http://www.nbr.co.nz/article/dotcom-saga-tying-threads-together-ca-120689
The Dotcom saga
Caleb Allison | WEEKEND REVIEW | 12 comments
Kim DotcomIt has been almost six months since internet tycoon Kim Dotcom was arrested following a dawn raid on his rented Coatesville mansion by armed police.
He is accused of money laundering, copyright infringement and racketeering, and the US government wants to force him back to America to face the charges.
The affair is a classic David and Goliath conflict between nations with divergent perceptions of the power of the state over what is legal and what is not.
It is also a test of the independence of the New Zealand judiciary.
The legal process has grown complicated since Mr Dotcom was first arrested in January, and now involves a complex fight over whether the Federal Bureau of Investigation acted illegally in seizing some of Mr Dotcom's data, and then taking it out of the country.
How has the case got to where it is now?
Kim Dotcom and his three co-accused - Finn Batato, Mathias Ortmann and Bram van der Kolk - were arrested on January 20 for their alleged involvement in what the FBI calls a "mega conspiracy" to distribute pirated material, such as music, films and television shows, through Mr Dotcom's Megaupload website.
That website once boasted 4% of the world's internet traffic, and allowed users not only to store their personal data, but to upload and share files such as movies and television shows.
The police raid - brought about by New Zealand and US partnership in the Mutual Assistance in Criminal Matters Act - saw a large amount of property seized, including more than 130 computer items which are now the subject of a High Court judicial review.
Mr Dotcom's legal team from blue-chip firm Simpson Grierson, led by senior litigator Willy Akel, brought in heavy-hitting Queen's counsel Paul Davison to head their in-court defence strategy.
Mr Dotcom was initially denied bail in the North Shore District Court by Judge David McNaughton, who said Mr Dotcom was a flight risk. At one stage of proceedings a clearly flummoxed Judge McNaughton kicked all media out of his court.
Mr Dotcom was held in custody for about a month before electronic bail was granted by Judge Nevin Dawson in late February.
He was bailed to a "mini-mansion" on a property next to the larger $30 million Chrisco mansion on the northern outskirts of Auckland, his former rented primary residence, not far from Paremeremo maximum security prison.
On March 5, the Crown, acting on a request from US authorities, filed papers formally requesting the extradition of Mr Dotcom to America to face charges.
With no access to finances because his accounts were frozen, the High Court's Justice Judith Potter ordered $60,000 a month to be released for Mr Dotcom's living expenses, as well as the use of a luxury 2011 Mercedes Benz G55AMG car.
On April 2, Mr Dotcom was granted the right to use the internet and swim in the pool on the Chrisco property, as well as record music at Neil Finn's Roundhead Studios in central Auckland for a few hours a week.
By the end of April, Mr Dotcom was almost a daily presence in New Zealand media as the John Banks donation scandal emerged.
Mr Dotcom claimed Mr Banks asked him to split his $50,000 donation to his Super City mayoral campaign into two $25,000 chunks so he would not have to declare it.
By mid-May, it had emerged Mr Dotcom's lawyers wanted a judicial review into the search warrant the police used when they raided his property in January.
At the Auckland High Court on May 23, his lawyers argued the warrant was too broad because it only permitted items to be taken that were relevant to the charges brought against Mr Dotcom, but instead police took everything.
The review centred around computer data, and the fact much irrelevant material was scooped up in the seizure, including the device that operates the mansion's lighting system, and a collection of Mr Dotcom's home movies.
The Crown argued it was inevitable that irrelevant material would be caught up in the seizure.
However, the relevance of the judicial review was brought into question when it emerged that the FBI, despite orders from the court, had already taken copies, or clones, of some hard drives and sent them to America.
Paul Davison said the process was "off the rails".
At the end of a two-day hearing Chief High Court judge Helen Winkelmann ordered the Crown back to court to explain how this happened.
In between High Court hearings, District Court Judge David Harvey ruled on May 29 that Mr Dotcom was no longer a flight risk and should have his electronic bail removed.
He was also granted access to the evidence the FBI has against him so he could properly prepare a defence.
This week Justice Winkelmann heard the Crown's response to why the FBI took the data offshore.
Crown lawyer John Pike argued that Mr Dotcom's defence team knew the data had been taken offshore.
