US Department of Justice announced in a press release that on Friday, former Netflix vice president of IT Michael Kail was convicted in 28 fraud and money laundering cases by a federal jury.
According to the evidence displayed by the federal jury they said, Kail was indicted in 2018. He used his position to create a “pay-to-play” scheme. In that scheme, he approved all the contracts with outside tech companies who were looking to do their business with Netflix in exchange for taking bribes and kickbacks.
According to DOJ’s press, Kail approved a total of nine contracts with outside tech companies in exchange for bribes and kickbacks as well as stock options to which is more than $500,000.
The jury also ordered the Kail for the penalty to the Government by a home which he purchased through his illegal scheme in Los Gatos, California.
US Attorney Stephanie Hinds said in a press release that in any business era ransom makes weak to its fair competition and innovation and especially in Silicon Valley’s highly competitive environment and cutting-edge innovation.
Netflix and every company expect and deserve from its employees’ honest services. Still, Netflix, vice president of IT operations Michael Kail, misuses its power and approves the contract with the lower-tech companies. He did that to unlock some money and kickbacks for himself.
Netflix declined a comment that Netflix sued Kail and accusing him of fraud and breaching his fiduciary duties after he left the company in 2014 to take a role as CIO of Yahoo.
Kail faces up to 20 years in prison or $250,000 twice the gross amount he gets as a part of the scheme and twice the amount of total Netflix loss, whichever in more or up to 10 years in prison and $250,000 to each money laundering conviction, according to the DOJ.
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Source: FORMER NETFLIX EXECUTIVE CONVICTED OF $500,000 FRAUD
