Megaupload founder Kim Dotcom told nervous neighbours of his criminal past and offered them "tax fraud optimisation" in a joking email sent after his move into a $30 million Coatesville mansion.

Dotcom, a German millionaire formerly known as Kim Schmitz, sent the email to neighbours of the mansion he was leasing with his wife and children on April 21, 2010.

It was intended to address their concerns about his fleet of luxury cars speeding around the neighbourhood with license plates such as "HACKER".

He opened by telling neighbours he had found out about their concerns by hacking their computers, before revealing the insider trading convictions he had received in Germany and offering to open a local money laundering facility.

Neighbours were given a choice between notifying "Interpol, the CIA, and the Queen of England" about their concerns or allowing Dotcom to stay and do good for New Zealand.

The letter ended with an offer to meet neighbours for coffee - with the proviso they bring the cocaine.

He'd entered '(joke)' after the cocaine proviso.

France Komoroske, a retired lawyer who lives about two kilometres away from Dotcom, said she found the email funny.

However, elderly people who lived in the area were frightened at Dotcom's criminal links and worried he could hack into their computers, she said.

"If you're an older person or you don't understand how computers work it's quite frightening."

She replied accepting Dotcom's offer to meet up for coffee and asking whether he was serious about hacking their emails.

He said: "Do you really think I hacked your emails? Nonsense. One of my agents has infiltrated your family."

Dotcom was cut out of a locked panic room in an FBI-led raid on his mansion on Friday.

He is facing extradition to the United States, where he faces 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.

Kim Dotcom's 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". 15 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,

P.S. I did not park my Rolls Royce at the Zoo. I don't even like Zoo's. Too many small minded monkeys there."