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Megaupload Wants Charges Dropped, Points Out Judge Failure

Earlier this week District Court Judge Liam O’Grady denied Megaupload’s request to drop the company from the indictment. The judge, however, noted that the cyberlocker could ask for a temporary dismissal until it is decided whether the U.S. Government can serve Megaupload. This ruling surprised Kim Dotcom and his legal team, who quickly filed a new motion pointing out that they already made this request during a hearing in July.

megauploadOn Tuesday, Megaupload’s request to have the criminal charges against it dropped on the grounds that the U.S. Government failed to serve the company, was denied.

District Court Judge Liam O’Grady believes that the authorities could still satisfy the serving requirement if they can prove that Megaupload is an alter ego of Kim Dotcom.

While the motion to dismiss the case for lack of jurisdiction was denied, the judge’s order did leave an option open to dismiss the case temporarily, until Megaupload is properly served.

This suggestion baffled Dotcom and his lawyers, who expressly requested such a temporary dismissal during a hearing in July.


Kim’s surprised

kim

Megaupload’s legal team jumped on the issue and a day later they have filed a renewed request to dismiss the indictment, pointing out the apparent mistake made by Judge O’Grady.

“Megaupload respectfully submits that at oral argument on the motion to dismiss it requested, as an alternative remedy, dismissal without prejudice pending extradition,” they write.

In the supporting memorandum of law Megaupload’s lawyers quote directly from the transcript of the July hearing, where they suggested a temporary dismissal as an option.

“We do think that the alternative would be dismissal without prejudice, allow the Government at the appropriate time to then supercede the indictment again, add the corporation into the indictment.”

“But, in the meantime, having the company subject to the incredible burden of a criminal prosecution with no ability to defend itself and no service is an extraordinary result and one that is unprecedented.”

Dotcom’s legal team reiterates that Megaupload’s due process is at stake. The company has already been destroyed and is being held ransom by the U.S. Government, without any funds to establish a proper defense.

“Before this Court is a corporation that has been criminally indicted, has had its website seized, has had its business destroyed, has had all of its assets criminally frozen, and then been left in an indefinite, ongoing state of criminal limbo, all without the Government complying with Rule 4, attempting to comply with Rule 4, or identifying any prospect that it might comply with Rule 4 any time in the foreseeable future.”

“This combination of circumstances seems inimical to due process, especially considering that the rights of a criminal defendant are at stake,” the lawyers add.

With the renewed motion to dismiss, Megaupload hopes to have the criminal charges against it dropped, at least until the U.S. Government finds a way to serve the company. This may take weeks, months, or may not happen at all.

It is now up to Judge O’Grady to rule on this renewed request, which may come as quite an embarrassment in such a high profile case.

Meanwhile, Kim Dotcom is preparing the comeback of Megaupload, which he says will be bigger and better than its predecessor.

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  • Nick

    This case is just looping on itself….

    • yello

      ” could still satisfy the serving requirement if they can prove that Megaupload is an alter ego of Kim Dotcom”

      This is what their case has come to….. just piss off, seriously…

      • Velkyr

        Oh look. An internet lawyer.

        • Leslie T. Printz

          first on loosing like a pro?..NDOQESB.Tk

        • 7th_Guest

          Oh look. An internet wiseass.

    • The_Strawbear

      So is the reporting of it.

      • The_Bluebear

        So is the commenting of it.

        • Josh

          So is this case…

        • Danny

          Its just looping on itself!

        • Mr. Burns

          Feels like I’ve read this somewhere before…?

        • FrostyC

          I totally bet they plan to serve him properly. In 2085, when it is completely irrelevant. I mean really, how can you hold someone’s assets until they are served properly, then give no limitation of time to the serving party? Crooked tactics.

        • Nick

          Holding someone’s asset is more likely having a sledgehammer beside your balls held by the gov.

    • http://profile.yahoo.com/VUNJ4KHZULJLS4WDBNTHCJZDSY Xavi

      Sharon said I’m impressed that any body can make $8378 in four weeks on the network. did you look at this (Click on menu Home)

    • http://profile.yahoo.com/VUNJ4KHZULJLS4WDBNTHCJZDSY Xavi

      ….goo.gl/BBRj9

  • Pens

    they fucked with the wrong mother fucking burrito, megaupload will return.

    • Pens

      first btw

      • Quest

        first on loosing like a pro?

      • Nigga

        First at sucking cock you mean surely ?

        • JaMakinMeSleep

          Which is why he put btw(blow the wiener).

  • anon

    OMG !! This is getting more ridiculous than ever…

  • http://profiles.google.com/pianogamer Knut Harald

    “if they can prove that Megaupload is an alter ego of Kim Dotcom.”

