Accused Internet Pirate Arrested



Kim Dotcom

(Wellington, New Zealand) The 38-year-old founder of file-sharing site Megaupload.com, Kim Dotcom (aka Kim Schmitz), was arrested Friday by New Zealand police for alleged Internet piracy.

German national Dotcom and three accomplices were arrested after an FBI investigation. They face charges of copyright infringement as well as conspiracy to commit copyright infringement, conspiracy to commit money laundering and conspiracy to commit racketeering.

The group was accused of engaging in a scheme that took more than $500 million away from copyright holders and generated over $175 million in proceeds from subscriptions and advertising.

A police official said dozens of officers, backed by helicopters, forced their way into the mansion, nestled in lush, rolling farmland, after Dotcom refused them entry, a scene more reminiscent of a high-octane spy drama than the usual policeman's lot in rural New Zealand.

"Despite our staff clearly identifying themselves, Mr Dotcom retreated into the house and activated a number of electronic-locking mechanisms," said Detective Inspector Grant Wormald from the Organised and Financial Crime Agency New Zealand.

Officers broke the locks and Dotcom barricaded himself into a safe room which officers had to cut their way through to gain access.

"Once they gained entry into this room, they found Mr Dotcom near a firearm which had the appearance of a shortened shotgun," he said. "It was definitely not as simple as knocking at the front door."

The alleged perpetrators face extradition and trial in the U.S.

According to another source, Dotcom's lifestyle was lavish. Once he had filled a swimming pool with imported spring water.

And a documentary uploaded online shows Schmitz, surrounded by topless women, spraying champagne on board a superyacht during a "crazy weekend" in Monaco that reportedly cost US$10 million.

"Fast cars, hot girls, superyachts and amazing parties. Decadence rules," said the blurb accompanying the documentary, which Schmitz dedicated to "all my fans."

The FBI estimated that in 2010 Schmitz personally made around $115,000 (€89,000) a day from his Megaupload empire.

Also, the guy is a load at 6-foot, 7 inches and 300 pounds.

Companion post at The Jawa Report.