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CRIME

Megaupload founder had ‘lavish’ lifestyle

Megaupload.com's German detained founder Monday denied wrongdoing after US authorities shut down his file-sharing website, as new details emerged of a rock-star life featuring "fast cars" and "hot girls."

Megaupload founder had 'lavish' lifestyle
Photo: DPA

Appearing in a New Zealand court, Kim “Dotcom” Schmitz demanded to be freed from police custody and denied doing anything illegal, rejecting US claims that he had overseen one of the internet’s biggest and most lucrative piracy rackets.

The judge reserved a decision until at least Tuesday on a bail application filed by the German businessman who faces extradition to the United States to answer charges of rampant copyright theft.

He is among seven people indicted by the US Justice Department and FBI, which said they were “responsible for massive worldwide online piracy of numerous types of copyrighted works, through Megaupload.com” and other sites.

They generated more than $175 (€135.2 million) in criminal proceeds and caused more than $500 (€386.4 million) in harm to copyright owners by offering pirated copies of movies, TV programmes and other content, according to Thursday’s indictment.

Schmitz has vigorously denied the allegations, and his lawyer Paul Davison told the bail hearing that the 37-year-old German, who has New Zealand and Hong Kong residency, had not been involved in any criminal activity.

“This is not a case where there will be any concession by Mr. Dotcom,” Davison told the North Shore District Court in Auckland.

The lawyer said Schmitz had no intention of fleeing if granted bail as he wanted to stay in New Zealand with his pregnant wife and family, and had no incentive to re-start the business as all his servers had been shut down.

However, prosecutor Anne Toohey described the imposing Schmitz as an “extreme” flight risk and said that he had fled to Thailand when he was previously wanted on charges in Germany.

She also opposed electronic bail as it would likely give Schmitz access to telephones and the internet.

Toohey told the court that more than 30 credit cards in a variety of names were found in Schmitz’s mansion and he also had passports in three different names.

The Megaupload founder was arrested during a raid Friday on his “Dotcom Mansion” in Auckland. Police said they seized a 1959 pink Cadillac among other vintage cars, along with a sawn-off shotgun and valuable artworks.

The New Zealand Herald detailed new claims about Schmitz’s lavish lifestyle including how 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.

Megaupload Ltd and another company, Vestor Ltd, were indicted by a US grand jury and charged with racketeering conspiracy, copyright infringement and conspiring to commit money laundering.

Vestor’s sole shareholder is Kim Schmitz. His six fellow accused come from Estonia, Germany, the Netherlands and Slovakia.

Schmitz and three associates arrested with him in Auckland do not face charges in New Zealand and following the bail hearing, US authorities have 45 days to file extradition documents. The other three indicted people remain at large.

The Local/AFP

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BUSINESS

Elon Musk visits Tesla’s sabotage-hit German factory

Elon Musk travelled Wednesday to Tesla's factory near Berlin to lend his workers "support" after the plant was forced to halt production by a suspected arson attack on nearby power lines.

Elon Musk visits Tesla's sabotage-hit German factory

The Tesla CEO addressed thousands of employees on arrival at the site, accusing “eco-terrorists” of the sabotage as he defended his company’s green credentials.

With his son X AE A-XII in his arms, Musk said: “I am here to support you.”

The billionaire’s visit came a week after power lines supplying the electric carmaker’s only European plant were set on fire in an act of sabotage claimed by a far-left group called the Vulkangruppe (Volcano Group).

READ ALSO: Far-left group claims ‘sabotage’ on Tesla’s German factory

Musk had said then that the attack was “extremely dumb”, while the company said it would cost it several hundred million euros.

A week on, the lights have come back on at the site, but Andre Thierig, who heads the site, said on LinkedIn that it would “take a bit of time” before production is back to full speed.

Industry experts have warned that the reputational impact caused by the sabotage on the region could be more severe than the losses suffered by Tesla.

Tesla’s German plant started production in 2022 following an arduous two-year approval and construction process dogged by administrative and legal obstacles.

Tesla wants to expand the site by 170 hectares and boost production up to one million vehicles annually to feed Europe’s growing demand for electric cars and take on rivals who are shifting away from combustion engine vehicles.

But the plans have annoyed local residents, who voted against the project in a non-binding ballot last month.

After the vote, Tesla said it might have to rethink the plans. Environmental activists opposed to the expansion of the factory have recently also set up a camp in a wooded area near the plant.

READ ALSO: Why is Tesla’s expansion near Berlin so controversial?

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