Alleged internet pirate Kim Dotcom reportedly sent an email to his concerned neighbours joking about money laundering, hacking their email accounts and taking cocaine.



Some neighbours were reportedly scared by the email, though one said she saw the funny side.



Dotcom and three others were arrested on Friday in an FBI-led police raid at his rented Coatesville mansion. Dotcom was today denied bail, while decisions were pending on his co-accused. US authorities want them extradited.



It is alleged his company, Megaupload, breached copyright laws which cost copyright owners more than $US500 million - charges he has denied.



Coatesville resident and lawyer France Komoroski said she became concerned about Dotcom's past, which includes convictions for hacking and insider trading, and began researching him after he moved into the neighbourhood.



She emailed those concerns to several other neighbours - but not Dotcom.



To their initial surprise and concern, the email soon landed in the hands of the internet mogul himself, with residents nervous about how he managed to get hold of the email.



It was later found one of the recipients had forwarded her email to a third party who then forwarded it to Dotcom.



In his reply addressed to "Neighbourhood-Watch" and sent in April 2010, Dotcom pokes fun at their concerns.



"As you all know I recently moved into the Neighborhood and I am a former hacker. Well I was just hacking into a local mail server and guess what I found."



He then goes on to list the benefits of "having a criminal Neighbor like me", including getting stock tips from international insiders, money laundering and dealing with "a nasty neighbor".



Komoroski, who has not met Dotcom, said some neighbours were alarmed that Dotcom had responded, and because they didn't know how he got the email or their addresses, believed his claim he had hacked their accounts.



"His email didn't scare me, his email I thought was hilarious but one of the neighbours thought that what he was saying was true and I think he was frightened by it and then another neighbour who had been with us in wanting to look at whether Kim belonged in our neighbourhood dropped out of it as soon as she got that email."



Komoroske, who said Dotcom would scare their horses by speeding down Coatesville roads in his luxury cars, emailed to accept Dotcom's invitation for coffee and he responded saying they were welcome and "It would be nice to meet the two leaders of the Coatesville Inquisition movement in person".



"P.S. Do you really think I hacked your emails? Nonsense. One of my agents has infiltrated your family :-)"



Originally from the USA, Komoroske was not surprised to hear about Dotcom's alleged transgressions though she did not think he would be caught.



"I told my brother I always thought Kim's BMI [Body Mass index] would get him before the FBI did," she joked.



"He's such a big guy, I thought his health would give out before somebody actually brought him down."



THE EMAIL IN FULL



Dear Neighborhood-watch,



As you all know I recently moved into the Neighborhood and I am a former hacker. Well I was just hacking into a local mail server and guess what I found.



First of all let me assure you that having a criminal Neighbor like me comes with benefits.



1. Our newly opened local money laundering facility can help you with your tax fraud optimization.



2. Our network of international insiders can provide you with valuable stock tips.



3. My close personal relations with other (far worse) criminals can help you whenever you have to deal with a nasty Neighbor.



In all seriousness: My wife, two kids and myself love New Zealand and 'We come in peace'.



Fifteen years ago I was a hacker and 10 years ago I was convicted for insider trading. Hardly the kind of crimes you need to start a witch hunt for. Since then I have been a good boy, my criminal records have been cleared, and I created a successful Internet company that employs 100+ people.



All the media has to report are old news. Why? Because I have chosen to avoid the media. Just look what the media did to this Neighborhood. Scary.



Now you can make a choice: 1: Call Interpol, the CIA, and the Queen of England and try to get me on the next plane out of New Zealand. 2: Sit back, relax and give me a chance to do good for New Zealand and possibly the Neighborhood.



If you feel like it come over for coffee sometimes. And don't forget to bring the cocaine (joke).



All the best, Kim.

Reuters BIG BUSINESS: Kim Dotcom.