Former Netflix executive Michael Kail has been found guilty in a money-laundering trial. Kail will appeal the outcome of the three-year lawsuit filed by the federal government with his lawyer. But the accusations against the former Netflix executive are severe.
Former Netflix executive sentenced for 28 offenses including money laundering
Netflix sued Michael Kail, the content platform’s vice president of information technology operations from 2011 to 2014, 2014. In that case, Netflix used the executive’s position to allege irregularities in acquisitions of information technology.
Accordingly, Kail transferred the money primarily to his consulting firm in his purchases. However, he signed a confidential agreement with Netflix and Kail, and the case was inconclusive.
The federal government filed 29 charges in 2018 against the former Netflix executive on money laundering charges. Those charges included nineteen bank frauds, seven money laundering, and three mail frauds. The court found Michael Kail guilty on 28 of those 29 charges.
The details of the charges are also interesting. In 2011 and 2014, Kail headed the IT unit. In 2012, the executive set up a shell company through a bank account that did not belong to him. Kail received a total of more than $500,000 in bribes from nine technology companies that provided products and services to Netflix.
The manager, who received commissions on acquisitions, was spotted by Netflix in 2014. It also emerged that Kail had also committed fraud over the stock options of these tech companies.
One wonders what kind of collusion Netflix made with Kail in 2015. The firm has chosen not to comment on the matter at this time.
With the court’s decision, Kail received a maximum of 20 years in prison and a $250,000 fine for money laundering. He also faces ten years in prison for each bank or mail fraud conviction. If Kail agrees to cover Netflix’s gross loss, the court will reduce her prison sentence.
The former manager was released on bail after the court ruling. But in three months, Kail’s sentencing hearing will begin. The former executive’s lawyer went to the Supreme Court to appeal the decision.