Case 1:12-cr-00003-LO Document 1 Filed 01/05/12 Page 1 of 72 PageID# 1
`Case 1:12—cr—OOOO3—LO Document 1 Filed 01/05/12 Page 1 of 7
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`EASTERN DISTRICT OF VIRGINIA
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`Alexandria Division
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`Criminal No. I:l2CR3
`
`Count One: 18 U.S.C. § 1962(d) -
`Conspiracy to Commit
`Racketeering
`
`Count Two: 18 U.S.C. § 371 -
`Conspiracy to Commit Copyright
`Infringement
`
`Count Three: 18 U.S.C.§ 1956(h) -
`Conspiracy to Commit
`Money Laundering
`
`Count Four: 18 U.S.C. §§ 2, 2319;
`17 U.S.C. § 506 -
`Criminal Copyright Infringement By
`Distributing a Copyrighted Work
`Being Prepared for Commercial
`Distribution on a Computer Network
`& Aiding and Abetting of Criminal
`Copyright Infringement
`
`Count Five: 18 U.S.C. §§ 2, 2319;
`17 U.S.C. § 506 —
`Criminal Copyright Infringement By
`Electronic Means &
`
`Aiding and Abetting of Criminal
`Copyright Infringement
`
`UNDER SEAL
`
`) ) ) ) ) ) ) ) J ) ) ) ) ) )
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`)
`)
`)
`)
`)
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`I ) ) ) ) ) ) ) ) ) )
`
`UNITED STATES OF AMERICA
`
`KIM DOTCOM,
`MEGAUPLOAD LIMITED,
`VESTOR LIMITED,
`FINN BATATO,
`JULIUS BENCKO,
`SVEN ECHTERNACI-I,
`MATHIAS ORTMANN,
`
`ANDRUS NOMM, and
`
`BRAM VAN DER KOLK,
`
`Defendants
`
`INDICTMENT
`
`JANUARY 2012 TERM — at Alexandria, Virginia
`
`THE GRAND JURY CHARGES THAT:
`
` IN THE UNITED STATES DISTRICT COURT FOR THE
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`
`
`
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`a»t".b!.-‘.r‘i.tfi=‘fi*°5!.*-*=
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`
`
`

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`GENERAL ALLEGATIONS
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`At all times relevant to this Indictment:
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`1.
`
`KIM DOTCOM, MEGAUPLOAD LIMITED, VESTOR LIMITED, FINN
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`BATATO, IULIUS BENCKO, SVEN ECHTERNACH, MATHIAS ORTMANN, ANDRUS
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`NOMM, and BRAM VAN DER KOLK, the defendants, and others known and unknown to the
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`Grand Jury, were members of the “Mega Conspiracy,” a worldwide criminal organization whose
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`members engaged in criminal copyright infiingement and money laundering on a massive scale
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`with estimated harm to copyright holders well in excess of $500,000,000 and reported income in
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`excess of $175,000,000.
`
`2.
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`Megauploadcom is a commercial website and service operated by the Mega
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`Conspiracy that reproduces and distributes copies of popular copyrighted content over the
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`Internet without authorization. Since at least September 2005, Megauploadcom has been used
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`by the defendants and other members and associates of the Mega Conspiracy to willfully
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`reproduce and distribute many millions of infringing copies ofcopyrighted works, including
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`motion pictures, television programs, musical recordings, electronic books, images, video games,
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`and other computer software. Over the more than five years of its existence, the Mega
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`Conspiracy has aggressively expanded its operations into a large number of related Internet
`...fl;nn!-.xi:u.mn_.._
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`businesses, which are connected directly to, or at least financially dependent upon, the criminal
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`conduct associated with Megauploadcom.
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`3.
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`Megauploadcom was at one point in its history estimated to be the 13th most
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`frequently visited website on the entire Internet. The site claims to have had more than one
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`billion visitors in its history, more than 180,000,000 registered users to date, an average of
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`

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`50 million daily visits, and to account for approximately four percent of the total traffic on
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`the Internet.
