A federal jury found a former Netflix CEO guilty Friday of receiving lucrative stock options and more than half a million dollars in bribes and denials of technology companies to approve contracts with the giant streaming.
Michael Kyle, 49, is a former Netflix vice president who headed the company’s Internet technology department.
“We are very disappointed with the jury’s verdict,”
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Jane said Kail has helped Netflix succeed as a modern technology company. He intends to appeal, she said.
In 2018, Kyle was charged with 19 counts of physical fraud, three counts of mail fraud and seven counts of money laundering. He pleaded not guilty to the crimes.
The trial began on April 19 in federal court in San Jose, California. Jurors found him guilty on 28 of the 29 counts.
Prosecutors say Kail accepted more than $ 500,000 in kickbacks – as well as valuable stock options – in exchange for approving millions of dollars in contracts for nine technology companies seeking to do business with Netflix between February 2012 and July 2014. г.
Kail created and controlled the limited liability company Unix Mercenary LLC to receive bribes, finance personal expenses and buy a home in Los Gatos, California, prosecutors said.
Netflix prohibits its employees from having conflicts of interest and requires them to disclose actual or apparent conflicts of interest and to report gifts from people or organizations they want to sell to the company, authorities said. Kyle worked at Netflix from 2011 to July 2014.
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He could face up to 20 years in prison and fines and is likely to be sentenced in three months. Meanwhile, he remains free of bonds.
Netflix declined to comment on the verdict.
“Not only did Mr. Kyle deprive Netflix of its money and resources by abusing its position as vice president of IT operations,” FBI Special Agent Craig D. Fair said in a statement, “he created a pay-per-play environment he stole to work with a pioneer in the industry from honest, hard-working Silicon Valley companies. “