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Megaupload case near collapse: report

Farce piled upon farce

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An American district court judge has cast doubt over the whole Megaupload trial, telling the FBI the criminal charges against Kim Dotcom may never make it to trial.

The New Zealand Herald is reporting that during a hearing in Virginia the judge, Liam O’Grady, doubted if “we are ever going to have a trial in this matter” when advised that Megaupload has never been served with papers in the US.

As the newspaper notes, the criminal conspiracy charges in America are vital to the trial as a whole: without a charge carrying a five-year maximum sentence, the FBI won’t be able to meet the criteria necessary to having Dotcom extradited.

The judge’s remarks were made during ongoing legal argument over the future of data held on Megaupload’s servers, during which judge O’Grady asked for more information about why Megaupload had not been served in America.

The company’s lawyer in America, Ira Rothken, reportedly answered that criminal charges could not be laid against Megaupload because it’s not located in US jurisdiction. Prosecutor Jay Prabhu contends the company doesn't matter, because Dotcom - who owns 68 percent of Megaupload - is the FBI's target.

Should the case collapse in America, the only remaining recourse would be to try and secure criminal copyright-breach charges in New Zealand. Without charges in America, however, it’s an open question as to whether evidence supplied by the FBI would be admissible.

The case has been increasingly marred by legal missteps. Earlier, a restraining order seizing Dotcom’s assets was set aside after a paperwork error was discovered; it was reinstated only last week. ®

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Anonymous Coward

The New Justice[tm]

Music execs! Movie bosses! Can't get what you want? That annoying snot overseas still making your blood boil? No worries, here's your answer: For a special fee, get the FBI to trump up some charges, they'll handle the interpol paperwork and have the locals raid your target, and then see to it that the charges are dropped for some silly reason or another. Your target's business destroyed, no trial to lose, what's not to love? You win, they lose, what's not to love? Special rates on request! Call today!

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Anonymous Coward

Can that prosecutor please explain...

... how the company being out of jurisdiction is a non-issue because the FBI's target is, er, a German citizen in New Zealand, ie possibly even more out of US jurisdiction?

Whatever the guy's antecedents, I find it... curious how the US public puts up with a "justice" system at least as crooked as the people they're going after. Whatever their motivation, it's not about having the moral high ground. And it's not about a fair fight either.

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0
Anonymous Coward

"Scot free"?

If having your companies dismantled by a foreign power without legal grounds counts as such, I suppose.

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