Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors • Hacker News Board

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#121

Post by jbkiv » Fri, Dec 17, 2021, 5:43 PM UTC

This is not an uncommon practice in the Silicon Valley. Startup wants to business with Big Co., invites Big Co.'s decision maker (VP Marketing, CIO, CTO, CFO) to join the "board of advisors". Then startups pays for expenses, travel and grant "stock options" to Big Co. senior manager.

Understand that ANY product has a "side" price tag, paid by granting options or "payment for expenses" to the senior individual. Another way to look at that. Ask ANY member of your board of advisors to disclose ANY conflict of interest.

If StartUp sells product/services/SaaS to BigCo. then BigCo. "advisor" should disclose ANY payment, direct or indirect, travel or non-travel, and ANY stock options.

This is what had to be done with the large drug companies, forcing them to disclose payments to providers/medical doctors who had the authority to buy drugs. Full disclosure + penalties for lack of disclosure ---> that was the end for the drug sales rep who were doling "educational conference tickets, all expenses paid for you and your spouse, ALL expenses paid, and of course compensation for your time". Of course said conference had to happen in Tahiti, San Francisco, Seychelles, etc...

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#122

Post by BrazzVuvuzela » Fri, Dec 17, 2021, 5:43 PM UTC

bko wrote: post #109

PragmaticPulp wrote: post #13

Every time this story comes up, the comments are filled with people proclaiming that kickbacks like this are totally normal and very common. I can't tell how much of it is random people projecting their cynicism onto the business world, or if it's people who have been part of bribery/kickback schemes themselves trying to normalize the behavior online. Either way, cases like this should make it clear that the behavior…

My question is how this could lead to jail time? I mean, its against policy, the employer can sue for damages, fire the person, etc. But to throw someone in jail for breaking essentially a corporate policy seems really off.

> But to throw someone in jail for breaking essentially a corporate policy seems really off.

It "seems off" because that obviously isn't what happened.

> Jury Earlier Returned 28 Guilty Verdicts Convicting Michael Kail of Fraud and Money Laundering for Pay-To-Play Payments from Tech Startups Seeking Netflix Contracts

These are crimes, not mere violations of corporate policy.

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#123

Post by [deleted] » Fri, Dec 17, 2021, 5:45 PM UTC

duffpkg wrote: post #83

I created a company around an Open Source Electronic Medical Records system I also created, ClearHealth. It took me a couple of years to realize we were losing deals for health systems not because our system was bad (it was great), not because our sales teams were bad (they were great) but because we weren't engaging in kick-backs and outright bribery. This has become such a normalized part of business at institution…

[deleted]

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#124

Post by humanistbot » Fri, Dec 17, 2021, 5:45 PM UTC

d0mine wrote: post #78

mc32 wrote: post #49

Earlier quoted context omitted.

I’m sure every employee has to read their company’s code of conduct and those are quite unambiguous about what’s allowed and what isn’t and that which isn’t is serious and will get you fired --no company wants to have to mobilize lawyers and waste hundreds of professionally billed hours for an employee violating regulations.

Usually such things as CoC are worded in such a way that everyone is guilty. It is a tool by those in power to dismiss anyone they like.

"You must report all gifts from entities seeking to sell products or services to the company" seems pretty unambiguous.

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#125

Post by jjulius » Fri, Dec 17, 2021, 5:46 PM UTC

jannyfer wrote: post #111

colejohnson66 wrote: post #80

Earlier quoted context omitted.

Am I reading your comment correctly? GP says that, over 30 months, the average American makes $125k. Given a $68k per year average that you provide, that's $170k after 30 months, which is even more than GP estimated. Even if the average were $40k/year, that's still $100k after 30 months.

Looks like jjulius used 20 months in a year.

I used 12 months in a year and went up to 20 months, too tired to realize that they were talking about 2.5 years instead of 1.5. Original comment edited, my mistake, let's all go back to sleep now.

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#126

Post by AtlasBarfed » Fri, Dec 17, 2021, 5:46 PM UTC

PragmaticPulp wrote: post #13

Every time this story comes up, the comments are filled with people proclaiming that kickbacks like this are totally normal and very common. I can't tell how much of it is random people projecting their cynicism onto the business world, or if it's people who have been part of bribery/kickback schemes themselves trying to normalize the behavior online. Either way, cases like this should make it clear that the behavior…

More to the point, virtually every senior member of Presidential administrations do this almost blatantly, big-D or big-R, doesn't matter.