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`4. ’s income comes primarily from two sources: premium
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`subscriptions and online advertising. Premium subscriptions for Megauploadcom have been
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`available for online purchase for as little as a few dollars per day or as much as approximately
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`$260 for a lifetime. In exchange for payment-, the Mega Conspiracy provides the fast
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`reproduction and distribution of infiinging copies of copyrighted works from its computer
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`servers located around the world. Premium users of the site, a small percentage of the overall
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`user base, are able to download and upload files with few, if any, limitations. Subscription fees
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`collected during the existence of the Mega Conspiracy from premium users are estimated to be
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`more than $150 million. Online advertising on Megauploadcom and its associated websites,
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`which is heavily dependent on the popu1an'ty of copyright infiinging content to attract website
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`visits, has further obtained more than $25 million for the Mega Conspiracy.
`
`5.
`The financial proceeds of Megauploadcom have been primarily directed to four
`sources. First, the Conspiracy has directed the bulk ofits revenues to the defendants, corporate
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`entities they control, other co-conspirators, and employees for their private financial gain.
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`Second, the Mega Conspiracy has spent millions of dollars developing and promoting
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`Megauploadcom and complementary Internet sites and services, such as Megavideocom,
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`Megaclick.com, Megapomcom, and a host of others (collectively the “Mega Sites”). Third, for
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`much of its operation, the Mega Conspiracy has offered an “Uploader Rewards” Program, which
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`promised premium subscribers transfers of cash and other financial incentives to upload popular
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`works, including copyrighted works, to computer servers under the Mega Conspiracy’s direct
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`control and for the Conspiracy’s ultimate financial benefit. The more popular content that was
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`present on Mega Conspiracy servers would increase the number of visitors and premium users
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`that the Conspiracy could monetize. In total, the Mega Conspiracy directly paid uploaders
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`millions of dollars through online payments. Fourth, the Mega Conspiracy spends millions of
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`dollars per month on the infrastructure supporting their businesses, including the leasing of
`computers, hosting charges, and Internet bandwidth.
`I.n contrast to legitimate Internet
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`distributors of copyrighted content, Mggg1p_lo_.ag<_:g_1n does not make any significant payments to
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`the copyright owners of the many thousands of works that are willfully reproduced and
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`distributed on the Mega Sites each and every day.
`6.
`Any Intemet user‘who goes to the Megauploadcom website can upload a
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`computer file. Once that user has selected a file on their computer and clicks the “upload”
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`button, Megauploadcom reproduces the file on at least one computer server it controls and
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`provides the uploading user with a unique Uniform. Resource Locator (“URL”) link that allows
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`anyone with the link to download the file. For example, a link distributed on December 3, 2006
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`by defendant DOTCOM (www.megaupload.com/?d=BYl SXESV) links to" a musical recording
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`by U.S. recording artist “50 Cent.” A single click on the link accesses a Megauploadcom
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`download page that allows any Internet user to download a copy of the file from a computer
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`server that is controlled by the Mega Conspiracy.
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`7.
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`Megauploadcom advertises itself as a “cyberlocker,” which is a private data
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`storage provider. However, as part of the design of the service, the vast majority of
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`Megauploadcom users do not have significant capabilities to store private content long-terrn.
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`Unregistered anonymous users (referred to as “Non-Members” by the Conspiracy) are allowed to
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`upload and download content files, but any Non-Member-uploaded content that is not
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`downloaded within 21 days is permanently deleted. Similarly, registered free users (or
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`“Members”) are allowed to upload and download content files,‘ but each uploaded file must be .
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`downloaded every 90 days.in order to remain on the system. Only premium users have a
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`realistic chance of having any private long-term storage,’ since their files are not regularly
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`deleted due to non-use. In contrast, when any type ofuser on gzggm uploads a copy
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`of a popular file that is repeatedly downloaded, including infringing copies of copyrighted works
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`available.for download, that file remains on Mega Conspiracy-controlled computers and is
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`available for distribution by anyone who can locate an active link to the file.
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`8.
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`Once a user clicks on a link, the user is generally brought to a download page for
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`the file. The download page contains online advertisements provided by the Conspiracy, which
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`means that every download on Megaupload.com provides a financial gain to the Conspiracy that
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`is directly tied to the download. The more popular the content, such as copies of well-known
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`copyrighted works_, the more users that find their way to a Megauploadcom download page; the
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`access of these additional users, in turn, makes the Mega Conspiracy more money. Because only
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`a small percentage of Megauploadcom users pay for their use of the systems, Mega
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`Conspiracy’s business strategy for advertising requires maximizing the number of online
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`downloads (i. e., distributions of content), which is ‘also inconsistent with the concept of
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`private storage.