However, Mr Dotcom's lawyer, Willy Akel, told the court this was rubbish, and as far as they were concerned both parties had agreed the data would stay in New Zealand.
The defence says the removal of the data from New Zealand went against an order from the solicitor-general to the police commissioner dated February 16, which said police must retain control over the material.
Justice Winkelmann has reserved her decision on whether it was illegal or not until next week.
Mr Akel told NBR ONLINE the defence wants a declaration that it was unlawful for the FBI to take those items offshore.
"We are then seeking an order directing the commissioner of police to notify the relevant US authority of the court's decision, and request the voluntary return of clones taken from New Zealand."
He says they want an independent person to go through the documents that remain in New Zealand, and sort out what is relevant to the case and what is not.
Mr Dotcom is due to face an extradition hearing on August 6.
http://tvnz.co.nz/national-news/kim-dotcom-promises-more-bombshells-in-spy-saga-5103326
Accused copyright pirate Kim Dotcom is promising more bombshells to come in his fight against extradition and illegal Government spying.
His lawyers are concerned one police officer's evidence under oath is "inconsistent".
Today in the High Court, Paul Davison QC, acting for Dotcom, said the information provided by police gave him cause for "grave and significant" concerns.
The High Court is planning to appoint a legal specialist to determine whether the information Government spies gathered illegally on Kim Dotcom can be given to him.
Crown lawyers said some of the information had the potential to damage the nation's security interests and cannot be handed over without an "amicus" or special counsel, assessing it.
However, Dotcom's lawyers want all the information on their client as soon as possible, and have cast doubts on the reliability of the Crown or police to properly disclose it, given this week's revelations about illegal spying.
Davison said being able to view the information will inform the court as to whether the actions taken by police in searching Dotcom's house were reasonable or not. The disclosure needed to be unqualified and complete, not the progressive drip fed information received so far, he said.
"Enough is enough, is enough," Davison said.
Crown lawyer John Pike said some of the information collected by the Government Communications Security Bureau (GCSB) could not be made public, including that which identified sources or channels of information.
He proposed a senior lawyer be appointed as an amicus to go through the information passed on to police and assess whether it had the potential to affect security.
A hearing would then take place in a closed court between the lawyers involved.
Justice Helen Winkelmann said this needed to happen quickly, as the process was taking "an awfully long time". She supported Dotcom's right to complain about illegal action through the court.
'Court will see through this'
Dotcom told reporters when he arrived at court that there was "much I would like to tell you" but he had to "restrain" himself in advance of his extradition hearing.
"I will say this: The New Zealand Government has underestimated the sophistication of New Zealanders, of their media, and especially of their courts."
He said the court system was used to dealing with people lying and deceiving.
"The courts will see through this... It's in the interests of all New Zealanders that we get to the bottom of this," he said.
Today's court action wrapped up just before midday.
Key comes under fire once again
John Key has strongly rejected claims there has been any abuse of power in the Dotcom spy case.
The Prime Minister has faced another day of tough questioning from the media and opposition parties over the saga.
"What I can confirm is that I now understand that unlawful activity took place, in relation to activities and surveillance work in relation to Dotcom and one other person, that wasn't done deliberately," said Key.
Key also rejected suggestions from Dotcom that information gathered by the Government communications security bureau might have been passed on to US authorities.
"My understanding is it was used for the police raid."
Key said the US Government's bid to extradite Kim Dotcom was "a very different and separate matter".
The High Court today released a ministerial certificate signed by deputy leader Bill English authorising suppression of the bureau's involvement.
The certificate details the bureau's concerns that public knowledge of its role in the case could harm its relationship with other countries.
"That tells you that you that the GCSB has a very close relationship with the US government and they don't want to upset the US security agencies," said Green Party co-leader Russell Norman.
The Green Party says an investigation also needs to look into claims that the GCSB's spying on Dotcom started earlier than indicated.
The inquiry is expected to be completed by the end of the week.
'Embarrassing mistake'
Bill Hodge told TV ONE's Breakfast that the Megaupload case has become "a bit of a circus", and that the central issue over whether there is enough evidence to extradite Dotcom on internet piracy charges to the United States should remain the focus.
Hodge, a law professor at the University of Auckland, said Megaupload founder Dotcom has himself been involved in creating "diversionary tactics" throughout the case.
