NZ secret services spied "illegally" on Dotcom The founder of Megaupload, Kim Dotcom, may avoid extradition to the USA after an offical report criticised the New Zealand secret services for illegally spying on him. It has even prompted an apology by the prime minister. Of course I apologise to Mr. Dotcom. I apologise to New Zealanders. I've made it quite clear to the director of GCSB my level of dissatisfaction. Frankly, I'm pretty appalled by what I've seen," said John Key. New Zealand law prohibits spying on cititens and residents. Dotcom, real name Kim Schmitz, is a German national but obtained permanent New Zealand resident status in 2010. The FBI claims he led a group that has amassed a fortune of some 150 million euros since 2005 by copying and distributing music, film and other copyright content without permission. A New Zealand court ruled in May that search warrants for Dotcom's house, raided in January, when cars, artworks and computers were confiscated, were illegal. More about: Espionage, extradition, Internet, Justice, Megaupload, New Zealand