Former Netflix executive convicted of fraud after orchestrating more than $500,000 in bribes and kickbacks
- Ex-Netflix IT chief Michael Kail on Friday was convicted of 28 counts of
fraudand money laundering.
- Kail created a "pay-to-play" scheme, taking bribes and kickbacks from tech startups hoping to do business with
- Kail, who was indicted in 2018, must also forfeit a Los Gatos home he purchased with the funds.
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 US 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.
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. Netflix declined to comment.According to the DOJ, Kail faces a maximum sentence of up to 20 years in prison and a fine - either $250,000, twice the gross amount he pocketed as part of the scheme, or twice the amount of Netflix's loss, whichever is greatest - for each wire or mail fraud conviction, as well as up to 10 years in prison and a $250,000 fine for each money laundering conviction.