The revelation comes after Schmitz was arrested over the charges of criminal copyright, infringement and conspiracy to commit racketeering.
The Federal Bureau of Investigation has also shut down his Hong Kong-based website, which it claims, was used to pirate half a billion dollars worth of entertainment content.
According to US officials, he owned at least 18 luxury cars, including a 1959 pink Cadillac and three cars with vanity license plates, and had personally funded Auckland’s 2010 New Year’s fireworks celebrations, news.com.au reports.
Schmitz had convinced several rappers, actors and musicians to record a promotional video for his file-sharing site Megaupload.
Megaupload listed hip-hop super-producer Swizz Beatz, also known as Kasseem Dean as its CEO just before the site was shutdown by the authorities.
Swizz Beatz’s spokesperson confirmed her client had been named CEO, but added that she is trying “clarify” whether the appointment actually went into effect.