Tuesday, 30 October 2012

Paul Ceglia arrested on fraud charges for Facebook lawsuit

Federal agents arrested Paul Ceglia, an upstate New York man who claims he's owed 50% of Facebook, Friday morning on charges of perpetuating a "multi-billion-dollar scheme" to defraud the company. If convicted, Ceglia faces up to 40 years in prison.

The move could end a bizarre legal saga that began in July 2010, when Ceglia filed suit in New York claiming that he paid Facebook founder Mark Zuckerberg to build a website similar to what became Facebook, and that they agreed to split the company. Both Facebook (FB) and founder Mark Zuckerberg have strenuously denied Ceglia's claims.

The government's complaint against Ceglia, 39, echoes Facebook's accusations. Ceglia "doctored, fabricated, and destroyed evidence to support his false claim," according to a statement from the U.S. attorney's office in New York City.

The government's complaint accuses Ceglia of altering a contract and inventing emails that didn't exist.

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