No bigger allowance since split

LAURA WALTERS
Last updated 05:00 15/06/2014

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Kim Dotcom's  family's monthly allowance has remained at $20,000 despite the Megaupload founder splitting from his wife, Mona.

In 2012, following the raid on his Coatesville mansion, Dotcom's assets, including his bank accounts were seized.

Dotcom's lawyer, Robert Gapes, said the Dotcom family was given an allowance of $20,000 a month for living expenses following the raid.

The court also allowed the family a further $40,000 a month, drip fed from an unseized account containing $301,000 but crown law spokeswoman Jan Fulstow said that account was emptied "ages ago" and the Dotcom family was down to just the $20,000 monthly allowance.

Gapes said the $20,000 a month came out of the money and bonds taken from Dotcom. Essentially it was giving him some of his own money back, he said.

It was up to Kim Dotcom and Mona Dotcom how they divided up the money among themselves, Gapes said. In May, Dotcom announced he had separated from his 26-year-old wife after five years of marriage but there has not been any new application in terms of allowance based on the Dotcoms' separation, Fulstow said.

The foreign restraining order, which continued to keep Dotcom's fortune from him, did not stop him receiving money from other sources or starting new business ventures.

"As to where the money for Mr Dotcom's current initiatives are coming from, we don't know," Fulstow said.

The internet entrepreneur and founder of New Zealand's newest political party, the Internet Party, is also a shareholder of Kiwi companies RSV Holdings and Coatesville Trustee Services, according to the Companies Office. Dotcom is also a director of Coatesville Trustee Services, Dotty Media, MD Corporate Holdings and Kimpire Music.

However, the German millionaire is no longer a director of Mega, the company behind his encryption-based cloud storage site mega.co.nz. The Dotcom family's 18 per cent interest in Mega is registered in Mona's name through MD Corporate Trustees.

Mega is planning a backdoor listing through a reverse takeover by NZX-listed shell company TRS Investments that would value the online storage company at $210 million, on paper.

The ongoing battle over Dotcom's assets will be back in court at the end of July as the Crown appeals a High Court ruling that Dotcom should be allowed his fortune back.

For now Dotcom is unable to get his hands on his fortune and this looks to continue for some time yet, with Hollywood film and music studios fighting to freeze his assets following a new civil case lodged in April.

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- Sunday Star Times

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