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Ex-Microsoft manager in $1m expenses fraud rap

Alleged domain name scammer denies charges

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A former Microsoft worker who managed the IT giant's domain name trades faces charges over an alleged $1m expenses scam.

Carolyn Gudmundson, 44, of Kirkland, Washington, faces 11 counts of wire fraud and seven counts of mail fraud over allegations she systematically ripped off Microsoft, Expedia, and a Californian domain name firm between 2000 and 2004.

The alleged scam involved submitting expense reports to Microsoft based on forged receipts featuring inflated domain name prices. On other occasions, Gudmundson (who held a company American Express card during her time with Microsoft) received "expenses" without submitting receipts.

Gudmundson also billed travel site Expedia with expenses for domain name purchases actually made on its behalf by Microsoft. Another alleged scam relied on convincing Marksman, a California domain acquisition firm, that a certain "G M Lossman" was owed money for the transfer of multiple domain names to Microsoft. Cheques made out to Lossman were allegedly posted to her mother's address before being cashed by Gudmundson.

If convicted on all charges, Gudmundson faces a maximum 20 years' imprisonment and fines of up to $250,000. Gudmundson, who faces committal proceedings on 13 December, reportedly intends to plead not guilty. ®

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