First Passport, now fraud: former MS employee charged

A former Microsoft employee has been charged with fraudulently charging the company US$1 million in domain name registration fees.

The former Microsoft employee associated with the company's notorious December 1999 Hotmail outage has been charged with fraud.

Carolyn Gudmundson was indicted Thursday on charges that she raked in over US$1 million during a four-year period by falsifying expense reports she filed for domain name registration charges.

Gudmundson, a former program manager at Microsoft's MSN division, is charged with using her position within the company to run a number of different scams between 2000 and 2004. According to US attorneys, she would use her corporate American Express charge for domain name registration fees, but then submit copies of invoices that carried inflated charges.

In another alleged scam, she is charged with convincing a Microsoft contractor, Marksmen Inc., to send checks to her attention at Microsoft, claiming they were being used to repay a Microsoft employee, G.M. Lossman, for transferring domain names into Microsoft's control. Those checks were cashed in Gudmundson's mother's account, according to the US Department of Justice.

Marksmen's president declined to comment for this story.

She is also accused of billing Microsoft for domain name registrations that had already been paid for its Expedia online travel service. Microsoft sold off Expedia in 2001.

Gudmundson was arrested Thursday night and is set to appear in federal court in Seattle on Friday afternoon. She faces up to 20 years in prison and a US$250,000 fine on the fraud charges.

Microsoft was not immediately available to comment on Gudmundson's arrest.

This is not her first time in the spotlight. In December 1999 Gudmundson was listed as the administrative contact responsible for Microsoft's Passport.com domain when the service stopped working, knocking 60 million Hotmail users offline. The cause? Someone forgot to renew the domain name registration.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert McMillan

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?