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Paul Ceglia
In June 2010, Paul Ceglia, the owner of a wood pellet fuel company in Allegany County, upstate New York, filed suit against Zuckerberg, claiming 84 percent ownership of Facebook and seeking monetary damages. According to Ceglia, he and Zuckerberg signed a contract on April 28, 2003, that an initial fee of $1,000 entitled Ceglia to 50% of the website's revenue, as well as an additional 1% interest in the business per day after January 1, 2004, until website completion. Zuckerberg was developing other projects at the time, among which was Facemash, the predecessor to Facebook, but did not register the domain name thefacebook.com until January 1, 2004. The Facebook management dismissed the lawsuit as "completely frivolous". Facebook spokesman Barry Schnitt told a reporter that Ceglia's counsel had unsuccessfully sought an out-of-court settlement.[77][78] On October 26, 2012, federal authorities arrested Ceglia, charging him with mail and wire fraud and of "tampering with, destroying and fabricating evidence in a scheme to defraud the Facebook founder of billions of dollars". Ceglia is accused of fabricating emails to make it appear that he and Zuckerberg discussed details about an early version of Facebook, although after examining their emails, investigators found there was no mention of Facebook in them.[79] Some law firms withdrew from the case before it was initiated and others after Ceglia's arrest.
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