Unbelievable abuse of power and a total lack of understanding of the nature of this business.
To do this much damage without a shred of evidence is absolutely unforgivable.
The fact that the guy basically assumes that he'll go to prison because he refuses to admit guilt to stuff that he didn't do is quite telling. So much for justice.
This reminds me of the Steve Jackson Games raid.
This is one example: http://www.salon.com/opinion/greenwald/2009/06/27/preventive...
An employee of mine once did some very stupid stuff from our corporate network and premises and the police was very reasonable about it.
The quote you give is about some log files from a server in Italy (and fails to detail whether or not they were handed over), we're talking about seizing an entire datacenter here including all the customers machines (plenty of which were government boxes). Hundreds of businesses were ruined on the say so of some junkie.
Disproportional doesn't even begin to describe it.