    LMAO, that’s pretty much how all companies start of, it just takes time before people consider companies an indiviual with rigths, like US banks etc.,
    “Corporations are people, my friend (…), human beings.” – Mitt Romney.
    Many would still call Microsoft an alter ego of Bill Gates, although he doesn’t even lead the company anymore. Now personally, I would rather call Megaupload a worldwide recognized COMPANY, whose “human” rights were grossly violated by the US, as very few knew about it’s founder Kim Dotcom untill the raid.

    • Nick

      good point sir, finally someone who points out something interesting!

    • Guest

      I am sure that the DOJ will argue that a corporation is a person and that Dotcom is the corporation. They will spin it every way possible to suit them but having said that how come people who work in corporations are not charged with the crimes committed by the corporations.

      • Fairandbalanced

        Because the entire fucking system is rigged.

    • Scary Devil Monastery

      Hmm, well, yes, you are quite correct…but that’s not the point.

      The point is they have to prove that Megaupload == Kim Dotcom. I.e. that the legal entities of Dotcom and Megaupload are one and the same.

      That’s like saying that Microsoft is the legal equivalent of Bill Gates and Apple the legal equivalent of Steve Jobs. In short, give Gates a ticket and MS would have to pay it.

      Or in this case, any legal censure made against Dotcom would hit Megaupload and vice versa. That would be a nasty bit of legal trickery if they managed it.

  • http://torrentfreak.com/ Rob8urcakes

    According to the rumour US District Court Judges really are only Human ans, as such, are prone to making mistakes. But this recent scenario is bizarre and shows up this judge as being out-of-touch with the case he’s hearing and supposed to decide upon fairly and impartially.

    That he’s now forcing history to repeat itself by allowing MU to apply YET AGAIN for a temporary dismissal is nothing short of inept.

    I hope MU lodge a complaint against this judge on grounds of incompetent negligence.

    • GrumpyGit78

      incompetent negligence or pressure from above?

      Who would the complaint be lodged with?….would you hold out hope?

      • http://profiles.google.com/zerianis10 Christopher Kidwell

        The Bar Association for one, since this appears to be a pretty blatant error on the judges part.

    • MadAsASnake

      Well, an NZ judge stepped aside from the case for a far slighter transgression than this (under US pressure). I would not be surprised if some sort of impeachment process is started if O’Grady does not find a way to ensure that the current situation is rectified.

      It is all very well altering case management to deal with procedural difficulties that were not forseen or mistaken, however, if DOJ cannot work out how to serve, they can’t serve. I think O’Grady would have done better if he had instructed DOJ to file under Rule four within a limited or reasonable period of time, failure of which would see the motion to dismiss granted.

  • 0omg

    Google translator for juge : mmm the usa might give me more money soooo no you still might go into trial for my big pocket … come back later i might have decided on a price for the usa to hang you …

    • Truec

      I’m not entirely certain you understand how the judicial system works.

      You see, both sides are equally able to bribe the judge.

      • Arse

        You seem to miss the obvious, but Kim Dotcom’s assets are seized. How is bribery on his part possible?

        • lattari

          He can give gaming tips.

  • Anonymous

    at a rough guess, it looks to me like either District Court Judge Liam O’Grady is totally bias against Mega/Dotcom, is scared of going against the DoJ and that there will be recriminations against him, or he has been ordered (read bribed) by the DoJ and the US entertainment industries (or on their behalf) to keep the case going for as long as possible. to do so on the presumption that Congress didn’t mean it was right to allow a company to get away with something because it is outside US law (ignoring the fact that Congress and the US government in general would be appalled if the same thing were to happen against a USA company in another country) or that a company may be extradited at sometime in the future, so may then be able to be served is an absolute piss take, not only in this case but of justice and the law in general. what right has O’Grady got to make up or change the law or bring into a legal argument what he thinks that Congress may or may not have meant to do? if Congress didn’t put something in a law, they didn’t put it in. if they meant it to be in that law, they should amend the law. a judge certainly has no right to change it! the USA know exactly how big a screw-up they have made over this case. they know how they are now being questioned over all the present laws/rules/agreements they are trying to bring in, in secret (eg. ACTA, TPP, etc), that will benefit no one other than them. they know how they have dropped other countries (eg. NZ, Sweden, Holland, UK) in the shit with their own citizens over there self preserving attitudes and orders of locking up people for sharing files. it is about time this shit stopped! if the USA is so bothered about preventing their stuff from being shared, keep the fucking lot in the USA! the rest of the world will manage without it! they will also manage without you keep instigating wars and acts of aggression against whoever you want, in the name of freedom, when you are as bad as communist and fascist countries yourself!

