Transcripts For KPIX 60 Minutes 20140707 : comparemela.com

KPIX 60 Minutes July 7, 2014

In his new book, he questions history, business, sports, even the wisdom of sending your kid to an ivy league school. If harvard is 60,000, and university of toronto, where i went to school, is maybe 6,000, so youre really telling me that education is ten times better at harvard than it is at university of toronto . That seems ridiculous to me. Pelley wow. That is astounding. Ho, look at that. Whoa. Yeah pelley oh, my god. Incredible. What a sight. Youre looking right into the crater. Pelley there are 1,500 active volcanoes, and tonight, we want to tell you about three one that caused the most recent mass disruption, another thats the biggest threat to a major city, and a third, in the united states, that could wreak havoc all around the world. Im steve kroft. Im leslie stahl. Im morley safer. Im bob simon. Im anderson cooper. Im scott pelley. Those stories tonight on 60 minutes. Hey. Clustered around power outlets, near the recycling bins. Did you jiggle it . Stained carpeting. 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Dont start humira if you have an infection. Talk to your doctor and visit humira. Com this is humira at work simon hollywoods always had its bad guys think the joker or darth vader. But their biggest villain is a man who calls himself kim dotcom. You wont see him on the big screen but, until recently, he ran a service that made it possible for you to see almost any movie you wanted to for next to nothing. Before his web site, megaupload, was shut down, federal Authorities Say it allowed people to access not only copyrighted films, but copyrighted music, books and video games. They claim he cost the Entertainment Industry more than 500 million in lost revenue. Hollywood considered him one of the worst pirates ever. As we reported last january, the u. S. Has filed an indictment against kim dotcom for Copyright Infringement, racketeering and Money Laundering, and has requested his extradition from new zealand, where he lives. That was two and a half years ago, but kim dotcom hasnt gone anywhere. Kim dotcom was once master of the internet, but these days, his domain is 60 acres of rolling hillside near auckland, new zealand. Nice place. The only problem is this larger thanlife character cant leave new zealand. When hes not touring his grounds on a soupedup golf cart, kim is fighting the Entertainment Industry and extradition to the united states. He is hollywoods supervillain, which is, in many ways, a role he always wanted to play. Kim dotcom i was inspired by the james bond movies, you know, where, you know, some characters had private islands and super tankers converted into yachts and space stations and underwater homes. So, you know, i. I got inspired by that. Simon but youre not playing james bond, youre playing dr. No. Dotcom laughs thats what everybody says. Simon kim dotcom changed his name from kim schmitz in 2005 when he started a filesharing service. It was called megaupload, and as this ad shows, it boasted the endorsement of celebrities like kanye west, will. I. Am and kim kardashian. I love megaupload. Simon heres how it worked. If you wanted to send a friend a file that was too large to email a wedding video, for example you could just upload it onto megauploads servers and your friends could click a link to download it. It was a virtual warehouse where people stored and shared digital files. By selling advertisements and premium subscriptions, megaupload brought in an estimated 175 million. It became one of the most frequented sites on the internet. How did it get so popular and profitable . According to federal authorities, by also allowing users to illegally share the hottest new movies, or hit songs, or tv programs, including some cbs shows. Shawn henry megaupload knowingly created and facilitated the distribution of stolen property. Simon shawn henry is former executive assistant director of the fbi. He was responsible for the megaupload investigation. Henry no different than if somebody has a warehouse where stolen property is being dropped off. If you created the environment that facilitated it, and you encouraged it, and you incentivized people by paying them to drop off stolen property, i think that you are complicit. Simon in its indictment, the Justice Department calls megaupload a mega conspiracy, a Worldwide Criminal Organization whose members engaged in criminal Copyright Infringement and Money Laundering on a massive scale. But kim argues that he is not legally responsible for what users chose to do on his site. Dotcom am i the one whos at fault if users upload that kind of stuff and up. Reupload it again . Do i have to go to jail for that . Because i didnt do it. I didnt upload these things to megaupload. Simon the indictment called you a pirate. They werent just charging you with Copyright Infringement. It was a whole list of crimes racketeering, Money Laundering. Where do these charges come from . Dotcom well, they are all derived from the Copyright Infringement allegation. And the racketeering was added on top because, in new zealand, you cannot be extradited for Copyright Infringement. Simon yet federal authorities allege kims whole