File-Sharing Website Baron to Remain in N.Zealand Custody

Channels Television  
Updated January 24, 2012

The order came from a New Zealand court after he denied internet piracy and money laundering charges.

His bail was denied by the Judge David McNaughton when the prosecutor argued that the German national Kim Dotcom who had multiple identities is a flight risk who also had access to funds and a history of fleeing criminal charges.

His passports has been seized and funds frozen.

Kim Schmitz

The Judge said the bail application was too complicated for an immediate ruling, adding that he would issue a written decision no later than Wednesday.

Dotcom was arrested on Saturday at his Auckland home when 70 police raided his country estate and cut him out of a safe room he had barricaded himself in.

The Federal Bureau of Investigation, which requested the raid, says Dotcom masterminded a scheme that made more than $175 million U.S. dollars in a few short years by copying and distributing music, movies and other copyrighted content without authorization.
Kim Schmitz is a computer programmer and businessman who generated much publicity during the dot-com bubble and was convicted of insider trading, and embezzlement in its aftermath.

He is known for his large frame as he stands 6 feet 7 inches (2.01 m) and weighs in at 300 pounds (140 kg).

Schmitz earned a reputation in his native Germany for cracking corporate PBX systems in the United States, and tried to parlay it into a career in data security.

That effort led to his arrest on charges of using and selling stolen calling card numbers.

In 1994, Schmitz founded a computer security company called DataProtect.

In 1999, DataProtect and IVM engineering presented the “Megacar”, a D2 generation Audi A8 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.

In 1998, Schmitz was sentenced to a probationary sentence of two years for computer fraud and handling stolen goods.

According to a report by News & Record, he had traded stolen calling card numbers he bought from hackers in the United States.

He achieved early notoriety by being the subject of an advanced-for-its-time flash animation video called Kimble Special Agent.

Schmitz 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.