Dotcom debts

February 19th, 2014 at 12:10 pm by David Farrar

The Herald reports:

is facing calls to pay $500,000 in debts by creditors who have watched him appear to embrace again an opulent lifestyle.

Seems to have enough money to fly to Huka Falls, to try and throw massively expensive free parties, to fund his own political party and to advertise himself on the back of half the buses in town. But not enough to pay people he legally owes money to.

Creditors’ frustrations have soared in recent months amid a high-profile marketing campaign for his Good Times album, helicopter trips to the Rhythm and Vines music festival and a weekend at Huka Lodge.

A spreadsheet on the court file dated January 23, 2012 stated there were 80 creditors owed between $69 and $133,916.

Documents lodged with the High Court at Auckland during 2012 show $634,000 of debt was declared by Dotcom’s lawyers, who tried to get access to money seized in the raid to pay the debts. Opposition by police kept the money tied up, with the courts accepting in August 2012 that there was no “legal ability” to release Dotcom’s restrained funds to pay debts of Megastuff, now called called RSV Holdings.

Certainly some of his funds are frozen, but as noted above he seems to have no problem paying for extravagances.

Creditors spoken to by the Herald have pointed to apparent recent indulgences by Dotcom as raising frustration with bills for work at the mansion still unpaid.

West City Electrical’s Neil Stratful said he was among many creditors who had not been paid.

So these bills are not to do with Megaupload. They are personal bills.

She said it was galling to hear Dotcom declaring he would like to support Team New Zealand when his company still owed $5000.

“When we heard that bold claim, we joked that we thought our name should be on the side of the boat. Because it’s our money.”

Dotcom had enough money to pay Martin Bradbury $8,000 a month for political advice – but not enough money to pay his electrician.

Paul Davis supplied uniforms to the staff at the Dotcom mansion and is owed $1138. The offer of around 10 per cent of the total owed was “completely unacceptable” given Dotcom at one stage was granted a personal monthly allowances from seized funds of $20,000.

“I understand Dotcom cannot be held legally liable for this, there’s nothing we can do about it,” said Mr Davis. But he said Dotcom had a court-ordered allowance of $20,000 a month from seized funds – money he believed could be used to clear debts.

“We were a relatively small creditor but it irritates me every time I see him on the back of a bus, or on the news, and people saying what a wonderful guy he is.”

I’m sure it is. A good question to ask Dotcom is whether he is using the $20,000 a month to pay any of his debts at all?

Like many of the other creditors, he said he was a small business owner who had borne the brunt of the economic downturn by making personal financial sacrifices in order to keep their employees in a job.

“We’ve been out of pocket for two years now. Every time he comes on TV, he gets me going.”

Good this story has finally been run. One could ask why so long.

UPDATE: On a related issue today the Court of Appeal has ruled the search warrants used in the raid were valid, over-ruling the High Court. They ave said some minor defects did not invalidate them.

 

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35 Responses to “Dotcom debts”

  1. alex Masterley (1,498 comments) says:

    Depends who is incurring these bills and when.

    If he is incurring the bills personally then he will most likely be paying them as otherwise he would be sued.

    if it is one of his companies including those whose assets were frozen by the court then unless he has guaranteed them or similar he is not personally liable, not matter how much everyone would like him to be.

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  2. CJPhoto (218 comments) says:

    You do have to wonder why it has taken this long for the story to be run.

    However, technically they are not personal debts as he was incurring them through a company. A bit dodgy? maybe but the contractors should have got a personal guarantee. Given the nature of the way his lost his income, no chance re charges of trading while insolvent etc.

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  3. Linda Reid (407 comments) says:

    well, if he’s a director of a company that is trading while insolvent, then technically he could be liable.

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  4. wreck1080 (3,799 comments) says:

    Dotcom is dodgy…. can’t they just revoke his residency and boot him out?

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  5. Roflcopter (446 comments) says:

    Just seen on Stuff…..

    BREAKING NEWS
    Court of Appeal rules raids on Kim Dotcom were legal … More soon

    later Mr German Dude

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  6. secondcumming (92 comments) says:

    Bye Kim…….and give our regards to BUBBA

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  7. flash2846 (219 comments) says:

    So I expect we will see the greens and labour going into bat for the little guy who has lost hard earned money. Not likely!

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  8. thedavincimode (6,589 comments) says:

    Just wondering if I should order the orange parachutes to get the bespoke overalls tailored for his visit to the US. Is that one down and one to go?

    Liebour and the melons better bank their cheques quick given this news and his creditor problems.

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  9. Sector 7g (237 comments) says:

    I love how Martin Bradbury is being payed $8000 a month. Ha ha ha ha. Amazing. No shame at all.

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  10. queenstfarmer (754 comments) says:

    What will Russell Norman’s pretext for blocking Dotcom’s extradition be now?

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  11. thedavincimode (6,589 comments) says:

    Same as before. Money. But therein lies a bit of a problem perhaps.

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  12. Rick Rowling (823 comments) says:

    Wait, so is he living off stuff that other people paid for and he didn’t?

    That would explain why he supports the parties on the left…

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  13. jp_1983 (200 comments) says:

    queenstfarmer (653 comments) says:
    February 19th, 2014 at 12:53 pm
    What will Russell Norman’s pretext for blocking Dotcom’s extradition be now?

    He can get Russell a new flag

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  14. smttc (711 comments) says:

    Russell Norman will be seething with rage today.