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`9.
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`In addition to displaying online advertisements, the download pages on
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`Megauploadcom are designed to increase premium subscriptions. All non-premium users are
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`encouraged to buy a premium subscription to decrease wait and download times, which can be at
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`' Even then, all users are warned in Megaupload.com’s “Frequently Asked Questions” and
`Terms of Service that they should not keep the solecopy of any file on Megauploadcom and that
`users bear all risk of data loss. The Mega Conspiracy’s duty to retain any data for even a
`premium user explicitly ends when either the premium subscription runs out or Megauploadcom
`decides, at its sole discretion and without any required notice, to stop operating.
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`5
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`least an hour for popular content (and, for some periods of time, these users have been ineligible
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`to download files over a-certain size). As a result, non-premium users are repeatedly asked by
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`the Conspiracy to pay for more and faster access to content on Megauploadcom. Users are also
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`prompted to view videos uploaded to Megauploadcom directly on a proprietary player designed
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`by the Conspiracy-and offered through the Megavideo.com website and service. Users have also
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`been asked if they want to generate a new link to the downloading file and import it to their own
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`Megauploadcom accounts, which facilitates distribution that is again inconsistent with
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`private storage.
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`10.
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`The content available from Megauploadcom is not searchable on the website,
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`which allows the Mega Conspiracy to conceal the scope of its infiingement. Instead of hosting a
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`search fimction on its own site, the Mega Conspiracy business model purposefully relies on
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`thousands of third party “linking” sites, which contain user—generated postings of links created
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`by Megauploadcom (as well as those created by other Mega Sites, including Megavideo.com
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`and Mega1_3_orn.com). While the Conspiracy may not operate these third party sites, the Mega
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`Conspiracy did provide financial incentives for premium users to post links on linking sites
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`through the “Uploader Rewards” program, which ensured widespread distribution of
`Megauploadcom links throughout the Internet and an inventory ofpopular content on the Mega
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`Conspiracy’s computer servers. These linking sites, which are usually well organized and easy
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`to use, promote and direct users to Mega Conspiracy download pages that allow the reproduction
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`and distribution of infringing copies of copyrighted works.
`
`1 1.
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`Popular linking sites that contained Mega Conspiracy-generated links include:
`
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`ninjavideo.net, rnegauploadnet, megareleasenet, kino.to alluc.org, peliculasyonkiscorn,
`
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`seriesyonkiscom, surfihecha.nnel.com taringa.net, thepiratecityorg, and mulinks.com. While
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`several of these websites exclusively offer Megauploadcom links, all maintained an index of
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`URL links to identified copies of copyrighted content that were stored on servers directly
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`controlled by the Mega Conspiracy.
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`12.
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`The Mega Conspiracy closely monitors the traffic from linking sites to the Mega
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`Sites and services. The Conspiracy is aware that linking sites generate a very high percentage of
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`the millions of visits to its websites and services each week and provide the Conspiracy direct
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`financial benefits through advertising revenue and opportunities for new premium subscriptions.
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`13.
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`Members of the Mega Conspiracy have knowingly interacted with users of
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`linking sites and visited the sites (and associated online forums) themselves. Specifically, some
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`of the defendants have instructed individual users how to locate links to infringing content on the
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`Mega Sites (including recommending specific linking websites). Several of the defendants have
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`also shared with each other comments from Mega Site users demonstrating that they have used
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`or are attempting to use the Mega Sites to get infringing copies of copyrighted content.
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`14.
`
`In contrast to the public who is required to significantly rely on third party
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`indexes, members of the Conspiracy have fiall access to the listings of actual files that are stored
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`on their servers (as well as the Megaupload.com- and Megavideo.com- and Megapom.com-
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`generated links to those files). Conspirators have searched the internal database for their '
`associates and themselves so that they may directly access copyright-infringing content on
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`I all
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`servers leased by the Mega Conspiracy.
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`...-u-.
`
`an...-
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`15.
`
`Though the public-facing Megauploadcom website itself does not allow searches,
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`it does list its “Top 100 files”, which includes motion picture trailers and software trials that are
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`freely available on the Internet. The Top 100 list, however, does not actually portray the most
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`popular downloads on , which makes the website appear more legitimate and
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`hides the popular copyright-infiinging content that drives its revenue.