Hodge said it is possible there may be indemnity and Bill of Rights damages as a result of the unlawful bugging, but he says he "doubts it".
"It's embarrassing. I would put this latest issue in the category of mistake rather than a deliberate invasion of human rights," he said.
However, Dotcom's legal team has not ruled out pursuing legal action against the Government over the illegal security breaches.
United States-based defence attorney Ira Rothken has flown into New Zealand to join Dotcom's Kiwi lawyers in their fight to stop Dotcom from being extradited to the United States, saying that the "huge blunder" made by the Government's spy agency could work in their favour.
The Megaupload founder also tweeted: "I prefer not to sue the NZ Government. We love it here & we don't want to burden tax payers. But it's time for diplomacy. This is all wrong. "Dotcom trumpets free fibre
SIMON DAY
Share
Dotcom yesterday tweeted: "I will relaunch Pacific Fibre. Free broadband for all Kiwi's [sic]."Controversial internet tycoon Kim Dotcom is promising free broadband for all New Zealanders, possibly alongside Trade Me founder Sam Morgan.
Pacific Fibre was the company part-launched by Morgan in 2010 to build an ambitious 13,000 kilometre high-speed fibre-optic cable connecting New Zealand and Australia to California.
It was to have been the second such cable and would have brought competition to the market, pushing down broadband prices. But the company ceased operations in August after failing to find the required $400 million of funding.
Morgan, who was chairman of Pacific Fibre, said: "I haven't talked to him [Dotcom] but I would be happy to have a chat. I'm keen to see it happen. It is an extremely important piece of infrastructure. What we really need is a cornerstone investor with a couple of hundred million dollars."
Dotcom recently announced the relaunch his megaupload digital storage site - shut down in January by US authorities, who then persuaded New Zealand police to launch an armed raid on his mansion north of Auckland.
The Telecommunications Users Association of New Zealand believes Dotcom could be the money man Morgan needs to revive Pacific Fibre.
"This is exactly the sort of thing we need. Someone who is high profile internationally to get it going," said CEO Paul Brislen.
The increased broadband capacity would attract large international digital companies and give New Zealand businesses greater access to international markets.
"New Zealand needs this to help move from a primary industry economy to a digital based economy," Brislen said.
The Dotcom saga
Caleb Allison | WEEKEND REVIEW | 12 comments
Kim Dotcom
He is accused of money laundering, copyright infringement and racketeering, and the US government wants to force him back to America to face the charges.
The affair is a classic David and Goliath conflict between nations with divergent perceptions of the power of the state over what is legal and what is not.
It is also a test of the independence of the New Zealand judiciary.
The legal process has grown complicated since Mr Dotcom was first arrested in January, and now involves a complex fight over whether the Federal Bureau of Investigation acted illegally in seizing some of Mr Dotcom's data, and then taking it out of the country.
How has the case got to where it is now?
Kim Dotcom and his three co-accused - Finn Batato, Mathias Ortmann and Bram van der Kolk - were arrested on January 20 for their alleged involvement in what the FBI calls a "mega conspiracy" to distribute pirated material, such as music, films and television shows, through Mr Dotcom's Megaupload website.
That website once boasted 4% of the world's internet traffic, and allowed users not only to store their personal data, but to upload and share files such as movies and television shows.
The police raid - brought about by New Zealand and US partnership in the Mutual Assistance in Criminal Matters Act - saw a large amount of property seized, including more than 130 computer items which are now the subject of a High Court judicial review.
Mr Dotcom's legal team from blue-chip firm Simpson Grierson, led by senior litigator Willy Akel, brought in heavy-hitting Queen's counsel Paul Davison to head their in-court defence strategy.
Mr Dotcom was initially denied bail in the North Shore District Court by Judge David McNaughton, who said Mr Dotcom was a flight risk. At one stage of proceedings a clearly flummoxed Judge McNaughton kicked all media out of his court.
Mr Dotcom was held in custody for about a month before electronic bail was granted by Judge Nevin Dawson in late February.
He was bailed to a "mini-mansion" on a property next to the larger $30 million Chrisco mansion on the northern outskirts of Auckland, his former rented primary residence, not far from Paremeremo maximum security prison.
On March 5, the Crown, acting on a request from US authorities, filed papers formally requesting the extradition of Mr Dotcom to America to face charges.
