Federal investigators arrest Paul Ceglia – the man who claimed 50% Facebook share

Federal investigators arrest Paul Ceglia – the man who claimed 50% Facebook share In what apparently marked the conclusion of a rather weird lawsuit which hit the social media company Facebook during its spectacular-growth phase, 39-year-old New York businessman Paul Ceglia - who claimed that he owned a 50 percent Facebook share - was arrested by the federal investigators on Friday, on charges which included fabricating and destroying evidence in a lawsuit seeking half-ownership of Facebook.

The accusations leveled against Ceglia chiefly comprised forging of documents, filing of a fake lawsuit, and devising a multi-million dollar scheme. The charges were included in a 13-page complaint filed in federal district court in Manhattan; and, if Ceglia is convicted, he could face a jail term of up to 40 years.

With a statement from the US attorney's office in New York City noting that Ceglia had "doctored, fabricated, and destroyed evidence to support his false claim," Ceglia's arrest is an indication that federal investigators have seemingly help up Facebook CEO Mark Zuckerberg's argument that he had signed a work-for-hire contract with Ceglia.

The investigators have found a copy of the original agreement between Zuckerberg and Ceglia; and federal prosecutors for the Southern District of New York said in their complaint that the contract makes no reference to Facebook.

Stating that "there is probable cause to believe that Paul Ceglia has engaged in a multi-billion dollar scheme to defraud Facebook and Mark Zuckerberg," the complaint said: "Ceglia filed a federal lawsuit falsely claiming that he was entitled to at least a 50% interest in Facebook."