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`16.
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`If a user uploads a video file to Megaupload.com, the user can utilize the provided
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`URL link to redirect others to another Mega Conspiracy-controlled website, Megavideo.com,
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`where they can view the file using a “Flash” video player. 'Altematively, a user who hosts a
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`personal or commercial website can embed the Megavideo.com player into their own website to
`display the video file (and provide advertising content from the Mega Conspiracy).
`C
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`Megavideo.com has been estimated to be as popular as the 52nd most fiequently visited website
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`on the entire Internet.
`
`17..
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`A non-premium user is limited to watching 72 minutes of any given video on
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`Megavideo.com' at a time, which, since nearly all commercial motion pictures exceed that length,
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`provides a significant incentive for users who are seeking infringing copies of motion pictures to
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`pay the Mega Conspiracy a fee for premium access. Some premium users are, therefore, paying
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`the Mega Conspiracy directly for access to infringing copiesof copyrighted works.
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`18.
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`Before any video can be viewed on Megavideo.com, the user must view an
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`advertisement. Originally, the Mega Conspiracy had contracted with companies such as
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`adBrite, Inc., Google AdSense, and PartyGarning plc for advertising. Currently, the
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`Conspiracy’s own advertising website, Megaclick.com, is used to set up advertising
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`campaigns on all the Mega Sites. The high traffic volume on the Conspiracy websites allows
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`the Conspiracy to charge advertisers up-front and at a higher rate than would be achieved by
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`the percentage-per-click methodology used by other popular Internet advertising companies.
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`The popularity of the infringing content on the Mega Sites has generated more than $25 million
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`in online advertising revenues for the Conspiracy.
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`19.
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`Like Megaupload.com, Megavideo.com conceals many of the infringing copies of
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`popular copyrighted videos that are available on and distributed by the site and the associated
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`service. Megavideocom does purport to provide both browse and search functions, but any
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`user’s search on Megavideo.com for a full length copyrighted video (which can be downloaded
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`from a Mega Conspiracy-controlled server somewhere in the world) will not produce any results.
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`Similarly, browsing the front page of Megavideo.com does not show any obviously infringing
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`copies of any copyrighted works; instead, the page contains videos of news stories, user-
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`generated videos, and general Internet videos in a manner substantially similar to Youtube.com.2
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`Browsing the most-viewed videos in the Entertainment category on Megavideo.com,
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`however, has at times revealed a number of infringing copies of copyrighted works that are
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`available from Mega Conspiracy-controlled servers and are amongst the most viewed materials
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`being offered.
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`20.
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`Members of the Conspiracy have publicly stated that they operate the Mega Sites
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`in compliance with the notice and takedown provisions of the Digital Millennium Copyright
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`Act (“DMCA”), codified at Title 17, United States Code, Section 512, despite the fact that they
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`are violating its provisions. Internet providers gain a safe harbor under the DMCA from civil
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`copyright infringement suits in the United States if they meet certain criteria. The members of
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`Mega Conspiracy do not meet these criteria3 because they are willfully infiinging copyrights
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`themselves on these systems; have actual knowledge that the materials on their systems are
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`2 Members of the Mega Conspiracy purposefully copied content directly from Youtube.com in
`order to populate Megavideo.com’s content servers.
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`3 Furthermore, the safe harbor requires that an eligible provider have an agent designated with
`the U.S. Copyright Office to receive infringement notices; despite having millions of users in the
`United States since at least the beginning of the Conspiracy, the Conspiracy did not designate
`such an agent until October 15, 2009, years after Megaupload.com and many of its associated
`sites had been operating and the DMCA had gone into effect.
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`9
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`infringing (or alternatively know facts or circumstances that would make infiinging material
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`apparent); receive a financial benefit directly attributable to copyright-infringing activity where
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`the provider can control that activity; and have not removed, or disabled access to, known
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`copyright infringing material from servers they control.
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`21.
