Police were at fault in Dotcom spy affair
Police are blamed for causing the Government Communications Security Bureau to illegally spy on Mr Dotcom and one of his co-accused before they were arrested in January.
The claim is revealed in a memorandum filed in the Auckland High Court by the Crown, and obtained by NBR ONLINE.
It shows the GCSB asked the Organised and Financial Crime Agency to confirm whether Mr Dotcom and Bram Van der Kolk were foreign nationals.
OFCANZ "gave that assurance".
However, the GCSB can only "intercept the communications of foreign organisations or persons".
"It is accepted that the advice as to immigration status in relation to K Dotcom and B Van der Kolk and their respective families was incorrect," the memo from Crown lawyer John Pike says.
"The information transferred to OFCANZ related solely to the intended movements of the persons subject to the arrest phase of the OFCANZ operation."
Prime Minister John Key has ordered an investigation by the Inspector-General of Intelligence and Security, Paul Neazor, into the breach.