Former Netflix IT Executive Convicted of Fraud and Taking Bribes

Former Netflix IT Executive Convicted of Fraud and Taking Bribes
Published on May 01, 2021 at 08:34PM
Business Insider reports:

Former Netflix vice president of IT Michael Kail was convicted by a federal jury on Friday of 28 counts of fraud and money laundering, the U.S. Department of Justice announced in a press release.

Kail, who was indicted in 2018, used his position to create a “pay-to-play” scheme where he approved contracts with outside tech companies looking to do business with Netflix in exchange for taking bribes and kickbacks, according to evidence presented to the jury, the release said. Kail accepted bribes or kickbacks from nine different companies totaling more than $500,000 as well as stock options, according to the Department of Justice’s press release…

Netflix sued Kail after he left the company in 2014 to take a role as Yahoo’s CIO, accusing him of fraud and breaching his fiduciary duties.

One FBI agent says that Kail “stole the opportunity to work with an industry pioneer from honest, hardworking, Silicon Valley companies,” according to the details in the Department of Justice statement:

To facilitate kickback payments, the evidence at trial showed that Kail created and controlled a limited liability corporation called Unix Mercenary, LLC. Established on February 7, 2012, Unix Mercenary had no employees and no business location. Kail was the sole signatory to its bank accounts…

Kail faces a maximum sentence of twenty years in prison and a fine of $250,000, or twice his gross gain or twice the gross loss to Netflix, whichever is greater, for each count of a wire or mail fraud conviction, and ten years in prison and a fine of $250,000 for each count of a money laundering conviction.

Read more of this story at Slashdot.

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Håkan Dahlström
I am Håkan Dahlström, a photographer living in Malmö, Sweden.
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