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!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

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?