| Kim Dotcom | |
|---|---|
Kim Dotcom in 1996 |
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| Born | Kim Schmitz January 21, 1974 Kiel, Germany |
| Residence | New Zealand; Hong Kong |
| Nationality | German |
| Other names | Kimble, Kim Tim Jim Vestor |
| Citizenship | Germany, Finland |
| Education | secondary modern school / junior high school[1] |
| Occupation | CIO CEO (2005–2011) |
| Years active | 2005–2012 |
| Organization | Megaupload Ltd. |
| Known for | Founder of Megaupload.com and sister websites |
| Home town | Kiel, Germany |
| Height | 6 feet 6 inches (1.98 m) |
| Weight | 285 pounds (129 kg)[2] |
| Criminal charge | Computer fraud; insider trading; embezzlement; possession of stolen goods; abuse of titles |
| Criminal penalty | Multiple suspended detentions |
| Criminal status | Convicted, probation served |
| Spouse | Mona |
| Children | 5[3][4][5] |
Kim Dotcom, born Kim Schmitz[6] on January 21, 1974,[7] also known as Kimble[8] and Kim Tim Jim Vestor,[9] is a German-Finnish[10] businessman who rose to prominence during the dot-com bubble and was convicted of insider trading and embezzlement in its aftermath.[11] He is also known as the founder of Megaupload and its associated websites.[11][12][13] He legally changed his surname to Dotcom circa 2005.[14] On January 20, 2012, the New Zealand Police placed him in custody under the charges of criminal copyright infringement in relation to his Megaupload Web site.
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As a teenager, Dotcom became known in his native Germany for claims to have cracked corporate PBX systems in the United States, and tried to parlay it into a career in data security.[15] That effort led to his arrest on charges of using and selling stolen calling card numbers.[16][17] In 1994, Dotcom founded a computer security company called DataProtect.[18] In 1999, DataProtect and IVM engineering presented the "Megacar", a Brabus-tuned Mercedes-Benz S-Class W220 which, among other features, had a Windows NT server, a 17.3" SGI flat panel display and combined 16 GSM modules to provide mobile broadband Internet access.[19]
In 1998, Dotcom was convicted of computer fraud and handling stolen goods, and sentenced to two years of prison on probation.[20] According to a report by News & Record, he had traded stolen calling card numbers he bought from hackers in the United States.[21] He achieved early notoriety by being the subject of an advanced-for-its-time flash animation video called Kimble Special Agent.[22] The name is a reference to Richard Kimble, the main character of the television series The Fugitive.[23]
Dotcom later sold 80% of the shares of DataProtect to TÜV Rheinland in 2000, during the dot-com bubble. The former went bankrupt at the time of the subsequent market crash in 2001.[24][25]
He is known for his large frame, as he is 2 metres (6.6 ft) tall and weighs more than 130 kilograms (290 lb).[26]
In 2001, Dotcom purchased €375,000 worth of shares of the nearly bankrupt company LetsBuyIt.com and subsequently announced his intention to invest €50 million in the company.[27] Unknown to others, Dotcom did not have the funds available to invest, although the announcement caused the share value of LetsBuyIt.com to jump by nearly 300%.[28] Dotcom sold his shares a few days later for €1.568 million.[27]
Dotcom had also arranged and obtained an unsecured loan of €280,000 from Monkey AG, a company for which Dotcom had served as Chairman of the Board. The funds were to be paid to Kimvestor AG. As a result, both Monkey and Kimvestor went bankrupt. Dotcom expressed remorse, stating that he had been "dazzled" and had not recognized that he would be unable to repay the loans.[29]
In January 2002, Dotcom was arrested in Bangkok, Thailand, deported to Germany, and subsequently sentenced to a probationary sentence of one year and eight months, and a €100,000 fine, the largest insider-trading case in Germany at the time.[30] Dotcom also pleaded guilty to embezzlement in November 2003 and received a two-year probation sentence.[31]
On March 21, 2005, Dotcom founded Megaupload Limited, a Hong Kong-based file hosting and sharing business that eventually became the 13th most popular site on the internet[32] with over 150 employees, US$175 million revenues,[33] 50 million visitors daily,[32] and estimated to be responsible at its peak for 4% of all internet traffic.[32][34]
The Megaupload business' domain names were seized and the sites shut down by the U.S. Justice Department on January 19, 2012, following their indictment and arrests of the owners for allegedly operating as an organization dedicated to copyright infringement.[35]
He was sued for copyright infringement as owner of Megaupload.[36] A settlement was later filed.[37]
In December 2011, Dotcom's Megaworld (owner of Megaupload, Megavideo, Megalive and more) released its "Megaupload Song" promotional music video, which featured Kanye West, will.i.am, Jamie Foxx, Sean "Diddy" Combs, Alicia Keys, Chris Brown and more lauding the service. Universal Music Group (UMG) responded by using the DMCA takedown process to have the clip removed from YouTube and other sites. Dotcom accused UMG of sending "illegitimate takedown notices", since UMG did not own the song in question, and Megaupload went on to file a lawsuit against UMG.[13][38][39] A statement released by UMG claimed that a special arrangement exists between UMG and YouTube which allows UMG to take down any videos featuring their artists, regardless of copyright status.[40] This claim was later explicitly denied by YouTube,[41] which has since reinstated the video.[42]