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`Members of the Mega Conspiracy negotiated the use of an “Abuse Tool” with
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`some major U.S. copyright holders to purportedly remove copyright-infringing material from
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`Mega Conspiracy-controlled servers. The Abuse Tool allowed copyright holders to enter
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`specific URL links to copyright infringing content of which they were aware, and they were
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`told by the Conspiracy that the Mega Conspiracy’s systems would then remove, or disable
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`access to, the material from computer servers the Conspiracy controls. The Mega Conspiracy’s
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`Abuse Tool did not actually function as a DMCA compliance tool as the copyright owners were
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`led to believe.
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`22.
`
`When a file is being uploaded to Megauploadcom, the Conspiracy’s automated
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`system calculates a unique identifier for the file (called a “MD5 hash”) that is generated using a
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`mathematical algorithm. If, after the MD5 hash calculation, the system determines that the
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`uploading file already exists on a server controlled by the Mega Conspiracy, Megauploadcom
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`does not reproduce a second copy of the file on that server. Instead, the system provides a new
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`and unique URL link to the new user that is pointed to the original file already present on the
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`server. If there is more than one URL link to a file, then any attempt by the copyright holder to
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`tenninate access to the file using the Abuse Tool or other DMCA takedown request will fail
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`because the additional access links will continue to be available.
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`23.
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`The infringing copy of the copyrighted work, therefore, remains on the
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`Conspiracy’s systems (and accessible to at least one member of the public) as long as a single
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`10
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`link remains unknown to the copyright holder. The Conspiracy’s internal reference database
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`tracks the links that have been generated by the system, but duplicative links to infringing
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`materials are neither disclosed to copyright holders, nor are they automatically deleted when a
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`copyright holder either uses the Abuse Tool or makes a standard DMCA copyright infringement
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`takedown request. During the course ofthe Conspiracy, the Mega Conspiracy has received
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`many millions of requests (through the Abuse Tool and otherwise) to remove infringing copies
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`of copyrighted works and yet the Conspiracy has, at best, only deleted the particular URL of
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`which the copyright holder complained, and purposefully left the actual infringing copy of the
`copyrighted work on theMega Conspiracy-controlled server and any other access links
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`completely intact.
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`24.
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`In addition to copyrighted files, other types of illicit content have been uploaded
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`onto the Megauploadcom servers, including child pornography and terrorism propaganda
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`videos. Members of the Conspiracy have indicated to each other that they can automatically
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`identify and delete such materials on all of their servers by calculating MD5 hash values of
`known child pornography or other illicit content, searching the system for these values, and
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`eliminating them; in fact, such files with matching hash values have been deleted from the Mega
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`Conspiracy’s servers. Members of the Mega Conspiracy have failed to implement a similar
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`program to actually delete or terminate access to copyright infringing content.
`
`25.
`
`On or about June 24, 2010, members of the Mega Conspiracy were informed,
`
`pursuant to a criminal search warrant from the U.S. District Court for the Eastern District of
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`Virginia, that thirty-nine infringing copies of copyrighted motion pictures were present on their
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`leased servers at Carpathia Hosting, a hosting company headquartered in the Eastern District of
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`Virginia. A member of the Mega Conspiracy informed several of his co—conspirators at that time
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`11
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`that he located the named files using internal searches of their systems. As of November 18,
`2011, more than a year later,ythirty-six ofthe thirty-nine infringing motion pictures were still
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`being stored on the servers controlled by the Mega Conspiracy.
`
`26.
`
`At all times relevant to this Indictment, the defendants and other members of the
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`Mega Conspiracy knew that they did not have license, permission, authorization, or other
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`authority from owners of hundreds of thousands of copyrighted works to reproduce and
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`distribute those works, including making them available over the Internet. Members of the Mega
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`Conspiracy are aware of the way that their sites are actually used by others; have themselves
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`used the systems to upload, as well as reproduce and distribute, infringing copies of copyrighted
`content; and are aware that they have financially benefitted directly from the infringement of
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`copyrighted works that they are in a position to control.
`
`27.
`
`In addition to Megauploadcom, Megavideo.com, and Megaclick.com, the other
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`websites created and domains owned by the Mega Conspiracy include: Megawor1d.com;
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`Megalive.com; Megapix.com; Megacar.com; Megafimdcom; Megakey.com; Megaking.com;
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`Megahelp.com; Megagogocom; Megamoviecom; Megaporn.com; Megabackupcom;
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`Megapaycom; Megabox.com; and Megabestcom. Several of these additional sites have also
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`hosted infringing copies of copyrighted works. The websites and services, as well as the
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`domains themselves, have been facilitated and promoted by illicit proceeds from the operations
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`of Megauploadcom, Megavideo.com, and Megaclick.com.
