But the creators/translators of these subtitles weren't selling them, they uploaded them for free.

I guess argument could be made that the actual site owner made money from ads (assuming there were ads on the site).

You can't just translate Harry Potter and distribute it.

Well I personally think that translating and distributing spoken dialogue from a film is quite different from translating a distributing a book. It's like song lyrics in my opinion.

I realize that it is likely just as illegal according to today's copyright laws, but that something like this would warrant a police raid is just beyond me.

that does not matter at all, you are "stealing" "intellectual property".

yeah, those word are a dumb concept.