Facebook CEO Mark Zuckerberg at the Gorki residence while meeting with the Russian Prime Minister Dmitry Medvedev in Moscow in October. (Alexander Zemlianichenko / Associated Press) |
October 26, 2012, 8:58 a.m.
Paul Ceglia, who sued Mark Zuckerberg for half his stake in Facebook Inc., has been charged in a multimillion-dollar scheme to defraud the social networking giant and its founder and chief executive officer.
Ceglia was arrested at his home in Wellsville, N.Y., on Friday, federal prosecutors said, and is scheduled to appear in federal court in Buffalo, N.Y., Friday afternoon.
The complaint unsealed Friday alleges Ceglia doctored, fabricated and destroyed evidence to falsely claim he was entitled to a 50% stake in Facebook.
Manhattan U.S. Attorney Preet Bharara said Ceglia in seeking a "quick payday" had attempted a "massive fraud" and "corruption of our legal system."
Prosecutors say Zuckerberg agreed in 2003 to perform programming work for Ceglia and his fax business to earn money while he was a Harvard University student. Facebook denies that Zuckerberg gave Ceglia a stake in Facebook, which launched in 2004.
Dean Boland, who has been representing Ceglia in his civil case against Facebook, could not be immediately reached for comment. It was unclear who will represent Ceglia in court.
For years Zuckerberg battled allegations from fellow Harvard alumni Cameron and Tyler Winklevoss that they, not Zuckerberg, came up with the idea for Facebook. Ceglia was yet another person making claims to the billions in wealth created by Facebook, which went public in May.
Ceglia's claims were met with skepticism because of his checkered past, which includes a conviction for possession of hallucinogenic mushrooms in 1997 and fraud allegations involving his wood-pellet business. He has had a revolving door of lawyers representing him in the civil case against Facebook.
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