4 Feb 2012

Megaupload founder 'disappointed' bail refused again

8:30 am on 4 February 2012

The lawyer for internet multi-millionaire Kim Dotcom says his client is disappointed with a judge's decision to again remand him in custody.

The 38-year-old German founder of the file-sharing website Megaupload, who also has New Zealand residency, and three other men were arrested at his mansion near Auckland on 20 January this year in connection with a major internet piracy prosecution.

Mr Dotcom and the three other Megaupload employees are accused of money laundering, racketeering and copyright piracy by US agencies, which have shut down Megaupload.

The FBI has been investigating Megaupload, which the US accuses of pirating films and other content, costing copyright holders more than $US500 million in lost revenue.

Kim Dotcom is facing extradition to America, but has appealed against a decision by a judge in the North Shore District Court to keep him in custody.

At the High Court in Auckland on Friday night, Justice Asher agreed with the district court judge that Mr Dotcom is a flight risk.

He was further remanded until 22 February ahead of the extradition hearing.

However, outside court, his lawyer Paul Davison, QC, says there is no evidence supporting that.

"The outcome of the appeal being dismissed is very disappointing to my client. He believes that he has done nothing wrong in relation to the charges that the US government has brought.

"He has made a home for himself and his family here in New Zealand.

"He has absolutely no intention of doing other than remaining here and fighting extradition and the suggestion that he is a risk and that he would take some extraordinary steps to leave New Zealand is a flight of fancy."

Mr Davison said his client would consider appealing against the latest decision.