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  15. davidp (3,556 comments) says:

    Dotcom is a recidivist non-payer of his staff and contractors. He was doing it in Germany, years ago.

    I’m surprised that Labour and the Greens have been falling over themselves to support Dotcom when he is the very definition of a dodgy employer. Actually… now that I think about it, I’m not surprised at all.

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  16. thedavincimode (6,589 comments) says:

    I’m surprised that Labour and the Greens …

    Really?

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  17. Akld Commercial Lawyer (165 comments) says:

    Mostly as a thought bubble, the Commerce Minister is trying to implement two new measures that will have the effect of criminalising certain ‘egregious’ breaches of directors’ duties. They are contained in the Companies and Limited Partnerships Amendment Bill which is working its way through Parliament.

    In its present form, it would be an offence for a company director to (a) agree to, or cause or allow, the business of the company to be carried on in a manner that causes serious loss to 1 or more of the company’s creditors; and (b) the director knows that a serious loss will be suffered by 1 or more of the company’s creditors as a result of the business being carried on in that manner (whether or not the director knows the full extent of the loss or the identity of the creditors concerned); and (c) 1 or more of the creditors that suffered the serious loss did not give their prior consent to carrying on the business in that manner.

    The penalty band for such an offence includes up to 5 years’ jail time.

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  18. RRM (9,638 comments) says:

    So the way to get rich is to just not pay your contractors, knowing that they are smaller than you and can’t afford to take legal action?

    Kim Dotcom could be a high profile Wellington property developer…

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  19. ShawnLH (4,419 comments) says:

    “Dotcom had enough money to pay Martin Bradbury $8,000 a month for political advice”

    Hang on, is this “Bomber” Bradbury? The far left blogger? Helping out a rich, foreign capitalist thief?

    Wow. No shame at all.

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  20. igm (1,413 comments) says:

    Come on PM, this guy is a charlatan, he does not belong here, he has a deportation order awaiting action, he owes money, has interfered in our political and legal systems, and treats the whole country as a joke. Get him to eff out of here NOW!
    PS: Put Lecher Len on the same plane . . . he would not be missed, apart from a few losers in Labour, as per Slobcom.

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  21. kowtow (7,922 comments) says:

    Will John (Alliance) Campbell do a show lining up all the people the fat kraut owes money,like the time he lined up all the good local folk Slob Dot Com was employing back in the day…….

    I won’t be holding my breath.

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  22. Muzza M (291 comments) says:

    Come on guys, lighten up on the obese German. His Filipino missus will be costing him a fortune. I know from personal experience with my ex.

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  23. wikiriwhis business (3,883 comments) says:

    ‘Dotcom is dodgy…. can’t they just revoke his residency and boot him out?”

    Pffff….dodgy is nothing. your post is dodgy

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  24. igm (1,413 comments) says:

    kowtow: This slimy obese slob will be calling Campbell, probably claiming injustice, and Campbell will treat him the same as he did Lecher Len. This type of a/hole that needs culling from media.

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  25. labrator (1,846 comments) says:

    With that sort of payment record it’s about time he started a union. Maybe it could be called the Digital Union and if you use the internet you pay him a monthly stipend from your internet account and he’ll make sure you get what you want.

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  26. igm (1,413 comments) says:

    Appears this obese criminal is going to appeal our High Court’s decision. He is not a citizen, he only has residency, no longer any money to pay his staff, so where does the money come from to fund this appeal . . . it better not be legal aid. This slug has tried the patience of every decent, law abiding Kiwi, only to be feted by losers of the left, and now they will have to be his keepers . . . what a hoot! Put Lecher Len and Dotcom in a substandard waka and cast them off from Cape Reinga, maybe that will solve Auckland’s problems.

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  27. ross69 (3,652 comments) says:

    This slug has tried the patience of every decent, law abiding Kiwi

    There surely aren’t many of them on here. :)

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  28. Muzza M (291 comments) says:

    This kind of reminds me of Ahmed Zaoui. So KDC if you do not want to be placed in the same league as this Algerian wart on the arsehole of NZ and who should have been deported, pay every New Zealander you owe money now!!!

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  29. igm (1,413 comments) says:

    ross69: At least the majority on here support themselves and their families, unlike you.

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  30. backster (2,122 comments) says:

    I wonder if he has paid his electricity bill.

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  31. Jinky (181 comments) says:

    He’s just like every other white collar crim. Spends up large, then goes broke owing a lot of honest hard working folk. Declared bankrupt or puts the company in the hands of a reciever and legally walks off with the cash.

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  32. Jinky (181 comments) says:

    No surprise that Winston has been visiting. Follow the money!!

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  33. Azeraph (603 comments) says:

    We should get rid of the rest immigration has allowed to quietly slip in with those big accounts. He’s not the only one. Has he spent any hard earned taxpayer money? So everyone feels they have a stake in his business. I know a lot of kiwi’s who operate like this, in fact a lot of companies regularly go over their terms. It’s business and the risk you take when you don’t know the person you’re dealing with. Slapstick man, very cheap.

    People need to get off their high commodes and go for a walk or try.

    Remember Blue chip?

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  34. Adolf Fiinkensein (2,830 comments) says:

    With all the carry on in the courts, isn’t it time everybody just shut up about this fat German klod?

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  35. OneTrack (2,794 comments) says:

    “Good this story has finally been run. One could ask why so long.”

    Because dotcom gives people free access to ripped off intellectual property, gives free fireworks displays and free icecreams. He’s the hero of the left, and they protect their own.

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