well, to be precisely true, Sharereactor was run by a Swiss guy, and it was indeed torn down by the police. But the guy did not get in jail:
http://en.wikipedia.org/wiki/ShareReactor
but Sharereactor was designed for exchanging movies illegally, whereas rapidshare tries to be different :)
http://www.youtube.com/watch?v=ANTDkfkoBaI
:)