business was built on piracy, offering Cash Incentives to users who uploaded popular content like movies and music. That Copyright Infringement allegedly cost the Entertainment Industry more than 500 million in lost revenue. Kim was getting rich, they say, but every dollar he made was a dollar taken away from the people who actually produced the material. Eriq gardner this was the number one pirate, in their eyes. Simon eriq gardner is a Senior Editor at the Hollywood Reporter whos covered the megaupload case extensively. Gardner this was a guy who was fostering infringements on a massive scale. Simon any idea how many users there were . Gardner there were reported to be about 50 million users on a daily basis. Simon to me, i mean, 50 million sounds virtually incomprehensible. Gardner to the Entertainment Industry, those are 50 Million People who are not paying 12 for a dvd, those are people who are not paying 15 for a movie ticket. Simon in 2010, the Motion Picture association of america, which represents the film industry, referred the case to the Justice Department. The u. S. Then enlisted the help of the new zealand government, and on the morning of january 20, 2012, after months of planning, their top antiterror unit took action. As you can see in these videos taken that day, they descended on kims compound as if it were an al qaeda stronghold. They were working closely with officials from the u. S. Department of justice and the fbi, who were in auckland helping oversee the raid. It was a scene straight out of a summer blockbuster. Wayne tempero there was a Serious Group of individuals here. Simon Wayne Tempero was kims head of security at the time. The morning of the raid, he found himself facing down two officers with automatic weapons. What kind of weapons . Tempero mp5s. Everybody had sidearms on. There were shotguns. I saw people Walking Around with sledgehammers, everything. Simon tempero was tied up and held in the mansions courtyard. The rest of kims staff, his three children and pregnant wife were rounded up, as well. Tempero so this is the staircase up to the bosss private area of the house. Simon kim had been lying on his bed working at his computer when he heard the ruckus outside. Tempero he walked over here and grabbed this. This is a panic button. He pressed that. Simon and that goes through to you . Tempero straight to me, a text message to me. Simon police were working their sledgehammers, but couldnt find kim anywhere. Tempero and they were. Theyd done this damage here thinking that he was in the dumb waiter. Simon tempero says he was forced to show them where kim was. Tempero its a closet. But if you push the back of the door. Okay, so this is the red room as you can see, only because of the color of the carpet, nothing sinister. Simon the police found kim sitting behind a pillar, not far from a locker that stored a shotgun. To this day, kim believes the operation was excessive. Dotcom this is an overreach of epic proportions. Simon but there was a gun in the room . Dotcom yeah, there was a gun in the room. But, you know, i mean, you in the u. S. , everyone has a gun in the room, right . Thats not the reason why you go and invade the home with Anti Terrorist forces. Simon the police werent finished. They seized his computers, carried away kims fleet of luxury cars, froze his assets, and pulled the plug on megaupload. Kim dotcom was arrested, along with three of his associates, and thrown in jail for a month. It was a Global Operation that sent shockwaves across the internet. Was the megaupload bust designed to send a message . Henry i. I think that the judicial process is about deterrence. Its about people understanding that there are consequences for crime. This. We didnt. The fbi didnt investigate this case specifically to send a message, but certainly, thats a result. Simon kim had always skated on the edge of legality. Before his foray into the entertainment business, he was a hacker and claims to have broken into computers at nasa and the pentagon. He turned those skills into a successful business, advising major corporations on how to protect themselves from hackers just like him. Dotcom im good at this whole business game. Simon youre just a plain businessman. Dotcom im a businessman, yeah. Simon a plain businessman who, when he was a teenager, hacked into the pentagon and nasa . Come on. Dotcom well, i. I have to say that i love being a businessman much more than being a hacker. Simon kim has had his hands in many businesses; some of them met with disapproval. In the 90s, he was arrested for using computers to hack telephone lines and credit card numbers. Then, he pled guilty to insider trading; later, was found guilty of embezzlement. White collar crimes. But in videos he circulated online, he loved portraying himself as a cartoonish action hero. He used the internet the way hollywoods giants have always used the big screen, creating an extravagant persona. There he was on yachts or private planes, and here he is with his wife showing off one of his luxury cars. Check out the license plate. His narcissism had no limits and he was never far from a photographer. When he finally settled down, it was in this modernday xanadu, a mansion only he, or orson welles, could have imagined. Were all these extravagant things here when you bought it . Dotcom what do you mean . Simon i mean, thats quite a chandelier. Dotcom oh, no, i bought that. I like black and white as you can see, thats a theme throughout the house. Simon when kim moved to new zealand from hong kong in 2010, megaupload was a worldwide sensation. By the time you came here, you were already a very wealthy man. Dotcom yeah, i made good money. Simon right. Can you say how much at the time . What were you worth when you left hong kong . Dotcom well, we just did a valuation for the company because we wanted to do an i. P. O. , and it was around 2. 