Ex-Netflix Tech VP Gets 30 Months for Kickbacks, Bribery

A former Netflix tech executive was sentenced Monday to 30 months in federal prison for doling out lucrative contracts to nine Netflix tech vendors in exchange for bribes and kickbacks, said DOJ. A San Jose jury convicted Michael Kail, 52, in April on 28 of 29 counts of mail fraud, money laundering and other charges in connection with a pay-for-play scheme he ran until his three years as Netflix vice president-internet technology operations ended in July 2014, it said. Acting U.S. Attorney Stephanie Hinds said Kail used his “highly compensated Netflix position to siphon cash and valuable stock options from his tech vendors, the same vendors whose Netflix contracts he signed and whose technologies he pushed his teams to use.” Kail pocketed more than $500,000 in cash and stock options from the outside vendors, using his kickback payments to pay his personal expenses and to buy a home in Los Gatos, California, said DOJ. When personally questioned by Netflix CEO Reed Hastings about potential wrongdoing, Kail falsely denied he was receiving improper compensation from Netflix vendors, said Kail's April 2018 indictment. Hastings testified at Kali's trial as a prosecution witness. U.S. District Judge Beth Labson Freeman ordered Kail to surrender March 8 to begin serving his sentence. Neither Kail's lawyers nor Netflix responded Wednesday to requests for comment.