New Zealand judge releases two on bail in U.S. case against alleged Internet pirates

WELLINGTON, Jan. 26 (Xinhua) -- Two European men charged with the German millionaire at the center of a massive U.S.-led Internet piracy prosecution have been freed on bail after a hearing in a New Zealand court Thursday.

Dutchman Bram van der Kolk and German national Finn Batato were granted bail at Auckland's north Shore District Court, Radio New Zealand reported.

Their release came the day after the founder of file-sharing website Megaupload.com, Kim Dotcom, was denied bail and remanded in custody while the U.S. authorities proceed with their case for extradition.

A decision on bail for a fourth man, Mathias Ortmann, was adjourned until Friday.

New Zealand Police arrested the four men in raids across Auckland Friday at the request of the United States Justice Department and the Federal Bureau of Investigation (FBI).

They are accused of money laundering, racketeering and copyright piracy after the company was indicted in a U.S. federal court in Alexandria, Virginia, on Jan. 19.

The judge on Wednesday denied bail to Dotcom, saying there was a real and significant risk he would flee New Zealand if released from custody.

He said he was sure Dotcom had the financial resources to obtain forged identity or travel documents, and to arrange transport out of the country by covert means.

Dotcom was remanded in custody until Feb. 22 when a date will be set for an extradition hearing.

The FBI accuses Megaupload of pirating films and other content, costing copyright holders more than 500 million U.S. dollars in lost revenue.

A statement from the FBI Friday said the U.S. Justice Department indictment alleged that a criminal enterprise was led by Dotcom, 38, originally named Kim Schmitz and also known as Kim Tim Jim Vestor, a resident of both Hong Kong and New Zealand.

It said Dotcom founded Megaupload Limited and was the director and sole shareholder of Vestor Limited, which had been used to hold his ownership interests in the Mega-affiliated sites.

New Zealand Police arrested Dotcom along with the website's chief marketing officer Batato, 38, and chief technical officer and co-founder Ortmann, 40, and van der Kolk, 29, who is also a New Zealand resident.

The FBI statement said Ortmann was a resident of both Germany and Hong Kong. [Chinese version is available on Xinhuanet.com]