A Faulty Search Warrant In The Case Of Megaupload: FBI Shared Info With Police Authorities

August 19, 2012 by
Filed under: Announcements & Events, Entertainment Industry, File-Sharing Programs, Networks & Services, Legal P2P News & Issues 

The Federal Bureau of Investigation (FBI) apparently shared vital information about Kiwi flicks and Megaupload’s users with the police. On that basis, the former obtained a (faulty) search warrant. From that moment on, hell was unleashed.

According to a document released by New Zealand’s courts of justice, Megaupload used to host copies of Love Birds flicks starring Rhys Darby and Temuera Morrison. Furthermore, the document also contained details about New Zealand-based users who had accounts on Megaupload and made money out of Kim’s business. After finding out that the search warrant was invalid, Judge David Harvey agreed that this information is of great public interest.

The application for the search warrant was filed by detective sergeant Nigel McMorran of the Organised and Financial Crime Agency of New Zealand. According to it, the FBI offered details of movies hosted on MU’s servers while also including information of “a number of New Zealanders who are making money from the uploading of movies.” It named four individuals, but the Crown managed to keep them anonymous. One of these four persons allegedly made $5.072 from uploading files on a period of 14 months (until February 2010).

As a matter of fact, the indictment stated that Dotcom and his colleagues encouraged users to upload files by offering money. However, this “reward-if-you-upload” system was put to an end two years before the raid.

“Through copyright infringement [the accused] has been able to generate millions of dollars of profit. This illegally generated money has been used to fund the extravagant lifestyle of Dotcom and his associates,” McMorran said.

He continued saying that the obtained money was used to pay for “luxury trips around the world on private superyachts and jets, luxury vehicles and expensive household items and gifts.”

FBI’s operation lasted for six months; during that time an agent downloaded approximately $2.500 worth of movies, software and TV programmes. Moreover, according to the application, Kim’s company used “high-powered” servers in NZ.

The North Shore District Court of New Zealand will decide in March 2013 if Dotcom and three of his co-workers will be extradited to the U.S. or not.

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