`
`28.
`
`' In addition to MEGAUPLOAD LIMITED, VESTOR LIMITED, Megamedia
`
`Limited, Megavideo Limited, Megarotic Limited, Megapix Limited, Kingdom International
`
`Ventures Limited, Netplus International Limited LLC, Basemax International Limited, and
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`Mindpoint International Limited LLC, the following companies and entities have facilitated and
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`12
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`promoted the Mega Conspiracy’s operations: Kimvestor Limited; Trendax Limited; Monkey
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`Limited; Kimpire Limited; A Limited; N1 Limited; RNK Media Company; Megapay Limited;
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`Megamusic Limited; Finn Batato Kommunikation; Mega Services Europe Ltd.; Megateam
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`Limited; Megastuff Limited; Megacard Inc.; Megasite Inc.; Seventures Limited; SECtravel; and
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`Bramos B.V. In addition, the creation and operation of these companies and entities has been
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`facilitated and promotedlby illicit proceeds from the operations of the Mega Conspiracy.
`
`THE DEFENDANTS
`
`29.
`
`KIM DOTCOM, who has also been known as KIM SCHMITZ and KIM TIM
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`JIM VESTOR, is a resident of both Hong Kong and New Zealand, and a dual citizen of Finland
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`and Germany. DOTCOM is the founder of MEGAUPLOAD LIMITED (“MUL”) and
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`Megamedia Limited (“MMG”). Until on or about August 14, 2011, DOTCOM was the Chief
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`Executive Officer for MUL, and he is currently MUL’s Chief Innovation Officer. As the head of
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`the Mega Conspiracy, DOTCOM employs more than 30 people residing in approximately nine
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`countries. From the onset of the Mega Conspiracy through to the present, DOTCOM has
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`supervised the development of the websites and companies utilized in the Mega Conspiracy.
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`DOTCOM directed the creation of the network infrastructure behind the Mega Conspiracy
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`websites, negotiated contracts with Internet Service Providers and advertisers, administered the
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`domain names used by the Mega Conspiracy, and exercises ultimate control over all decisions in
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`the Mega Conspiracy. DOTCOM has arranged millions of dollars in payments for the computer
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`servers utilized by the MUL and MMG properties around the world, and has also distributed
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`proceeds of the Conspiracy to his co-conspirators. DOTCOM-is the director and sole
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`shareholder of both VESTOR LIMITED and Kingdom International Ventures Limited, which
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`have been used to hold his ownership interests in MUL- and MMG- related properties; for
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`13
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`Case 1:12-cr-00003-LO Document 1 Filed 01/05/12 Page 14 of 72 PageID# 14
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`example, DOTCOM owns approximately 68% of Megauploadcom, Megaclick.com, and
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`Megapixcom, and 100% of the registered companies behind Megavideo.com, Megapomcom,
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`and Megapaycom, through VESTOR LIMITED. DOTCOM has personally distributed a link to
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`a copy of a copyrighted work on, and has received at least one infringing copy of a copyrighted
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`work from, the Mega Sites. Additionally, on numerous instances, DOTCOM received DMCA
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`copyright infringement takedown notices from third-party companies. In calendar year 2010
`alone, DOTCOM received more than $42 million from the Mega Conspiracy.
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`30.
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`MEGAUPLOAD LIMITED is the registered owner of Megauploadeom, the
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`primary website operated by the Mega Conspiracy, and Megac1ick.com, a site that offers
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`advertising associated with Mega Conspiracy properties. MUL is a registered company in Hong
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`Kong with a registry number of 0835149. MUL has a number of bank accounts in Hong Kong
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`that have been used to facilitate the operations of the Mega Conspiracy. DOTCOM, in_ addition
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`to holding the title of Chief Executive Ofiicer of MUL until as recently as August 2011, owns,
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`through VESTOR LIMITED, approximately 68% of the shares of MUL; MATHIAS
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`ORTMANN, through Netplus International Limited LLC, owns an additional 25%; JULIUS
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`CEENCKO, through Basemax International Limited, owns 2.5%; BRAM VAN DER KOLK
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`utilizes Mindpoint International Limited LLC to hold 2.5% of the shares of MUL;
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`SVEN ECHTERNACH owns approximately 1%; and the remaining 1% is owned by an investor
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`in Hong Kong.