  • Kimdotcom is a Scapegoat

    I’m too tired to read the whole article or make an interesting comment but I can imagine the US Government has massive teams of unpaid law interns scouring through all the law books for more obscure laws to be used out of context to prevent dismissal of this case.

    P.S. Just started watching (Whilst vegetating on the sofa) – ZEITGEIST: MOVING FORWARD on YouTube about the evils of capitalism. I Think this seemingly interesting documentary is apt considering capitalism is at the heart of most of the fails in the copywrite system.

    • http://www.facebook.com/profile.php?id=100002639684444 Ryan Smith

      Why did you say copywrite? You know that has an entirely different meaning than copyright, yeah?

      • Bakapinkuu

        True, but capitalism is at the heart of most of the fails in the copywrite system too. (^_~)

        (Exhibit A being Faux News.)

        • Scary Devil Monastery

          Well, no.

          “Copyright” is state-enforced information control, complete with severe property ownership restrictions leveraged on every citizen…It’s really more of a communistic staple, hiding under a false flag of “capitalism”.

      • Kimdotcom is a Scapegoat

        I think your being a little pedantic it was just a typo I’m dyslexic and need to use spell check a lot plus I’m probably a bit thick. But thanks anyway Ryan Smith I’m sure your not as mean as your harsh criticism would suggest.

    • Guest
    • Kimdotcom is a Scapegoat

      WHOOPS faux pas meant copyright not copywrite don’t know how to edit mistakes in order to write my rong

      • ScrewEwe2

        At least your faux pas was not posting pictures of Kim in a thong, cuz dat wood bee rong.

    • AJA0

      You’re an idiot if you think capitalism has anything to do with idiotic copyright laws.

  • YinxDoo

    The US Kangaroo COurt system really cracks me up sometimes.
    PrivacyMatters.tk

  • http://www.facebook.com/profile.php?id=100002639684444 Ryan Smith

    What to do when those enforcing the legal system no longer observe the laws in place?

    • MadAsASnake

      Civil disobedience.

    • 7th_Guest

      Innovation & business migration.

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  • Flubaluba

    LOL this whole case is becoming more of a farce every time I read anything new about it. The best thing this Judge can do is just dismiss it , return all funds and property to there rightful owners and wait the DOJ to continue with legal action. Or at least give the DOJ a week at most to come forward with evidence as to why the case should not be dismissed in its entirety. If no evidence is forthcoming there was then no evidence to do what they did and cost need to be paid to compensate.

    • Guest

      I’d love to know what the loss of earnings are right now for MegaUpload. TorrentFreak, any ideas? Do maybe two estimates. One based on the monthly income of MU at the time of closer and one with projected growth worked in. The U.S. tax payer would have a lot to cough up that’s for sure. :S

  • Guest

    I just knew that the Judge would come out with utter BS in order to keep the case from being dismissed. I mean saying to Megaupload in this ruling that they can apply for a temporary dismissal knowing full well from the court hearing that they applied for “temporary” dismissal. Seems that this Judge is trying to vie with John Key and Banks of NZ for the position of Brain Drain.

  • Fuckaire

    what is going on behind the scenes at uTorrent and BitTorrent offices? What the hell is going on with the programmers who work for this software company? Why some uTorrent releases are not official and others are? Why the deliberate destruction of uTorrent and BitTorrent software? So many questions and so few answers?
    This software company offers the public a free product and needs adware in order to pay the bills but it is the public who uses uTorrent and BitTorrent that make this software globally famous!
    Old versions are far better than the new ones!

  • Anon

    Like the Judge is REALLY going to admit he made a mistake – NEVER going to happen. It will take another judge (with some BALLS) or an appellate court to change things.

    • Anon

      Judges are like umpires. Some are balls, some are strikes but they ain’t nothin’ until the judge tells you what it is.

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  • Uuubuntu

    US has the same level of freedom of speach as China has, but China don’t pretend it isn’t.

  • foff

    This judge is a big fail. His ruling is a joke and will never stand. i grew up strongly believing capitalism is the best system but the big failure of capitalism is greed and hoarding. Supposedly the richest person in the world is a Mexican telecom king. How can a guy in good conscience sit on such a fortune when 3/4ths of the people in his country live in 3rd world poverty conditions? Just giving money away to unjustified charities is a waste. The money used correctly should be used to improve and uplift humanity and the human condition.

    Copyright is just anther example of this hoarding attitude. How can you advance arts and sciences if you lock up ideas for 100 years and control the distribution of said ideas allowing some access to them and denying others? Those that are pushing this case and others are scum of earth, they are doing humanity no favors. There is not enough resources in the world nor any need for everyone to be a billionaire or even a millionaire. If everything were shared like we share on the internet all would have more than enough. I have lifetimes of stuff I have downloaded, if other things were shared the same way I would have more stuff then I know what to do with.