With no access to finances because his accounts were frozen, the High Court's Justice Judith Potter ordered $60,000 a month to be released for Mr Dotcom's living expenses, as well as the use of a luxury 2011 Mercedes Benz G55AMG car.
On April 2, Mr Dotcom was granted the right to use the internet and swim in the pool on the Chrisco property, as well as record music at Neil Finn's Roundhead Studios in central Auckland for a few hours a week.
By the end of April, Mr Dotcom was almost a daily presence in New Zealand media as the John Banks donation scandal emerged.
Mr Dotcom claimed Mr Banks asked him to split his $50,000 donation to his Super City mayoral campaign into two $25,000 chunks so he would not have to declare it.
By mid-May, it had emerged Mr Dotcom's lawyers wanted a judicial review into the search warrant the police used when they raided his property in January.
At the Auckland High Court on May 23, his lawyers argued the warrant was too broad because it only permitted items to be taken that were relevant to the charges brought against Mr Dotcom, but instead police took everything.
The review centred around computer data, and the fact much irrelevant material was scooped up in the seizure, including the device that operates the mansion's lighting system, and a collection of Mr Dotcom's home movies.
The Crown argued it was inevitable that irrelevant material would be caught up in the seizure.
However, the relevance of the judicial review was brought into question when it emerged that the FBI, despite orders from the court, had already taken copies, or clones, of some hard drives and sent them to America.
Paul Davison said the process was "off the rails".
At the end of a two-day hearing Chief High Court judge Helen Winkelmann ordered the Crown back to court to explain how this happened.
In between High Court hearings, District Court Judge David Harvey ruled on May 29 that Mr Dotcom was no longer a flight risk and should have his electronic bail removed.
He was also granted access to the evidence the FBI has against him so he could properly prepare a defence.
This week Justice Winkelmann heard the Crown's response to why the FBI took the data offshore.
Crown lawyer John Pike argued that Mr Dotcom's defence team knew the data had been taken offshore.
However, Mr Dotcom's lawyer, Willy Akel, told the court this was rubbish, and as far as they were concerned both parties had agreed the data would stay in New Zealand.
The defence says the removal of the data from New Zealand went against an order from the solicitor-general to the police commissioner dated February 16, which said police must retain control over the material.
Justice Winkelmann has reserved her decision on whether it was illegal or not until next week.
Mr Akel told NBR ONLINE the defence wants a declaration that it was unlawful for the FBI to take those items offshore.
"We are then seeking an order directing the commissioner of police to notify the relevant US authority of the court's decision, and request the voluntary return of clones taken from New Zealand."
He says they want an independent person to go through the documents that remain in New Zealand, and sort out what is relevant to the case and what is not.
Mr Dotcom is due to face an extradition hearing on August 6.
http://tvnz.co.nz/national-news/kim-dotcom-promises-more-bombshells-in-spy-saga-5103326
Accused copyright pirate Kim Dotcom is promising more bombshells to come in his fight against extradition and illegal Government spying.
His lawyers are concerned one police officer's evidence under oath is "inconsistent".
Today in the High Court, Paul Davison QC, acting for Dotcom, said the information provided by police gave him cause for "grave and significant" concerns.
Story continues below...
- Related
The High Court is planning to appoint a legal specialist to determine whether the information Government spies gathered illegally on Kim Dotcom can be given to him.
Crown lawyers said some of the information had the potential to damage the nation's security interests and cannot be handed over without an "amicus" or special counsel, assessing it.
However, Dotcom's lawyers want all the information on their client as soon as possible, and have cast doubts on the reliability of the Crown or police to properly disclose it, given this week's revelations about illegal spying.
Davison said being able to view the information will inform the court as to whether the actions taken by police in searching Dotcom's house were reasonable or not. The disclosure needed to be unqualified and complete, not the progressive drip fed information received so far, he said.
"Enough is enough, is enough," Davison said.
Crown lawyer John Pike said some of the information collected by the Government Communications Security Bureau (GCSB) could not be made public, including that which identified sources or channels of information.
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A hearing would then take place in a closed court between the lawyers involved.
Justice Helen Winkelmann said this needed to happen quickly, as the process was taking "an awfully long time". She supported Dotcom's right to complain about illegal action through the court.
'Court will see through this'
Dotcom told reporters when he arrived at court that there was "much I would like to tell you" but he had to "restrain" himself in advance of his extradition hearing.
