21 Jun 2024

Kim Dotcom's Megaupload executives banned from company director roles for five years

12:16 pm on 21 June 2024
Megaupload executives Mathias Ortmann (L) and Bram van der Kolk (R) are seen in court during an extradition hearing in Auckland on September 24, 2015. Internet mogul Kim Dotcom's long-awaited extradition hearing opened in New Zealand September 24 with the flamboyant founder of now-defunct Megaupload confident he can avoid being sent to the United States to face online piracy charges. Dotcom and three others - Mathias Ortmann, Bram van der Kolk and Finn Batato - were arrested on charges of criminal copyright violation back in 2012. AFP PHOTO / Michael Bradley (Photo by MICHAEL BRADLEY / AFP)

Megaupload executives Mathias Ortmann (left) and Bram van der Kolk (right) are seen in court during an extradition hearing in Auckland on 24 September, 2015. Photo: AFP/Michael Bradley

Two former executives of Kim Dotcom's defunct Megaupload file sharing platform have been banned from being company directors for five years.

The pair - Bram van der Kolk and Mathias Ortmann - were jailed last year after being convicted of being part of a criminal group and causing loss by deception, for illegally reproducing and distributing copyrighted works.

The latter conviction triggered a provision within the Companies Act, which prohibited a person convicted of any crime involving dishonesty from being a director or being involved in the management of a company for five years.

Ortmann and van der Kolk were key executives of Megaupload from 2005 until it was shut down in 2012, following a joint case by New Zealand and US authorities.

In 2022, Ortmann and van der Kolk struck a deal to face charges in New Zealand, in return for the US dropping an extradition case against them.

Kim Dotcom continued to fight charges against him.

The Ministry of Business Innovation and Employment's acting national manager, Vanessa Cook, said the ban protected the public.

"It's important to note that anyone that is convicted of a dishonesty offence, such as theft or fraud, is automatically disqualified from being company director for five years from the date of their conviction," Cook said.

"As the former executives were part of global criminal enterprise that cost copyright holders billions of dollars, it was imperative for us to ensure they are prohibited from managing or being director of any company," Cook said.

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