Paul Ceglia, The Guy Who Is Trying to Sue Facebook, Arrested For Fraud

Posted by on October 26, 2012 at 6:00 pm

A good day for Facebook!

Back in 2003 Paul Ceglia had a contract with Mark Zuckerberg to build a site called StreetFax. According to Ceglia, he and Zuckerberg made an agreement on April 28, 2003 with a fee of $1,000 which entitled Ceglia to 50 percent of the website’s revenue, as well as an additional 1 percent interest in the business per day after January 1, 2004 (if Zuckerberg was tardy in deploying the site), until the website was completed.

The contract itself says Ceglia agreed to pay Zuckerberg $1,000 for StreetFax and $1,000 for another project called PageBook. The contract also mentions an expanded project called The Face Book to be completed by January 2004, charging an additional 1% interest in the business will be due the buyer for each day the website is delayed from that date. Ceglia was claiming that he owned 84% of Facebook after all of this and brought a lawsuit against Facebook and Zuckerberg.

Today, Ceglia was arrested on charges of mail and wire fraud after the US Postal Service conducted an investigation. A criminal complaint in the case said a search of Ceglia’s computer hard drives uncovered the real April 28, 2003 contract. Other evidence included proof the the spacing is different from the real contract which Ceglia emailed to his attorney in 2004 and that was found on backups at Harvard. I guess the guy isn’t very good with Photoshop. Zuckerberg and another founder has always said, the idea for Facebook hadn’t come about until months after the contract with Ceglia.

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