A former executive at Facebook has pleaded guilty to fraud after stealing over $4 million from the social media company. Barbara Forlo Smiles, 38, managed several diversity, equity, and inclusion programs at Facebook from January 2017 to September 2021. During that time, she embezzled funds through a "sophisticated scheme" that prosecutors say involved "fake vendors, fake invoices, and cash kickbacks."
According to prosecutors, Forlo Smiles used the stolen money to support a lavish lifestyle in California and Georgia. They reported that Forlo Smiles, who pleaded guilty in a federal court in Atlanta on Monday, made Facebook pay individuals for goods and services that were never actually provided to the company, then had those individuals pay her kickbacks.
Among these individuals were friends, relatives, former interns, nannies, babysitters, hairstylists, and her college professor. U.S. Attorney Ryan Buchanan stated, "The defendant abused her position of trust as a global executive for diversity at Facebook to defraud the company of millions of dollars, disregarding the harmful consequences of undermining the significance of its diversity, equity, and inclusion mission."
Buchanan added, "Out of greed, she exploited her time to orchestrate a complex criminal scheme where fraudulent vendors paid cash kickbacks. She even involved her relatives, friends, and other associates in her crimes, all to fund a lavish lifestyle through fraud instead of hard work and honesty."
As part of the scheme, Forlo Smiles linked her PayPal, Venmo, and Cash App accounts to her company credit cards and used these accounts to pay money to friends, relatives, and other partners for goods and services allegedly provided to Facebook.
It is unclear whether any of Forlo Smiles' associates have been charged in connection with the case. Prosecutors noted that Meta, Facebook's parent company, provided assistance and cooperation in the criminal investigation. A Meta spokesperson stated, "We are cooperating with law enforcement in this case involving this former program manager, and we will continue to do so."
Forlo Smiles, who resides in Atlanta, is scheduled for sentencing on March 19 and is currently free on a $5,000 bond.
