Paul Ceglia
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Paul D. Ceglia (born July 22, 1973) is an American fugitive. He is the founder of businesses such as Greensprings Natural Cemetery, StreetFax, PageBook, and Allegany Pellets. In 2010, Ceglia brought a lawsuit against Facebook, Inc., claiming ownership of 84% of the company. The judge dismissed Ceglia's claim as fraudulent. Ceglia and his family were found to have vanished on May 1, 2015 after he cut off a
GPS tracker A GPS tracking unit, geotracking unit, satellite tracking unit, or simply tracker is a navigation device normally on a vehicle, asset, person or animal that uses satellite navigation to determine its movement and determine its WGS84 UTM g ...
. In 2018 he was arrested in
Ecuador Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ' ...
, where he remains after that country denied the U.S. Justice Department's extradition request.


Biography

Ceglia was born in
Wellsville, New York Wellsville is a Town and largest community in Allegany County, New York, United States. As of the 2020 census, the town had a population of 7,099. Wellsville is centrally located in the south half of the county, north of the Pennsylvania border ...
to an Italian-American father, Carmine Ceglia, and an Irish mother.Businessweek: "Paul Ceglia: The Man Who Owns 84% of Facebook?"
August 4, 2010.
He moved around after high school, spending two years teaching at an alternative school in
Taos, New Mexico Taos is a town in Taos County in the north-central region of New Mexico in the Sangre de Cristo Mountains. Initially founded in 1615, it was intermittently occupied until its formal establishment in 1795 by Nuevo México Governor Fernando Ch ...
and opened an ice cream stand in New York. Ceglia claims he bought and sold real estate, built and renovated homes in Wellsville and
the Bahamas The Bahamas (), officially the Commonwealth of The Bahamas, is an island country within the Lucayan Archipelago of the West Indies in the North Atlantic. It takes up 97% of the Lucayan Archipelago's land area and is home to 88% of the a ...
, helped start an eco-friendly cemetery in
Ithaca, New York Ithaca is a city in the Finger Lakes region of New York, United States. Situated on the southern shore of Cayuga Lake, Ithaca is the seat of Tompkins County and the largest community in the Ithaca metropolitan statistical area. It is named ...
, and was a founding member of the local Green Party. Ceglia and his wife have also supported a school called Calix Academy in Kibera, a slum of
Nairobi Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ...
. They built a bakery to help the school make an income, as well as functional toilets and classrooms and, financially supported the education of orphans there. He told ''Businessweek'': "I like to think about myself as someone that is driven by trying to contribute in some way to increasing the consciousness on the planet", which he also states on his Facebook page. Ceglia has three sons and one daughter, with his wife, Iasia.Missing
National Center for Missing & Exploited Children The National Center for Missing & Exploited Children (NCMEC) is a private, nonprofit organization established in 1984 by the United States Congress. In September 2013, the United States House of Representatives, United States Senate, and the Pres ...
Accessed June 16, 2016
His third son was born in Ecuador while he was a fugitive.


Paul Ceglia vs. Mark Zuckerberg

Ceglia met future Facebook CEO
Mark Zuckerberg Mark Elliot Zuckerberg (; born ) is an American business magnate, internet entrepreneur, and philanthropist. He is known for co-founding the social media website Facebook and its parent company Meta Platforms (formerly Facebook, Inc.), of ...
in 2003, when Ceglia posted a
Craigslist Craigslist (stylized as craigslist) is an American classified advertisements website with sections devoted to jobs, housing, for sale, items wanted, services, community service, gigs, résumés, and discussion forums. Craig Newmark began the ...
advertisement seeking help with his website StreetFax."The Guy Who Says He Owns 50% Of Facebook Just Filed A Boatload Of New Evidence -- And It's Breathtaking" by Henry Blodget, ''Business Insider'', April 12, 2011
/ref> On June 30, 2010, Ceglia filed a lawsuit against Zuckerberg, claiming 84% ownership of Facebook and seeking monetary damages. According to Ceglia, he and Zuckerberg (then an undergraduate at
Harvard Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of higher le ...
) entered an agreement on April 28, 2003 with a fee of $1,000 which entitled Ceglia to 50 percent of the website's revenue, as well as an additional 1 percent interest in the business per day after January 1, 2004 (if Zuckerberg was tardy in deploying the site), until the website was completed. The purported contract obligated Ceglia to pay Zuckerberg $1,000 for StreetFax and $1,000 for another project called PageBook. The contract also mentioned an expanded project called The Face Book to be completed by January 2004, charging an additional 1% interest in the business owed to Ceglia for each day the website is delayed from that date. Ceglia proffered a $1,000 receipt from his checkbook, dated six months after the contract, as evidence that he paid Zuckerberg for his work. Zuckerberg admitted to having worked for Ceglia on StreetFax.com, but claimed that Facebook was an entirely separate idea that had no relation to Ceglia. Ceglia and his lawyers have claimed that Facebook planted a fake document on his computer to incriminate him. The evidence presented by Ceglia was determined to be fabricated.Accused Facebook Scammer Faces Marshals' $5000 Bounty
accessed April 4, 2015


