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

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

#131
post #109

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.

Netflix is a publicly traded company. They have a fiduciary responsibility to the shareholder to increase shareholder value by always selecting the best interest of the shareholders. It is way beyond a corporate policy. It is stealing shareholder value.

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

#132

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…

Mad Men is a fictional TV show set in the 1950s. "Big Pharma" sending doctors to resorts is now illegal in the US under the Sunshine Act.

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

#134
post #109

Earlier quoted context omitted.

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.

> “Bribery and kickbacks are pernicious crimes that stifle Silicon Valley’s culture of competitive innovation,” said Acting United States Attorney Stephanie M. Hinds. “Michael 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. Such crimes come with a cost, as reflected by the prison sentence that Kail will now serve.”

So the person took bribes and hurt other tech vendors and the corporation. Sure. But suppose you hurt the organization and partners by being incompetent at your work. Or having bad judgement, or being lazy, or a million other things. Would it be okay to send those people to prison?

"Pay-to-Play" isn't illegal. I don't even know what it is. Coke pays to have their beverage in AMC theaters. Is that pay to play? Is Pepsi more worthy of that slot? "Money Laundering" is incredibly broad and can be applied to a lot of things.

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

#136
post #84

Earlier quoted context omitted.

> 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. Or people who actually know about those things, having worked in/with/studied the various industries, without having "been part of bribery/kickback schemes themselves", and have seen them to be fairly wide…

I will state this isn’t normal for large enterprises, at least at that scale. Most software vendors are happy to invite buyers to Warriors games, which is a lot cheaper than the 0.25% dilution. I’ve even seen folks recuse themselves from recommending prior employers because they still had shares. I think the problem lands somewhere between “widespread corruption” and “never.” Salespeople can hit their quotas without…

>I will state this isn’t normal for large enterprises, at least at that scale. Most software vendors are happy to invite buyers to Warriors games, which is a lot cheaper than the 0.25% dilution.

Salesforce or GitHub selling seats to some random company sure don't.

Large software vendors like Microsoft, Siemens (their software dept), IBM, and more, have routinely bribed all around the world to win government contracts.

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

#138

Earlier quoted context omitted.

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.…

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

#139
post #63

Earlier quoted context omitted.

I had to look that up because I’m not familiar with the story, but it seems illegal in most other states. This Netflix case, by contrast, is federal. Still makes the Gov. actions seem sketchy

Florida politics is sketchy be definition as they are an outgrowth of representing 'Florida Man'

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

#140

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 don't think the argument "I've seen it happen around me" means that it is necessarily routine or common throughout society. If I'm a basketball player and most of the people around me can dunk a basketball, while it may be common in my circle, it certainly is not common throughout the American or global population.
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