Megaupload case begins: Kim Dotcom requests bail, police raid detailed

[beer]

The beginning of the cases against Megaupload is upon us, with a bail hearing in New Zealand. In it, Megaupload founder Kim Dotcom's lawyer requested bail, arguing that he was not a flight risk and said he was innocent: "Mr Dotcom emphatically denies any criminal misconduct or wrongdoing, and denies the existence of a Mega Conspiracy."

During the trial, the defense and state also engaged in a back and forth over the circumstances of Dotcom's arrest after a police raid on his mansion. Apparently as police arrived, Dotcom triggered several electronic locks and retreated to a "safe room," requiring police to cut through gates to get to him. When Dotcom was found, he was near a gun, though he did not use it. Dotcom's defense argues that he was cooperative, adding that they believed the raid was "intended to have the most dramatic effect." The defense also claimed that a police officer scoped out Dotcom's surreptitiously the day before by visiting the home with a camera hidden inside a pen, which Davision called "utter nonsense."

The gun supposedly was loaded with a rubber bullet instead of live ammunition, but the state noted that neither Dotcom nor his security guard had a license for it. Despite Dotcom's explanations, the fact that he locked down his mansion and retreated to a "panic room" next to any sort of gun doesn't look good. No decision has been made about Dotcom's bail or later possible extradition to the US yet, but the prosecution has said he is a "flight risk at the extreme end of the scale" given his previous history and large financial resources.

Dotcom's defense made it clear that it would not back down on any point, "This is not a case where there will be any concession by Mr Dotcom," said Mr Davison. Given the amount of attention on the case and how strongly the FBI has pursued it, we expect that feeling is mutual.

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[DKT27]

Judge Delays Megaupload Bail Decision, More Site Operators Arrested

In a New Zealand court today, a judge delayed the decision to grant or deny bail to Kim Dotcom, the larger than life founder of Megaupload.com. The prosecutor said that since multi-millionaire Dotcom had multiple identities, four dozen credit cards and a history of “fleeing criminal charges” he represented a flight risk “on the extreme end of the scale”. In the meantime, two other site operators were arrested in Europe.

Last Friday, the founder of MegaUpload, Kim Dotcom, was denied bail in an extradition hearing in New Zealand.

Dotcom, who was raided by 76 armed police in helicopters the day before, is wanted in the United States alongside other key MegaUpload employees on racketeering, copyright infringement and money laundering charges.

Today, he reappeared in court again. Dotcom denied charges of copyright infringement and money laundering and said that he was the victim of a campaign to paint him in the worst possible light.

Dotcom’s lawyer, Paul Davison, told the hearing at the North Shore District Court in Auckland that his client merely ran a site offering online storage for Internet users and had not been involved in any criminal activity. Dotcom’s height and significant frame would only reduce the chances his client would abscond from bail, Davison insisted.

“He is not the sort of person who will pass unnoticed through our customs and immigration lines and controls,” Davison told the court.

The prosecution, pointing to nearly four dozen credit cards found when Dotcom was arrested, said that Dotcom’s significant financial resources meant that fleeing was a real possibility. But despite Davison’s assurances that Dotcom is merely a collector of credit cards, most of which had expired, Prosecutor Anne Toohey persisted.

Dotcom’s resources, multiple identities, multiple passports, and past history of fleeing criminal charges placed him as a flight risk “at the extreme end of the scale,” she said.

Judge David McNaughton said that due to the complex nature of the case he would delay his decision.

On the other side of the world, two other Megaupload operatives have been arrested in Europe. Although currently unnamed, they are believed to be Julius Bencko, 35, Mega’s graphics designer from Slovakia and Andrus Nomm, 32, programmer and head of the development from Estonia.

In the meantime, an immigration scandal is forming around Dotcom’s New Zealand residency. This week authorities there confirmed that it had taken Dotcom’s colorful past into consideration before giving him permanent residency in 2010 – but only after he’d invested NZ$10 million in government bonds.

“The Immigration Act allows for discretion to be exercised in certain cases. In this particular case Immigration NZ weighed the character issue and any associated risk to New Zealand against potential benefits to New Zealand,” the Immigration Service said in a statement at the weekend. Residency was eventually granted to Dotcom under the “investor plus” category.

Judge David McNaughton will deliver his decision on bail no later than Wednesday.

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[beer]

Thanks for the update