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 more than $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 U.S. 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 U.S. Department of Justice.

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