I've caught some of this story here and there mostly because a member of the family loves to download stuff and was upset because his Megaupload account was taken off. Secretly I think it was well done by the authorities to shut him down and others who make money off other people's intellectual property.
This guy really gets around. I looked him up on Wikipedia and his real name is Kim Schmitz and he is from Germany. He changed his name to Dotcom as recently as 2005.
iiNet verdict good news for Kim Dotcom
Kim Dotcom may be able to breathe a little easier following a landmark Australian High Court ruling that found internet provider iiNet was not responsible for illegal file sharing by its users. Ref. Source 5
Key accepts Banks' denial over Dotcom's donation
Under fire ACT MP John Banks is staking his word against that of his German billionaire donor Kim Dotcom as he fights to hold on to his ministerial warrant. Ref. Source 6