Legal counsel in Facebook case

In court, Ceglia was represented by Paul Argentieri (his longtime counsel); Jeffrey Lake, a San Diego attorney, represented him on an interim basis after the law firms of Lippes Mathias Wexler Friedman, Connors & Vilardo, and DLA Piper all fired their client and left the case. Lippes Mathias Wexler Friedman withdrew as counsel in early 2011, when their own analysis concluded that the contract Ceglia was using as evidence had been forged. On June 29, 2011, DLA Piper withdrew from the case, and Ceglia retained Jeffrey Lake. On October 18, 2011, Lake also withdrew from the case. Lake did not give a reason for his withdrawal. In October 2014, Facebook filed a lawsuit in New York Supreme Court against DLA Piper, Milberg LLP and Lippes Mathias Wexler Friedman for malicious prosecution, claiming that these firms should have known that Ceglia's case was based on forged documents. The case was dismissed in December 2015.


Arrest and escape to Ecuador

On October 26, 2012, federal agents arrested Ceglia and charged him with fabricating evidence in relation to his suit against Zuckerberg. In March 2015, authorities discovered that Ceglia had removed his GPS tracking device and issued a warrant for his arrest. Law enforcement officials expressed concern that Ceglia was out of the country. Ceglia's mother, father, and brother lost the $250,000 they put up for Ceglia's bond. Ceglia was later found in
Ecuador Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ' ...
and arrested by local authorities on August 23, 2018. Though Ecuador's National Court of Justice ordered him returned to the U.S. to face the criminal charges, President Lenin Moreno reversed the extradition order and Ceglia was freed from Ecuadorian custody in June 2019. Moreno concluded that Ceglia's third son--who was born in Ecuador in April 2018--was subject to court-ordered child support, thus prohibiting Ceglia from leaving the country in the "best interest" of the child. As of 2021, Ceglia remains in Ecuador and is expected to seek asylum and citizenship there.


Prior Criminal Record


Allegany Pellets LLC

Ceglia and his wife Iasia (née McCarthy) were owners of Allegany Pellets LLC and were charged with one count of first-degree scheme to defraud and 12 counts of fourth-degree
grand larceny Larceny is a crime involving the unlawful taking or theft of the personal property of another person or business. It was an offence under the common law of England and became an offence in jurisdictions which incorporated the common law of Engl ...
in November 2009. In December 2009, the then-Attorney General of New York (later
Governor A governor is an administrative leader and head of a polity or political region, ranking under the head of state and in some cases, such as governors-general, as the head of state's official representative. Depending on the type of political ...
)
Andrew Cuomo Andrew Mark Cuomo ( ; ; born December 6, 1957) is an American lawyer and politician who served as the 56th governor of New York from 2011 to 2021. A member of the Democratic Party, he was elected to the same position that his father, Mario Cuo ...
announced a temporary restraining order banning Ceglia from taking advance payments from consumers, destroying any business records or property, or transferring any assets. Cuomo stated in a press release that the company, had "lied to customers and solicited new orders" even when it could not "deliver products as promised". The charges were eventually dropped as every customer was either refunded or received wood pellets.New York Office of Attorney General Press Release: ATTORNEY GENERAL CUOMO OBTAINS TEMPORARY RESTRAINING ORDER AGAINST WNY WOOD PELLET COMPANY SUED FOR DEFRAUDING CONSUMERS
, December 29, 2009


References

{{DEFAULTSORT:Ceglia, Paul 1973 births Living people Businesspeople from New York (state) People from Wellsville, New York American people of Irish descent American people of Italian descent American expatriates in Ireland Facebook litigation