A former diversity program manager at Facebook has admitted to stealing over $4 million from the company through fraudulent business deals in exchange for kickbacks, as per the Justice Department.
Barbara Farlow Smiles, who served as Facebook’s chief strategist and global head of employee resource groups and diversity engagement, used the stolen funds to support a lavish lifestyle across multiple states, according to prosecutors.
From January 2017 to September 2021, Farlow Smiles oversaw the diversity, equity, and inclusion (DEI) program at Facebook and was entrusted with DEI initiatives and operations, as well as engagement programs, as per the Department of Justice.
Authorities disclosed that Farlow Smiles had access to company credit cards and had the authority to approve invoices, and used various individuals, including friends and relatives, to funnel kickbacks to her.
Individuals allegedly recruited by Farlow Smiles to participate in the kickback scheme included former interns, a college tutor, a hairstylist, babysitter, and a nanny, as per authorities.
It remains uncertain if anyone associated with Farlow Smiles has been charged in connection with the incident.
Farlow Smiles also misled Facebook into providing funds to an organization that did not deliver any kickbacks, including payments to an artist and an unnamed preschool.
To avoid scrutiny, Farlow Smiles submitted false expense reports, falsely claiming that individuals had provided marketing or merchandise at Facebook event vendors.
Farlow Smiles “abused her position at Facebook to defraud the company and undermine the importance of its DEI mission,” said U.S. Attorney Ryan K. Buchanan after her guilty plea on Tuesday.
“Driven by greed, she orchestrated an elaborate criminal scheme, engaging fraudsters to pay kickbacks in cash, and involving her relatives, friends, and other associates in the crime, all to finance her lavish lifestyle through fraud rather than through hard, honest work,” Buchanan added.
“Farlow Smiles used lies and deception to defraud both vendors and Facebook employees,” said FBI Special Agent Kelly Farley.
The Justice Department commended Mr. Mehta for providing valuable assistance and cooperation during the investigation.
“We are cooperating with law enforcement in the case involving this former program manager and will continue to do so,” Mehta said in a statement.
As part of a two-step fraud scheme, Farlow Smiles used apps such as Venmo and PayPal linked to her company credit card, and submitted false expense reports to cover her tracks.
Most employees were reportedly unaware that the funds were coming from Facebook and returned the funds to Farlow Smiles in cash or through direct deposit. Federal authorities disclosed that the cash was sometimes delivered to Farlow Smiles wrapped in t-shirts and other items.
In the second part of her plan, Farlow Smiles directed Facebook to use businesses owned by friends and then approved “fraudulent and inflated invoices” on behalf of the vendors in exchange for kickbacks.
Farlow Smiles is set to be sentenced on March 19, 2024.
Source: nypost.com
