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Paul D. CegliaAmerican businessman lays claim to 84 percent of Facebook shares
Date of Birth: 01.01.1973
Country:  USA |
Content:
- Paul D. Ceglia: A Controversial Figure in the Social Media Landscape
- Internet Ventures and Legal Troubles
- The Facebook Lawsuit
- The Work-for-Hire Contract
- Authenticity Disputes and Litigation
- Personal Life
Paul D. Ceglia: A Controversial Figure in the Social Media Landscape
Early Life and Entrepreneurial PursuitsPaul D. Ceglia, born in approximately 1973, embarked on a diverse business career. After graduating high school in 1991, he ventured into the video rental industry before relocating to Taos, New Mexico, to pursue a brief teaching stint. Upon his return to Wellsville, he established an ice cream business and later dabbled in online insurance. In 1997, he faced an arrest for possession of psilocybin mushrooms.
Internet Ventures and Legal Troubles
In 2003, Ceglia conceived StreetFax.com, a service that provided insurance companies with access to a database of street photographs. However, the venture proved unprofitable, leading Ceglia to shift his focus to real estate development in the Bahamas. In 2008, he founded Allegany Pellets, a sawdust briquette sales company, with his wife Iasia McCarthy.
In November 2009, Ceglia and his wife were arrested for fraud related to Allegany Pellets' failure to deliver fuel or provide refunds to customers, resulting in damages estimated at $200,000. Despite their release, Allegany Pellets' assets were subsequently seized in late December 2009, with the New York Attorney General ordering Ceglia to liquidate assets to settle his debts.
The Facebook Lawsuit
Ceglia gained notoriety in 2010 when he filed a lawsuit against Facebook and its founder, Mark Zuckerberg, claiming an 84% stake in the social media giant. He alleged that in April 2003, Zuckerberg contracted him to create the original "The Face Book" website for Harvard University students. According to the contract, Ceglia was supposedly entitled to 50% ownership for $1,000, with 1% additional ownership accruing each day the site remained unreleased beyond early 2004.
Facebook dismissed the lawsuit as frivolous, though they refrained from addressing the authenticity of the alleged contract and Zuckerberg's signatures. Despite an initial injunction preventing the sale of Facebook shares, a federal court lifted the order in July 2010.
The Work-for-Hire Contract
Further investigation revealed that Zuckerberg had indeed worked on contract-based programming projects in 2002-2003. Ceglia had posted a job listing on Craiglist seeking a developer for the StreetFax project, and Zuckerberg, offering the lowest bid, entered into an agreement with Ceglia. The contract stipulated a May 31, 2003, deadline for StreetFax, but its actual completion date is unknown.
During their collaboration, Zuckerberg reportedly shared his initial concept for Facebook with Ceglia, who then invested $1,000 in the venture (a check dated November 2003).
Authenticity Disputes and Litigation
Ceglia's delayed legal action raised questions. Some lawyers argued that his claim was time-barred, as New York law imposes a six-year statute of limitations on such contracts. On July 21, 2010, Zuckerberg's lawyers claimed that the contract was likely forged. They acknowledged Zuckerberg's work with Ceglia but denied any connection to Facebook.
Ceglia maintained that he had forgotten about the contract until he sought funding to settle the Allegany Pellets dispute. In August 2010, he presented a second check for $3,000 payable to Zuckerberg, though its purpose remained unclear. The lawsuit continued, with legal proceedings focusing on the appropriate jurisdiction (local or federal).
Personal Life
Records from classmates.com indicate that Ceglia has two children with his wife, Iasia McCarthy.
