At least, that was the excuse they used when they fired him. I think the actual reason was that he was hard to get along with. However, it's difficult to fire him for that reason. Much easier to fire him over misuse of corporate equipment.
The guy told everyone about his MP3 server. Including summer interns.
Are you able to elaborate on this? I've always wondered how the warez scene functioned; residential Internet connections are obviously insufficient, hacked resources too risky, and warez groups turn their nose up at any form of legitimate resources (e.g. dedi/colo hosting)
This leaves corporate infrastructure. All it takes is a small IT team with a big budget, lots of hardware and network resources, and management who neither know nor care how their resources are being utilized.
It's terribly romantic.
Hacked resources are used as well. I worked at a place that used an old SGI Indy as a mail relay. It wasn't really managed, and somebody rooted it to use as a distribution server for warez and porn. I suspect the admins kept it running as a source for their own warez and porn needs.
I got involved when a spammer got in and sent millions of emails, flooding our puny T1 with bounces.