I could not find the original thread this was posted in. Seems the US Government never had a case against him because they can't charge him.
Megaupload Trial May Never Happen, Judge Says
A US judge has put a bomb under the Megaupload case by informing the FBI that a trial in the United States may never happen. The cyberlocker was never formally served with the appropriate paperwork by the US authorities, as it is impossible to serve a foreign company with criminal charges.
The US Government accuses Kim Dotcom and the rest of the “Mega Conspiracy” of running a criminal operation.
Charges in the indictment include engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering and two substantive counts of criminal copyright infringement.
While the prosecution is hoping to have Megaupload tried in the US, breaking news suggests that this may never happen.
It turns out that the US judge handling the case has serious doubts whether it will ever go to trial due to a procedural error.
“I frankly don’t know that we are ever going to have a trial in this matter,” Judge O’Grady said as reported by the NZ Herald.
Judge O’Grady informed the FBI that Megaupload was never served with criminal charges, which is a requirement to start the trial. The origin of this problem is not merely a matter of oversight. Megaupload’s lawyer Ira Rothken says that unlike people, companies can’t be served outside US jurisdiction.
“My understanding as to why they haven’t done that is because they can’t. We don’t believe Megaupload can be served in a criminal matter because it is not located within the jurisdiction of the United States,” Rothken says.
Megaupload’s lawyer adds that he doesn’t understand why the US authorities weren’t aware of this problem before. As a result Judge O’Grady noted that Megaupload is “kind of hanging out there.”
If this issue indeed prevents Megaupload from being tried in the US, it would be a blunder of epic proportions. And it is not the first “procedural” mistake either.
Last month the New Zealand High Court declared the order used to seize Dotcom’s property “null and void” after it was discovered that the police had acted under a court order that should have never been granted.
The error dates back to January when the police applied for the order granting them permission to seize Dotcom’s property. Rather than applying for an interim restraining order, the Police Commissioner applied for a foreign restraining order instead.
The exact ramifications of the failure to serve will become apparent in the near future.
Update: Megaupload founder Kim Dotcom responds, and he’s not happy.
Kim Dotcom Lashes Out Against “Corrupt” US Government
The US judge handling the Megaupload case noted today that it may never be tried due to a procedural error, a comment that has sparked the anger of Megaupload’s founder. Kim Dotcom is furious with the US Government for destroying his businesses and rendering hundreds of people unemployed. According to Dotcom the case is the result of “corruption on the highest political level, serving the interests of the copyright extremists in Hollywood.”
Earlier today the news broke that a Megaupload trial may never happen because the US Government failed to serve the now defunct file-hosting company.
While some defendants might respond with relief upon hearing such news, Megaupload founder Kim Dotcom is only becoming more furious at the people who destroyed his businesses.
“The US government has terminated Megaupload, Megavideo and 10 other subsidiaries, including a company called N1 Limited that was developing a clothing line,” Dotcom told TorrentFreak.
“They destroyed 220 jobs. Millions of legitimate Mega users have no access to their files.”
If Judge O’Grady is to be believed all this damage could very well have been for nothing because the authorities simply can’t serve foreign companies. This could lead one to wonder whether the whole setup was to simply destroy Mega’s businesses.
This is certainly a theory Dotcom subscribes to, and it’s not the only dirty trick Megaupload’s founder believes the US Government is playing. The US is structurally denying Megaupload the chance to put up a fair fight.
“We are refused access to the evidence that clears us, we are refused funds to pay our lawyers, we are refused to pick the lawyers we want to represent us and have any chance for a fair trial,” Dotcom says.
For Megaupload the worst part is that the damage can’t be undone. The site has been completely destroyed as well as the plans to become a publicly traded company.
“We have already been served a death sentence without trial and even if we are found ‘not guilty’ which we will, the damage can never be repaired,” Dotcom says.
According to Megaupload’s founder it is quite clear that the Mega investigation was a ‘gift’ to Hollywood, facilitated by corrupt forces.
“This Mega takedown was possible because of corruption on the highest political level, serving the interests of the copyright extremists in Hollywood,” he says. “Mega has become a re-election pawn.”
Nevertheless, Dotcom is confident that these forces will eventually be exposed.
“It is just a matter of time until the truth comes out. We are working on that and we are making good progress,” Dotcom concludes.