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Video: Meet the world’s most wanted Web pirate

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    >> now the alleged mastermind behind one of the internet's biggest and most lucrative schemes. kim .com appeared in court as new details emerged about his life lifestyle. stephanie gosk is in london with details on this. good morning.

    >> reporter: good morning. with controversial legislation that hopes to cut down on internet piracy , supported by nbc universal , the fbi is cracking down. federal prosecutors have arrested one of the information superhighway 's biggest criminals. kim schmidt, a computer master mind best known by one of his other names, kim dot com . the world wide web made kim dot com a wealthy man. addicted to cars and everything else in the fast lane the 37-year-old likes to call himself dr. evil.

    >> if you're happy --

    >> reporter: he founded the most popular file sharing website mega upload . but the u.s. government says most of what was shared on the hong kong -based site -- movies, music and books -- was pirated. even though the company was promoted by music superstars who were among those it was allegedly stealing from.

    >> this is kanye. i like mega upload . it's the fastest, safest way to send files.

    >> reporter: thickering a legal battle with the music group which represents west. the fbi shut down mega uploads and asked new zealand authorities to arrest dot com who was living lavishly in a sprawling mansion. police say it wasn't easy.

    >> they found him huddling in a panic room clutching a sawed off shotgun. they had to cut him out of the room.

    >> reporter: prosecutors believe he has illegally earned $175 million and caused a half a billion dollars in damages to copy right owners. a charge that the defendants vigorously deny saying most of the content uploaded was legitimate. this isn't the hacker's first run-in with the law. he was found guilty of insider trading and embezzlement in his native germany. far from a low profile the married father of three had in your face decadence with yachts, fast cars and women.

    >> the photos on his website are ridiculous. crazy photos of him doing things.

    >> reporter: over the weekend the bank accounts were froze and cars seized including a pink cadillac and a $400,000 rolls royce phantom . now the man who likes to boast he's smarter than bill gates faces extradition to the u.s. in one of the biggest criminal copy right cases of all time. the defendants were in court today for a bail hearing in auckland. defense lawyers say he doesn't pose a flight risk. one of their arguments at 6'7" weighing over 280 pounds how could he flee undetected? matt?

    >> stephanie, thank you. just ahead,

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