Megaupload founder Kim Dotcom appeared in court today in a hearing to appeal  North Shore District Court’s earlier decision that denied him bail because he was considered as a flight risk.  Unfortunately, the High Court in Auckland, New Zealand agreed with the earlier decision and rejected his appeal.

Dotcom appeared before the court citing his intent to un-freeze his account as the reason to not flee the country and go to Germany.

“I’m aware that if I go to Germany I would be unable to un-freeze my assets. What I want to do is stay here to fight and get my money back. What would I do in Germany with five kids and a wife with no money?  It is not an option for me,”  Dotcom stated.

Justice Raynor Asher stated that his intent to un-freeze his account was not enough to keep Dotcom in New Zealand and there is a possibility that the FBI did not freeze all of his accounts and that would enable him to flee to Germany where he will be safe from extradition to the US to face charges of engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering, and two substantive counts of criminal copyright infringement.

Also, Crown lawyer Anne Toohey, on behalf of the United States Government, told the High Court this morning that since Dotcom’s stay at the Auckland Central Remand Prison, a man known to have forged travel documents tried to visit him, strengthening the possibility of Dotcom’s intent to flee.

Dotcom’s lawyer, Paul Davison,  stated that staying in jail was not good for his health and he wanted to spend time with his pregnant wife and that having access to a helicopter and a jet doesn’t mean that the defendant would actually use them to escape.  And because Dotcom is high profile and has a unique appearance, it was highly unlikely that Dotcom could leave the country without being noticed by airport security.

During the hearing, Dotcom was given a chance to relay to the court his experiences since his arrest.

The Megaupload founder recalled how he was punched in the face and kicked by police officers when he was arrested in January.  He cited that he was approached by a person claiming to be a court prosecutor that could help him with his bail appeal for a sum of money, getting letters from female inmates wanting to befriend him and that a man filed application to visit him who was believed to be an expert forger.

“If people were to approach me and to offer such a service, I would tell them to go to hell,” Dotcom said. “I have no desire to run away.”

Toohey told the court that Dotcom resisted arrest and questioned him about the gun in his open safe inside the room where he retreated to, as well as the numerous credit cards found in his house and at least two passports.

Dotcom stated that  when he heard loud banging on his bedroom door, he followed the exit plan formulated by his body guard Wayne Tempero and headed for the Red Room, which was a panic room, and that he was afraid of getting shot.  Dotcom added that the gun in his safe was loaded with plastic rounds for self-defense, but he had no intention of using it, as he didn’t know how to, and when the police entered the room he had his hands out, but was still brutalized by the officers.

“One guy stood on my hand so my nail was ruptured causing it to bleed. It was quite agressive,” Dotcom claimed.

As for the credit cards, Dotcom stated that most of them were already of no use, but he just likes keeping them.

Toohey then told the court that the gun was loaded with shells containing buckshots and that police claimed his hand were not visible.  Tempero, who previouslu provided security for the Brunei Royal Family and David and Victoria Beckham, also took the stand and was questioned for his eligibility to use/carry a pistol, but has no license to do so.  Dotcom’s body guard said that he was going to apply for the license but failed to do so, since the authorities already busted them.

Dotcom must now remain in jail until his first hearing in a U.S. extradition request, scheduled for February 22.

As for the others arrested, Bram van der Kolk and Finn Batato were granted bail.  There’s no news yet for the bail hearing of Mathias Ortmann and Andrus Nomm.