"I will say this: The New Zealand Government has underestimated the sophistication of New Zealanders, of their media, and especially of their courts."
He said the court system was used to dealing with people lying and deceiving.
"The courts will see through this... It's in the interests of all New Zealanders that we get to the bottom of this," he said.
Today's court action wrapped up just before midday.
Key comes under fire once again
John Key has strongly rejected claims there has been any abuse of power in the Dotcom spy case.
The Prime Minister has faced another day of tough questioning from the media and opposition parties over the saga.
"What I can confirm is that I now understand that unlawful activity took place, in relation to activities and surveillance work in relation to Dotcom and one other person, that wasn't done deliberately," said Key.
Key also rejected suggestions from Dotcom that information gathered by the Government communications security bureau might have been passed on to US authorities.
"My understanding is it was used for the police raid."
Key said the US Government's bid to extradite Kim Dotcom was "a very different and separate matter".
The High Court today released a ministerial certificate signed by deputy leader Bill English authorising suppression of the bureau's involvement.
The certificate details the bureau's concerns that public knowledge of its role in the case could harm its relationship with other countries.
"That tells you that you that the GCSB has a very close relationship with the US government and they don't want to upset the US security agencies," said Green Party co-leader Russell Norman.
The Green Party says an investigation also needs to look into claims that the GCSB's spying on Dotcom started earlier than indicated.
The inquiry is expected to be completed by the end of the week.
'Embarrassing mistake'
Bill Hodge told TV ONE's Breakfast that the Megaupload case has become "a bit of a circus", and that the central issue over whether there is enough evidence to extradite Dotcom on internet piracy charges to the United States should remain the focus.
Hodge, a law professor at the University of Auckland, said Megaupload founder Dotcom has himself been involved in creating "diversionary tactics" throughout the case.
Hodge said it is possible there may be indemnity and Bill of Rights damages as a result of the unlawful bugging, but he says he "doubts it".
"It's embarrassing. I would put this latest issue in the category of mistake rather than a deliberate invasion of human rights," he said.
However, Dotcom's legal team has not ruled out pursuing legal action against the Government over the illegal security breaches.
United States-based defence attorney Ira Rothken has flown into New Zealand to join Dotcom's Kiwi lawyers in their fight to stop Dotcom from being extradited to the United States, saying that the "huge blunder" made by the Government's spy agency could work in their favour.
The Megaupload founder also tweeted: "I prefer not to sue the NZ Government. We love it here & we don't want to burden tax payers. But it's time for diplomacy. This is all wrong. "Dotcom trumpets free fibre
Dotcom trumpets free fibre
SIMON DAY
Last updated 09:19 04/11/2012
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Reuters
MULTIMILLIONAIRE: Kim Dotcom proposes better internet deal for all New Zealanders.
Digital living
Dotcom yesterday tweeted: "I will relaunch Pacific Fibre. Free broadband for all Kiwi's [sic]."Controversial internet tycoon Kim Dotcom is promising free broadband for all New Zealanders, possibly alongside Trade Me founder Sam Morgan.
Pacific Fibre was the company part-launched by Morgan in 2010 to build an ambitious 13,000 kilometre high-speed fibre-optic cable connecting New Zealand and Australia to California.
It was to have been the second such cable and would have brought competition to the market, pushing down broadband prices. But the company ceased operations in August after failing to find the required $400 million of funding.
Morgan, who was chairman of Pacific Fibre, said: "I haven't talked to him [Dotcom] but I would be happy to have a chat. I'm keen to see it happen. It is an extremely important piece of infrastructure. What we really need is a cornerstone investor with a couple of hundred million dollars."
Dotcom recently announced the relaunch his megaupload digital storage site - shut down in January by US authorities, who then persuaded New Zealand police to launch an armed raid on his mansion north of Auckland.
The Telecommunications Users Association of New Zealand believes Dotcom could be the money man Morgan needs to revive Pacific Fibre.
"This is exactly the sort of thing we need. Someone who is high profile internationally to get it going," said CEO Paul Brislen.
The increased broadband capacity would attract large international digital companies and give New Zealand businesses greater access to international markets.
"New Zealand needs this to help move from a primary industry economy to a digital based economy," Brislen said.
but here it is. 