This was hundreds of thousands. Those are billions.

What's the difference? The person who got caught was a small fry and couldn't pull the strings.

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#127

Post by dylan604 » Fri, Dec 17, 2021, 5:47 PM UTC

PragmaticPulp wrote: post #13

Every time this story comes up, the comments are filled with people proclaiming that kickbacks like this are totally normal and very common. I can't tell how much of it is random people projecting their cynicism onto the business world, or if it's people who have been part of bribery/kickback schemes themselves trying to normalize the behavior online. Either way, cases like this should make it clear that the behavior…

Oh please. Ever watched Mad Men, or any other tv/film that shows the wining and dining of prospective clients by a sales person/team? Every time a sales person spends money on a prospective client is written off as an expense, so the gov't is pretty much condoning it.

There are tons of stories of big pharma sending doctors to lavish resorts in the guise of a "conference". Ever heard of payola? The music business has been based on bribes. Why would you think of the film business being different? Hell, the states are involved just as much with tax incentives to entice productions to use their state/cities as location for that production.

You're being quite cynical trying to wrap any person with knowledge of these payout schemes as being involved/complicit.

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#128

Post by horsawlarway » Fri, Dec 17, 2021, 5:47 PM UTC

pyronite wrote: post #105

wayoutthere wrote: post #96

Earlier quoted context omitted.

It’s a side effect of having so many laws that it’s impossible not to break some of them. And this is coming from someone on the left.

I'm not aware of any laws I've unintentionally broken. Which kinds of laws are you speaking of?

Ever been under 18 and owned a spray paint can or a permanent marker? Crime.

Ever connected to an open wifi network without directly confirming with the owner you're allowed? Crime.

Ever held your phone while driving? Crime. Happen to also be headed downhill and hit 1mph over the limit? Double crime!

Ever walked across your street outside of clearly marked crossings? Crime.

Ever sung happy birthday in public? Crime.

Ever played a poker game for small stakes at home? Crime.

Ever had a pet and not registered them with your county? Crime.

Ever peed outside? Crime.

Ever bought something online and not reported it for taxes? Crime.

Ever sat on the sidewalk? Crime.

The list goes on and on.

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#129

Post by __alexs » Fri, Dec 17, 2021, 5:48 PM UTC

PragmaticPulp wrote: post #13

Every time this story comes up, the comments are filled with people proclaiming that kickbacks like this are totally normal and very common. I can't tell how much of it is random people projecting their cynicism onto the business world, or if it's people who have been part of bribery/kickback schemes themselves trying to normalize the behavior online. Either way, cases like this should make it clear that the behavior…

The behaviour of many execs I have worked with would be explained well by this sort of arrangement, but it could equally have been a mix of stubbornness and having no clue. It's politer to assume it was corruption.

Re: Netflix Executive Sentenced to 30 Months for 700K Bribes, Kickbacks from Vendors

#130

Post by PragmaticPulp » Fri, Dec 17, 2021, 5:48 PM UTC

vishnugupta wrote: post #114

PragmaticPulp wrote: post #13

Every time this story comes up, the comments are filled with people proclaiming that kickbacks like this are totally normal and very common. I can't tell how much of it is random people projecting their cynicism onto the business world, or if it's people who have been part of bribery/kickback schemes themselves trying to normalize the behavior online. Either way, cases like this should make it clear that the behavior…

I know of people who AWS fully sponsored, including business class intercontinental travel, to attend re:Invent which is essentially a week long holiday party, by virtue of AWS bill. Every vendor has marketing budget and a decent portion of it goes to keeping their point people at clients happy. You can call it kick back or whatever, it’s a matter of semantics. So yes it is normal. And no it’s neither cynical and nor…

> I know of people who AWS fully sponsored, including business class intercontinental travel, to attend re:Invent which is essentially a week long holiday party, by virtue of AWS bill.

Flying people to an AWS conference seems entirely different than funneling money into a single person's bank account.

Yes, I know these conferences have a party-like atmosphere, but it's not done surreptitiously and it's not siphoning money out of the deal into someone's pockets.