5 billion. Simon two and a half billion . Dotcom yes. Simon the government says this empire was built, quite simply, on stolen goods. But kim insists he complied with the law, went to Great Lengths to remove infringing material from the site. So why does he think the governments going after him . Dotcom because of my flamboyant lifestyle, because of me being german. The way i am, im the easiest person to sell as a villain. Simon you really think that thats what did it . You dont think there was anything about megaupload that led them to say and think, this guys gone too far . Dotcom im the perfect target. And thats why they picked megaupload. Simon kim dotcom says hes convinced that he was chosen because he looks like a villain. Henry people sometimes tell me i look like a villain, right . People arent. Arent investigated because of the way they look, or the type of car they drive. Theyre investigated because theres an allegation that theyre involved in illegal activity, that theyre committing a crime. Simon but if federal authorities hoped kim would be in u. S. Custody by now, they are surely disappointed. There has been legal wrangling in new zealand courts over the warrants police used in their raid. And officials there have admitted to illegally eavesdropping on kims communications. Two and a half years after his arrest, the battle over kim dotcoms extradition continues. Dotcom i was illegally spied on by the g. C. S. B. Simon megaupload might not exist anymore, but kim seized on the controversy to reinvent himself. Always a master of marketing, hes become the darling of the media in new zealand and a self styled privacy activist. Hes formed his own political party, and last year, on the anniversary of that raid, he launched a brand new file sharing service. He is, as always, the star of his own movie. But this time, he didnt write the script. Dotcom stop this madness. Lets all be friends. Simon we asked the department of justice, the fbi, and the Motion Picture association of america to talk to us about the case. They all declined. In april, several movie studios and record labels sued kim dotcom for massive Copyright Infringement. Cbs money watch update sponsored by lincoln financial. Calling all chief life officers. Glor good evening. The trial over whether Shelly Sterling had the authority to sell the l. A. Clippers starts tomorrow. Boeing says its still assessing damage after a Train Derailment damaged parts of eight different planes. And dubai says its building the mall of the world, the biggest one ever. Im jeff glor, cbs news. Americans drink over 13 billion gallons of sugary beverages every year. Overconsumption may link to obesity and Heart Disease. Its an epidemic. But we can help change it with a better choice. Drink more water, filtered by brita. Clean, refreshing brita water. Nothing is better. Now enjoy brita filtered water anywhere with on the go bottles. Yall the suns admire themselvesn cin their reflection your eyes are a Weather Report your eyes are so clear that they hide your lies your eyes are the windows on the gods the doors on humanity your eyes are so precious that diamonds are jealous your eyes are so unique that nothing similar ever existed in the universe lenscrafters loves eyes to make Peanut Butter so deliciously creamy. It always makes the home team cheer. Thats why choosy moms and dads choose jif. Ithis is lady. S the home team cheer. Shes a unicorn. And a pegasus. And why is she strapped to the roof of my rav4 . Well, if you have kids. Then you know why. Now the real question. Wheres this thing going in the house . The rav4 toyota. Lets go places. [ male announcer ] hurry in for july fourth savings. Get 15 off all fullsized master forge gas grills at lowes. Cooper everyone loves an underdog, a tale about a little guy who takes on the establishment favorite. But is our understanding of the underdog accurate . Can a disadvantage, a weakness, actually lead to a hidden strength . As we first reported last november, its a question thats been asked ever since david took on goliath, an almost 3,000 yearold story that writer Malcolm Gladwell believes weve been getting wrong all this time. Malcolm gladwell when we look at battles between lopsided parties, we exaggerate the strength of the favorite and we underestimate the strength of the underdog. Cooper Malcolm Gladwell believes underdogs win more often than we think because their limitations can force them to be creative. David couldnt slay goliath with a sword, but with his sling, he could

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