Internet ban for Dotcom as court frees the pirate from jail on bail
Gyles Beckford US CRIME-FIGHTERS failed in a bid to keep alleged internet pirate Kim Dotcom behind bars yesterday when a New Zealand court freed him from jail and instead put him under effective house arrest and banned him from using the internet.
The court, in upholding a bail application by the German founder of file-sharing website Megaupload, cast some doubt on the multimillionaire’s purported flight risk pending an extradition hearing scheduled for August.
“I’m relieved to go home and see my three little kids and my pregnant wife,” a smiling Dotcom, 38, said as he was hustled towards a car by supporters and lawyers.
Wearing his usual black Tshirt, trouser and jacket, he vowed to fight the eventual extradition hearing on charges of copyright piracy, racketeering and money laundering.
Dotcom, who has New Zealand residency and is also known as Kim Schmitz and Kim Tim Jim Vestor, had been in custody since his arrest in a military-style raid on January 20 on his mansion outside Auckland by local police acting on a US warrant.
“I’m relieved to go home and see my three little kids and my pregnant wife,” Dotcom said.
Under the bail conditions, Dotcom, who kept a private helicopter as part of his lavish lifestyle, must live in a small house near the mansion he had rented and wear an electronic tag. He will be restricted in his travel and the judge has banned helicopters from the property.
Prosecutors say Dotcom was the ringleader of a group that netted $175 million (R1.3 billion) since 2005 by copying and distributing music, movies and other copyrighted content without authorisation through Megaupload.com and related websites, among the world’s busiest before they were shut down last month.
Dotcom’s lawyers say the company simply offered online storage and that he strenuously denies the US charges.
Dotcom obtained bail on his second attempt, after the judge said that a review of the facts and Dotcom’s circumstances showed that he was less of a risk of fleeing than before.
This month, the high court had upheld a lower court judge’s ruling that there was a major risk Dotcom, who had passports and bank accounts in three names, might try to flee the country.
But Judge Nevin Dawson yesterday reasoned that bail could be awarded, given that there was no new evidence that Dotcom had undisclosed funds he could use to aid in a flight from justice.
He said that prosecutors had been unable to find any new funds or assets that had not already been seized, and prosecution claims that he was a wealthy man were not sufficient reason to hold him.
Dotcom’s three co-accused were also bailed until late August for the hearing of US extradition request.
A US Justice Department spokeswoman declined immediate comment on the New Zealand bail ruling.
Judge David Mcnaughton, who presided in previous hearings, set August 20 as the earliest date he could hear the extradition case, which he has scheduled to last three weeks.
Prosecutors said that the formal extradition application had not yet been received but was expected by early March.
Last week, a US grand jury added more charges against Megaupload and its executives, alleging they took copyrighted material from sites such as Youtube for its own service.
Dotcom and his co-accused were arrested after about 70 armed New Zealand police raided his country estate at the request of the US Federal Bureau of Investigation.
Legal experts have said extradition hearings were likely to be drawn out with appeals likely all the way to the country’s highest court. – Reuters