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`31.
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`VESTOR LIMITED is a registered company in Hong Kong with a registry
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`number of 0994358. VESTOR LIMITED has a DBS Bank account in Hong Kong that has been
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`used to facilitate the operations of the Mega Conspiracy. DOTCOM (under the alias KIM TIM
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`JIM VESTOR) is the sole director and shareholder of VESTOR LIMITED, and thus is
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`

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`Case 1:12-cr-00003-LO Document 1 Filed 01/05/12 Page 15 of 72 PageID# 15
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`effectively the sole director and 68% owner of MUL, Megauploadcom, Megaclick.com, and
`Megapix.com. DOTCOM is the sole director of, and VI-ESTOR LIMITED is the sole
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`shareholder of, MMG, which is the parent company and sole shareholder of the following
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`companies: Megavideo Limited (which is the registered owner of Megavideo.com),
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`Megarotic Limited (which is the registered owner of Megapomcom), and Megapay Limited.
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`VESTOR LIMITED is also the sole owner of Megaworld.com.
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`32.
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`FINN BATATO is both a citizen and resident of Gennany. BATATO is the
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`Chief Marketing and Sales Officer for Megaupload.com and other Mega Conspiracy properties.
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`Specifically, BATATO is in charge of selling advertising space, primarily through
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`Megaclick.com. BATATO supervises a team of approximately ten sales people around the
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`world. The purpose of the sales team is to increase the advertising revenue in localized markets
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`by targeting certain advertisements in certain countries. BATATO handles advertising
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`customers on the Megac1ick.com website and approves advertising campaigns for
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`Megaupload.com, Megavideo.com, and Megapomcom. BATATO has personally distributed a
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`link to at least one infringing copy of a copyrighted work to a Mega Site. Additionally, on
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`numerous instances, BATATO received DMCA copyright infringement takedown notices from
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`third-party companies. In calendar year 2010, BATATO received more than $400,000 from the
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`Mega Conspiracy.
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`33.
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`JULIUS BENCKO is both a citizen and resident of Slovakia. BENCKO is the
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`Graphic Director for MUL and MMG. BENCKO, as the director and sole shareholder of
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`Basemax International Limited, is effectively a 2.5% shareholder of MUL. From the onset of the
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`Conspiracy through to the present, BENCKO has been the lead graphic designer of the
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`Megauploadcom and other Mega Conspiracy websites. He has designed the Megauploadcom
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`

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`Case 1:12-cr-00003-LO Document 1 Filed 01/05/12 Page 16 of 72 PageID# 16
`Case 1:12—cr—00003—LO Document 1 Filed 01/05/12 Page 16 of 72 Page|D# 16
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`logos, the layouts of advertisement space, and the integration of the Flash video player.
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`BENCKO has requested and received at least one infringing copy of a copyrighted work as part
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`of the Mega Conspiracy. In calendar year 2010, BENCKO received more than $1 million from
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`the Mega Conspiracy.
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`34.
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`SVEN ECHTERNACH is both a citizen and resident of Germany.
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`ECHTERNACH is the Head of Business Development for MMG and MUL. ECHTERNACH is
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`a 1% shareholder in MUL. ECHTERNACH leads the Mega Team company, registered in the
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`Philippines, which is tasked with removing illegal or abusive content from the Mega Conspiracy
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`websites, reviewing advertising campaigns for inappropriate content, and responding to
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`customer support e-mails. Additionally, ECHTERNACH handles the Mega Conspiracy’s
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`relationships with electronic payment processors, accounting firms, and law firms. His activities
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`include traveling and approaching companies for new business ventures andservices.
`Additionally, on numerous instances, ECHTERNACH received DMCA copyright infringement
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`takedown notices from third-party companies. In calendar year 2010, ECHTERNACH received
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`more than $500,000 from the Mega Conspiracy.
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`35.
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`MATHIAS ORTMANN is a citizen of Germany and a resident of both Germany
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`and Hong Kong. ORTMANN is the Chief Technical Officer, co-founder, and a director of
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`‘H
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`MUL. ORTMANN, as the director and sole shareholder of Netplus Inte