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Ex-Microsoft domain manager accused of stealing $1M

Carolyn Gudmundson, who was responsible for managing and registering Microsoft's Internet domain names between 2000 and 2004, has been indicted on allegations of stealing more than $1 million from Microsoft and Expedia, according to court papers and a statement released today by the U.S. Attorney in Seattle.

The 18-count indictment (PDF, 10 pages) alleges that Gudmundson used a variety of tactics to inflate her expense reimbursements. For example, prosecutors allege that she used her corporate American Express card to pay for domain registrations and then submitted doctored receipts to receive more than she paid.

Gudmundson, 44, of Kirkland, was arrested last night and is scheduled to make her initial appearance in court this afternoon. The court docket doesn't yet list an attorney representing her. She has been indicted on 11 counts of wire fraud and seven counts of mail fraud. The U.S. Attorney's Office says those offenses, on conviction, are punishable by up to 20 years in prison and a $250,000 fine.

A Microsoft spokesman wasn't immediately available to comment.

More to come.

Update, 1:20 p.m.: The indictment and news release describe two additional tactics that Gudmundson is alleged to have used: With Expedia, prosecutors say, she submitted invoices for personal reimbursement of domain registration charges that had actually been paid under an agreement between Microsoft and the online travel company.

In other cases, the indictment alleges that Gudmundson told an employee at an outside domain-name acquisition company that a person named "G.M. Lossman" was owed money for transferring domain names to Microsoft. The indictment says Lossman was fictitious. According to the indictment, Gudmundson told the employee to send the checks to her Microsoft address "so that she could personally deliver the checks" to Lossman. The indictment says many of the domains were, in fact, already owned by Microsoft.

I'm going to Gudmundson's court appearance now. More to come later.

Update, 3:30 p.m.: Gudmundson's lawyer, C. James Frush, said outside the courtroom that he expects Gudmundson to enter a plea of not guilty at her arraignment, which is scheduled for Dec. 13. (Note: Date corrected.) Frush said that, even if the allegations are true, the $1 million figure cited by the U.S. Attorney's office is larger than he understands the case to involve. He cited figures closer to $400,000 to $500,000. But he reiterated that he expects Gudmundson to plead not guilty.

But Catherine Crisham, an assistant U.S. attorney, said the government believes it can prove at trial that the loss to Microsoft was more than $1 million.

During the court appearance, U.S. Magistrate Judge Monica Benton approved the release of Gudmundson on her own recognizance. Gudmundson was silent except to respond quietly to the judge's questions. Her brother, husband and father-in-law were in the courtroom.

Update, 4:21 p.m.: Microsoft's statement on the indictment: "We can confirm that Microsoft worked closely with authorities on this investigation. We take employee theft seriously and have internal measures in place to help identify fraudulent activities."

Posted by at December 7, 2007 12:39 p.m.
Category: Employee issues

Comments

#73659

Posted by homer711 at 12/7/07 12:55 p.m.

She figured Bill wouldn't miss a mil!