If they can't find any evidence of such contract, I expect the charges will be dismissed and his stuff restored.
I don't think the argument that he's not allowed to do it, by his own will with his own funds, will hold in court; if I understand the law correctly. I guess at most he might be in trouble regarding the Ley de Protección de Datos, IANAL and I wouldn't know. In any case if private data-handling is fine and still the law wouldn't allow it, that law needs to be changed.