Carolyn M. Gudmundson, a former Microsoft program manager for MSDN faces charges on 18 felony counts of wire and mail fraud in the U.S. District Court of Washington, Western District of Washington and Seattle.

Gudmundson, 44, currently living in Kirkland, Wash., is accused of stealing more than $1 million from Microsoft and two of its business partners-- Expedia and a California-based domain acquisition service, Marksman –between June 29, 2000 and January 22, 2004 by using exaggerated expense reports among other methods.

Marksmen ‘s president declined to comment for this report. Microsoft was not available for comments either.

Despite her resignation and $30,000 payment to Microsoft at that time to “resolve the matter,” Gudmundson plans to plead no guilty.

"Many of the things that Mrs. Gudmundson was doing were in the normal part of her job and she was authorized to do them," her attorney C. James Frush told The Seattle Times on Friday after appearing in court.

According to court papers, Gudmundson’s bank account revealed 18 transactions, including one for $112,295, that came via wire and mail during that time and totaled roughly $800,000.

If convicted, Gudmundson faces up to 20 years in prison and a $250,000 fine on the fraud charges. She is scheduled for arraignment this Thursday.