By Jan. 20 (BusinessDesk) – Kim Dotcom, the
founder of file-sharing site megaupload.com, has been
arrested in Auckland this morning as part of an operation
led by the US Department of Justice targeting large scale
criminal copyright infringement and money
laundering.
Dotcom, born Kim Schmitz, was arrested
alongside four others by the New Zealand Organised &
Financial Crime Agency and the New Zealand Police, after a
request was made by the United States to arrest extradite
the parties. Dotcom has New Zealand residency, but the
Overseas Investment Office last year declined his bid to
purchase property in Coatesville.
Hackers attacked and
brought down the USDoJ website in response to the arrests,
with responsibility claimed by the hacker organisation
Anonymous.
The file-sharing co-founder is wanted by the
United States Federal Bureau of Investigation for allegedly
facilitating and engaging in criminal copyright infringement
and money laundering of more than US$500 million. US Federal
authorities have charged seven people and two corporations
in the US with running an international organised crime
enterprise, and the remaining three people are still at
large, the FBI said in a statement.
“The FBI contacted
New Zealand Police in early 2011 with a request to assist
with their investigation,” said Grant Wormald, detective
inspector of the New Zealand Police. “All the accused have
been indicted in the US. We will continue to work with the
US authorities to assist with extradition
proceedings”
More than 20 search warrants were executed
across eight countries, and some US$50 million in assets
were seized.
New Zealand police seized luxury cars with
an estimated total value of about $6 million. More than $10
million has been seized from NZ financial
institutions.
Among property named subject to forfeiture
in the FBI Indictment include local accounts with Bank of
New Zealand, Kiwibank and HSBC.
The four parties will
appear in the North Shore district court this
afternoon.
The megaupload.com website is currently down.
The online storage and file delivery service it was
previously the 13th most visited website on the internet,
claiming to have more than one billion visitors.
Ports of Auckland staff to face redundancy
Ports of
Auckland told its 350 workers they face redundant as it
seeks to hire outside contractors following a formal
consultation with the Maritime Union of New Zealand this
morning.
The meeting between the two parties was used as
an opportunity for the union to share the details of a
request for proposal issued to several outside contracting
companies last week.
The meeting was “about the vision
for the proposal,” ports spokeswoman Catherine Etheredge
said.
A sixth union 24-hour strike planned for Jan 31 was
called off on Wednesday night after ports agreed to let MUNZ
hold a stop-work meeting for four hours on the same day.
However, the union expects to give notice of another strike
if the proposal to pursue outside contracting is
continued.
The RFPs issued by the port is expected to be
returned to the company by the end of the month.
Union
president Garry Parsloe has previously said if redundancies
go ahead he doesn't know where ports will find an equally
skilled workforce and warns that a high number will likely
leave New Zealand.
NZ dollar dips below 62 euro cents
on bond auctions
The New Zealand dollar dropped
below 62 euro cents for the first time in more than a week
following successful bond sales in France and Spain,
boosting optimism the regions sovereign debt crisis is being
maintained.
The New Zealand dollar was traded at 61.86
just before midday, down from 62.01 euro cents just before
8.30 and 62.37 cents at 5pm yesterday. The kiwi remained
little changed on 80.27 US cents from 80.23 US cents.
The
euro rallied after French borrowing costs declined as the
nation sold 7.97 billion euros in its first sale of medium
and long term debt since losing its AAA rating from Standard
& Poor’s last week. Spain sold 6.6 billion euros of bonds
due in 2016, 2019 and 2022, exceeding the maximum 4.5
billion euro target set for the auctions. It issued debt due
in 2022 at an average of 5.4 percent, down from 6.9 percent
in November.
“The euro had a very good night with the
market focusing on good bond sales,” said Stuart Ive,
currency strategist at HiFX. “The yield falling shows
there is more resistance in euroland – it was the first
real test after the downgrades.”
Greek Prime Minister
Lucas Papademos will enter a second day of talks with
private creditors in an attempt to lower the nation’s debt
levels. Papademos is racing to secure a deal to finance a
package for the cash-strapped country before a March 20 bond
repayment of 14.5 billion euros.
“We will be watching
the headlines as per normal,” Ive said. “Any news,
positive or negative, is going to have a massive effect on
the currencies.”
GPG appoints new director to its
board
Guinness Peat Group, the investment company
which is in the process of selling back its assets, has
tapped investment bank Scott Malcom to join its board as a
new independent director.
Malcom, a partner at
Sydney-based advisory firm Greenstone Partners, will take
over the gap left opened by ASB chairman Gavin Walker in
July. The group, founded by Ron Brierley, has been selling
its assets after shareholders last year agreed to a plan
that would return their funds. Having sold its stake in
fruit marketer Turners & Growers last month, its last New
Zealand asset is a 35 percent stake in insurer
Tower.
“Scott brings wide-ranging experience to the GPG
board during the implementation of its strategy to realise
value,” chairman Rob Campbell said in a
statement.
Murray founded Greenstone Partners in 2003,
having previously worked for Credit Suisse on a broad range
of mergers and acquisitions.
The shares remain quoted at
yesterday's closing price, 54.5
cents.
(BusinessDesk)