On January 5, 2012,[43] indictments were filed in the United States against Dotcom on criminal copyright infringement charges along with Július Benčko and 5 other associates. On January 20, 2012, Kim Dotcom, Finn Batato, Mathias Ortmann and Bram van der Kolk were arrested in Coatesville, Auckland, New Zealand, by New Zealand Police, following an armed raid on Dotcom's house. New Zealand authorities were cooperating with the United States' FBI and Justice Department, Hong Kong Customs and the Hong Kong Department of Justice, the Netherlands Police Agency and the Public Prosecutor's Office for Serious Fraud and Environmental Crime in Rotterdam, London's Metropolitan Police Service, Germany’s Bundeskriminalamt and the German Public Prosecutors, the Royal Canadian Mounted Police and the Canadian Department of Justice in the investigation preceding the arrests.[44][45]
According to Dotcom's defense, the police operation against Megaupload was unnecessarily grandiose: "... armed officers arrived in helicopters and dropped into the Dotcom mansion courtyard."[46]
On January 25, 2012 (NZ local time) Dotcom was initially refused bail due to alleged risks of fleeing to Germany,[47][48] but was granted bail on February 22.[49]
On February 6, Dotcom invited New Zealand journalist John Campbell of Campbell Live to visit his Coatesville property and inspect the damage done by police. According to head of security, Wayne Tempero "... the force was incredible ... Had they simply asked us we would have opened the door to any room they wanted to enter." He said Mr. Dotcom seemed shocked by the police action. "I remember him saying "copyright infringement" and shook his head, like he's going "what the hell?". We weren't building bombs in the cellar, we didn't have a meth lab bigger than the South Island here. This was a normal family house.".[50]
On February 22, Kim Dotcom was released on bail under the condition that he remain within 80 km of his Coatesville residence and is barred from Internet access. Bail was granted after considering his flight risk and seizure of assets. Judge Dawson stated Dotcom has “every reason to stay to be with his family and fight to keep his assets.” The condition of bail came with a successful additional measure brought by the US Government to prevent Kim Dotcom's access to the Internet. Despite concerns about the interaction between Kim Dotcom and his legal team, Judge Dawson sided with the US government because Kim Dotcom "(has) the ability to use it for wrong purposes."[51]
On March 1, Kim Dotcom gave his first interview to New Zealand media after his arrest to John Campbell of Campbell Live.[52] He explained the close ties of his case to that of Viacom vs. YouTube; in which the Digital Millennium Copyright Act (DMCA) shielded YouTube from the infringement of its users and described his surprise when he was arrested without trial or a hearing.[53] Kim Dotcom also provided some of the aspects of his defense. Dotcom explains that the Megaupload was responsible for 800 files being transferred every second and that it would be impossible to police all that traffic. In addition, the US has privacy laws, such as Electronic Communication Privacy Act, which prohibits the administrators from looking into the accounts of the users.
On March 4, he released his diary detailing his first week since being out of prison and expressed his concerns that wife, Mona Dotcom, may be targeted by the US Authorities.[54]
Dotcom has taken part in the Gumball 3000 international road rally on several occasions, winning in 2001 in his Mercedes Brabus SV12 Megacar. He also competed in 2004. In a 2004 interview on Belgian Television, he claimed that in Morocco a car was blocking him and "he had to bump him off the road. Nothing happened to him". He claims he subsequently found out it was the Chief of Police in a "civil" car.[55]
Before his arrest, Dotcom was the world's number one-ranked Modern Warfare 3 player. The game has more than 15 million online players.[56] On January 23, 2012 he lost the position and dropped to number two.[57]
Since 2001, Dotcom has received media coverage as a founder of a Hong Kong based investing company called Trendax. The company claimed to use artificial intelligence to maximize investment return and Dotcom tried to find investors for a hedge fund managed by the company.[58] According to media reports Dotcom never had a proper license to start the fund, though no fraud was suspected.[59]
In 2010, Dotcom leased a NZ$30M mansion at Coatesville, near Auckland, owned by Richard and Ruth Bradley, the British founders of Chrisco, and considered the most expensive house in the country. He had an arrangement to buy the mansion when the lease expired,[60] but the New Zealand Government declined his application to buy the land on the basis that he did not meet the "good character" test.[61] Dotcom was granted permanent residency in New Zealand in 2010.[12][62]
An investigative piece found Dotcom in Hong Kong business records with the new name "Kim Tim Jim Vestor", allegedly bearing a Finnish passport, and acting as director of several "Mega-" companies, among them Megaupload Ltd. and Megarotic Ltd.[11] According to Megaupload spokesperson B. Lam, Kim is one of many shareholders at Mega and not involved in most day-to-day business decisions.[11]
Kim Dotcom has spoken out against his negative portrayal in the media, claiming to be a reformed character and a legitimate businessman who has been unfairly demonized by United States authorities and industry trade groups such as the RIAA and MPAA. He contends that the services offered by his Megaupload site were not significantly different from those of comparable services such as Rapidshare or YouTube, and he has just been used as a scapegoat because of his hacker past. Dotcom is also keen to point out his charitable works, including funding the fireworks display for New Year 2011 in Auckland,[63] and donating large amounts of money to the relief fund following the devastating 2011 Christchurch earthquakes, and explains that his property purchases in New Zealand were approved by several other government Ministers before being vetoed at the last minute by Justice Minister Simon Power, after the United States Department of Justice secretly asked his department for help with their investigation of Dotcom.[64][65]
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