Former Netflix boss in fraud allegation

The former CIO at Netflix, Mike Kail, has been accused of an alleged fraud while working at the company. Netflix filed a writ in a California court at Santa Clara on November 24th alleging that Mr Kail, when the company’s vice-president of information technology, breached his fiduciary duties, “unjust enrichment”, constructive fraud and other charges.

Kail left Netflix in August, and is currently working at Yahoo where he is CIO, reporting to the company’s CEO Marissa Mayer.

The Netflix action alleges that Kail arraigned certain contracts with two vendors, Vistara and NetEnrich and in return received commissions of between 12-15 per cent on the value of those contracts. Netflix states it paid the two suppliers a total of $3.7 million from 2012 until Kail left the company. Netflix alleges that its former employee might have received kickbacks from other suppliers to the company. Netflix has supplied details of e-mails between Kail and the two companies alleged to have been involved.

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