    • http://profiles.google.com/zerianis10 Christopher Kidwell

      Exactly right about copyright. It was meant to be for SHORT periods to allow people to recoup their investments in creating new things.

      Short meaning 5-10 years, tops.

    • http://www.facebook.com/bovski Dmitri Bovski

      I think you are confusing Copyright’s with Patent’s

  • MrSmith

    What did I say about the US government dragging this one out? This won’t see an end until 3-5 years down the road… By then all Kim’s money from megaupload has been exhausted unless his new business takes off.

    • Guest

      No doubt the DOJ and MPAA will be throwing their toys out of the pram and having a mega nuclear ballistic fallout in trying to get this new Mega stopped or shutdown.

  • got runs?

    Judge Liam O’Grady is a riaa/mpaa monkey.

  • Corrupt Justice

    Proud .. to be an Americaaaaan, cuz they let me think I’m freeeee ..

  • http://twitter.com/krozareq krozareq

    Good fucking luck.

  • Andrew Lee

    Well rofl this is just plain confusing as shit…. How can your alter ego be a server will someone please explain this to me. I mean yeah I get Batman but Megaupload Man? Is judge Grady fucking high on crack?

    Megaupload Man he’s waiting to swoop in and make your ass wait 72 minuets if you don’t have a account.

    Too bad my government has turned him into a fucking hero in my eyes. The fucked up bad really really bad no scratch that ultra super mega holy fucking shit on a stick bad.

    Just know people I’m not the one who voted these fucking morons in. I had option A and Option B which happened to suck just as much as A so I said forget it and tore up my voter card which actually got me kicked out from the water companies awesome tin shack office about 10 years ago.

    • Guest

      Is judge Grady fucking high on crack?

      Odds are the MPAA has been giving him access to their stash in return for rulings like this one.

  • Guest

    Judge failure my ass!

    Judge Liam O’Grady is a corrupted piece of shit!

    These days everything is like that with the US federal government! All the 3 branches filled with a truck load of criminals who use the constitution as toilet paper daily! Let’s jail them all or hang them all whatever come first!

    That’s all I have to say.

  • qingtian996

    tinyurl.com/8rezfs7

  • Drake

    All hail Megaupload!

    If they really make a comeback I will send them a few thousand bucks to help them prepare better against the next “invasion” against them, which is sure to happen as it now seems internet independence is over with restrictions and censorship growing stronger all around the world, even through the filters of Google, right to the governmental medlings.

  • Cero

    Guy is coming out in time for BLOPS 2 >_<

  • http://profiles.google.com/patrick.pilcher patrick Pilcher

    I am from New Zealand where kim dotcom the owner of megaupload is based. Most New Zealanders regard him as a vaguely amusing fat guy who has had far to much media attention. Sadly the NZ media has also painted him as a modern day robinhood, when in reality his well oiled PR machine has made some big plays to score points. A growing number of New Zealanders just want this guy to go away as they’re tired of his near constant media presence

    • MadAsASnake

      Sure. You don’t think the NZ Police, GCSB, Prosecutor etc should have adhered to NZ law do you? Have a look at TPP (that is what Key wants to agree behind closed doors on our behalf (I’m Kiwi too – but expat) TPP basically allows all sorts of intrusive measures on YOU on behalf of the same corrupt Americans that tried to take out Dotcom. TPP allows invasion into your home, and malicious prosecution or you for what your family may or may not have done, based on unsubstatiated accusations. Note that these “treaties” (SOPA, PIPA and so on) also write in immunitiy for the corporate accusers. Get the NZ gov to kick TPP and all it’s successors into the long grass, they’ll loose interest in DotCom soon enough. In the meantime, he has the right to scream blue murder as that i what it is. Most victims of the MPAA / RIAA (like O’Dwyer for instance) simply don’t have the resources to battle the corrupt extra-judicial bullying. DotCom does. Great

    • http://profiles.google.com/zerianis10 Christopher Kidwell

      Yeah, Patrick, I think that you are spewing bullshit at the moment. From what I have read, New Zealanders are supportive of Kim for exposing some very troubling things in their government.

  • shewer
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  • Bagpipipe

    i think this is intentionaly from the US. “o Darn they slipt thru on a tecnicakity but we still think they are pirates” all to save there face from a real trial.

  • Megaupload Forever !

    FUCK US !
    Megaupload will re-open in EU ! Emmanuel Gadaix, technical director of MegaPay just said this yesterday. All services will return ! Yeah Yeah Yeah !
    Google trad : http://www.youtube.com/watch?f
    Suck me fucking censors of Americans, we fuck you, all of you ! In your ass bitches !

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