The founding father of Megaupload, the file-sharing internet web site, was ordered held in custody by a replacement Zealand court Monday, when he denied charges of net piracy and cash laundering and said the authorities were attempting to portray the worst image of him.
A prosecutor, Anne Toohey, argued at a bail hearing that Kim Dotcom, a twin German-Finnish citizen conjointly referred to as Kim Schmitz, was a flight risk “at the acute finish of the scale” as a result of it absolutely was believed he had access to cash, had multiple identities and had a history of fleeing criminal charges.
“The F.B.I. believes the sums located are unlikely to represent all the overseas bank accounts owned by Mr. Dotcom,” she said.
But Mr. Dotcom’s lawyer said he posed no threat of absconding or restarting his businesses, arguing that his consumer had cooperated absolutely, his passports had been seized and his cash frozen, and conjointly that he had a particular look.
“He isn’t the kind of one that can pass unnoticed through our customs and immigration lines and controls,” the defense lawyer, Paul Davison, said of Mr. Dotcom, who is reportedly two meters, or half-dozen feet half-dozen inches, tall and weighs quite a hundred thirty kilograms, or 285 pounds.
Judge David McNaughton said the bail application was too difficult for an on the spot ruling, adding he would issue a written call no later than Wednesday. “Given the breadth of problems lined during this bail application and therefore the seriousness of the problems, i’m about to reserve my call,” the choose said.
The U.S. authorities wish Mr. Dotcom extradited, accusing him of masterminding a theme that created quite $175 million in a very few years by copying and distributing music, movies and alternative copyrighted content while not authorization. Megaupload’s lawyer has said the corporate merely offered on-line storage.
Ms. Toohey, the New Zealand prosecutor, said 2 alternative men sought on international warrants for involvement in Megaupload had been arrested in Europe.
Mr. Davison, Mr. Dotcom’s defense lawyer, said in court that Megaupload’s business was being misrepresented which the authorities were being aggressive to feature drama to the case.
“His business failed to reproduce or copy material as alleged,” he told the court, adding that copyright holders had been given access to Megaupload to spot improper posting of fabric. He likened {the web site|the location|the positioning} to the favored video site YouTube, where folks “promoted their creativity.”
The shock waves of the case perceived to be spreading among internet sites that provide file sharing. FileSonic, that provides on-line information storage, said in a very statement on its web site that it had halted its file-sharing services.
“All sharing functionality of FileSonic is currently disabled,” it said. “Our service will solely be used to upload and retrieve files that you simply have uploaded personally.”
Mr. Dotcom, 38, and 3 others, were arrested Friday when the New Zealand police raided his country estate close to Auckland at the request of the U.S. Federal Bureau of Investigation. The police cut their means into a secure space where Mr. Dotcom had barricaded himself. He had retreated there as a result of, in step with Mr. Davison, his lawyer, he was frightened and panicked.
Presenting the case for flight risk, the prosecutor said that forty five credit cards in 3 wallets had been found within the mansion underneath Mr. Dotcom’s varied names which 3 passports had conjointly been found. Mr. Davison said of the credit cards: “My consumer collects them. Most of them are out of date.”
Mr. Dotcom smiled and waved at regarding twenty supporters who stuffed the courtroom and spoke to them when the judge’s call.
“Hey, guys, thanks for turning up, I appreciate it,” he said, wishing a feminine supporter a cheerful birthday.
Mr. Davison said Mr. Dotcom was “realistic regarding what’s happening.”
“He would clearly like better to be at giant,” the defense lawyer said outside court. “He doesn’t wish to be there to any extent further than he fully must be.”
The F.B.I. estimates that Mr. Dotcom personally created $115,000 every day throughout 2010 from his network of internet sites.
The list of property to be seized includes nearly twenty luxury cars, works of art, and ten million New Zealand greenbacks, or $8 million, invested in native finance corporations.