Another Facebook co-founder shows evidence of alleged fraud

When Paul Ceglia claimed that he owned 50 percent of Facebook and sued Mark Zuckerberg last year, not many people believed him.

Ceglia had waited seven years to file his lawsuit and was a convicted felon who had been charged with fraud on an unrelated company. Facebook dismissed his claims as fake. Now it looks like this is one headache that won’t go away and could cost the company a lot of money in legal fees — and possible damages.

Ceglia is back, and it looks like his lawsuit could be a lot more annoying and difficult to dismiss now. Ceglia has hired a major law firm, DLA Piper, to handle his case. And he has disclosed a number of emails that show that Zuckerberg was trying to bamboozle Ceglia out of his share of the company at the same time Zuckerberg was stalling his work for the Winklevoss twins, who won a $65 million settlement from Facebook.

Facebook told Business Insider that the emails are fabricated.

Orin Snyder, Facebook’s outside counsel at the law firm Gibson Dunn & Crutchr, said, “This is a fraudulent lawsuit brought by a convicted felon, and we look forward to defending it in court. From the outset, we’ve said that this scam artist’s claims are ridiculous and this newest complaint is no better.”

Previously, Ceglia showed that he had a copy of a contract that he and Zuckerberg had signed that showed Zuckerberg was working on a project called “the face book.” Ceglia also had a canceled check for $1,000. Ceglia only had 1 percent ownership of the social network, but his share grew 1 percent for every day that the project remained uncompleted past a certain launch date.

Ceglia has now produced more than a dozen emails between him and Zuckerberg from July 2003 to July 2004, the year Facebook, which now has more than 600 million users, was born. In the emails, the two discuss the project in detail and how Ceglia will fund it. Ceglia alleges that the emails show Zuckerberg sandbagged him and told him “the face book” project wasn’t working out so well. Zuckerberg allegedly offered to send Ceglia $2,000 in funding back in the summer of 2004, right when Zuckerberg had moved to California to develop and raise money for Facebook.

It’s a crazy tale, and if any of it is true, then there just might be a sequel coming to The Social Network movie, which was a partially fictionalized account of how Zuckerberg parted ways with the Winklevoss twins and co-founder Eduardo Saverin.

[photo credit: Business Insider]

  • http://www.famebook.com famebook

    Validity aside, I'm particularly interested in both the fact that; to most of us this would be no surprise alongside the Winklevoss case which Facebook's hype machine have already managed to turn into a peccadillo, but also that it is a tangible measure of their influence over tech and mainstream press. Henry Blodget has set a benchmark here and I can only imagine the level of debate proper journalists within our favorite news brands are having with their bosses over how to cover this story. Facebook's awesome growth curve is laudable, but will the price of an overwhelming majority who in my opinion 'hate to love' Facebook and certainly don't trust the brand, along with their still questionable business model which treats our digital identities as their own to trade, finally be their undoing?If this case does have merit, then any journalist worth their salt and free to do what the craft absolutely should, must be salivating at the prospect of an Untouchables type story unfolding with a digital Al Capone and an as yet uncast Eliot Ness!At least we may start to really see who the good guys are! Glad to see you're chalked up already Dean!

  • Chris W.

    Let me guess, he still hasn't finished and Ceglia now owns 100,000% of the face book?

  • http://steroids.homepage.ph/ Buy Steroids in Manila

    i'd ahte to see zucks millions go to a known scammer even though i'm no fan of fb.

  • emailchris

    Winklevoss's got $160 million, didn't they?And Ceglia says he owned 50% + 34% for a total of 84%, right?Or are all the other sites misinformed?

  • JPB1972

    Researchers regularly use matching software to compare writing styles to determine attribution (see the Shakespeare-Marlowe controversy). Given how many Zuckerberg emails are public, it should be easy to compare the writing styles of the author of Ceglia's emails to Zuckerberg's known emails and see if there is a fit.

  • http://venturebeat.com/2011/11/03/ceglia-is-back/ Judge orders alleged Facebook co-founder Ceglia to return to U.S. to hunt for evidence | VentureBeat

    [...] Ceglia persisted. In April 2011, he came back with an impressive law firm, DLA Piper, at his back and some new [...]

  • http://eskobo.com/2011/11/03/judge-orders-alleged-facebook-co-founder-ceglia-to-return-to-u-s-to-hunt-for-evidence/ Judge orders alleged Facebook co-founder Ceglia to return to U.S. to hunt for evidence | Tech News Aggregator

    [...] Ceglia persisted. In April 2011, he came back with an impressive law firm, DLA Piper, at his back and some new [...]

  • http://www.godigitalapps.com/judge-orders-alleged-facebook-co-founder-ceglia-to-return-to-u-s-to-hunt-for-evidence/ Judge orders alleged Facebook co-founder Ceglia to return to U.S. to hunt for evidence « Go Digital Apps

    [...] Ceglia persisted. In April 2011, he came back with an impressive law firm, DLA Piper, at his back and some new [...]

  • http://www.vircom.com/security/facebook-ceglias-alleged-emails-fraud-or-not/ Facebook: Ceglia’s alleged Emails, fraud or not? | Anti-Spam

    [...] ”Another Facebook co-founder shows evidence of alleged fraud”, VentureBeat.com [...]

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