider showed that Furlow-Smiles intentionally devised a scheme to defraud Facebook through fraudulent pretenses, representations, and promises. She would submit false charges as expense reports, claiming that vendors associated with Facebook provided goods and services for various programs and events, when in reality they had not.

To complete the embezzlement, Furlow-Smiles had the "vendors" pay her kickbacks in cash or transfer funds to her husband's account. These payments were often concealed within other items, like T-shirts, and sometimes sent via Federal Express or mail.

Investigations revealed that Furlow-Smiles used her position at Facebook to bring in vendors who were owned by friends and associates. Once these vendors were approved by Facebook, she would inflate the expense reports to generate extra money, which was then sent back to her through kickbacks.

The fraudulently obtained funds were used for various personal expenses, including a payment of $10,000 to an artist for specialty portraits and over $18,000 for preschool tuition. This misappropriation of funds highlights the abuse of trust and the disregard for the integrity of Furlow-Smiles' DEI mission at Facebook.

Commenting on the case, U.S. Attorney Ryan K. Buchanan stated, "This defendant abused a position of trust as a global diversity executive for Facebook to defraud the company of millions of dollars, ignoring the insidious consequences of undermining the importance of her DEI mission."

Furlow-Smiles is now scheduled to be sentenced in March 2024. Her actions have not only tarnished her own reputation but have also raised questions about the effectiveness of internal controls within one of the world's largest social media platforms. Facebook, now Meta, will likely face increased scrutiny over its financial processes and oversight measures going forward.