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04-21-2015, 12:19 PM
(Reuters) - A federal appeals court on Monday rejected the fugitive Paul Ceglia's efforts to revive his civil lawsuit against Facebook Inc and founder Mark Zuckerberg seeking a big stake in the social media company, and to halt a related criminal prosecution for fraud.
The 2nd U.S. Circuit Court of Appeals in New York said "overwhelming forensic evidence" demonstrated that a 2003 "Work for Hire" contract that Ceglia claimed entitled him to a 50 percent Facebook stake was forged.
Calling Ceglia "an individual who has repeatedly demonstrated total disregard for our judicial system," the appeals court also said he did not show it was necessary or justified to dismiss the government's criminal case accusing him of trying to extort Facebook and Zuckerberg.
Lawyers for Ceglia did not immediately respond to requests for comment. A lawyer for Facebook and Zuckerberg did not immediately respond to similar requests. A spokeswoman for U.S. Attorney Preet Bharara in Manhattan declined to comment.
Ceglia, a wood pellet salesman from Wellsville, New York, had been set to face a May 4 trial but removed his electronic ankle bracelet in early March and disappeared, along with his wife, two children and a dog. His whereabouts remain unknown.
The criminal case arose from Ceglia's June 2010 civil lawsuit in upstate New York against Menlo Park, California-based Facebook and Zuckerberg.
Ceglia alleged that an April 2003 contract with Zuckerberg, then a Harvard University freshman who had done programing work for Ceglia's StreetFax.com, entitled him to half of Facebook, whose market value was about $226 billion as of Friday's close.
But the 2nd Circuit said the eventual discovery of the real StreetFax contract between Ceglia and Zuckerberg, for a project unrelated to Facebook, "puts the lie" to Ceglia's claim.
The court also said Ceglia's claim "that he inexplicably failed to act (or, as he told news media, forgot that he was a 50 percent owner of one of the world's most renowned corporations)" for seven years "belies common sense."
The cases are Ceglia v. Zuckerberg et al, 2nd U.S. Circuit Court of Appeals, No. 14-1365; and Ceglia v. Holder et al in the same court, No. 14-1752.
(Editing by Chizu Nomiyama and Ted Botha)
The 2nd U.S. Circuit Court of Appeals in New York said "overwhelming forensic evidence" demonstrated that a 2003 "Work for Hire" contract that Ceglia claimed entitled him to a 50 percent Facebook stake was forged.
Calling Ceglia "an individual who has repeatedly demonstrated total disregard for our judicial system," the appeals court also said he did not show it was necessary or justified to dismiss the government's criminal case accusing him of trying to extort Facebook and Zuckerberg.
Lawyers for Ceglia did not immediately respond to requests for comment. A lawyer for Facebook and Zuckerberg did not immediately respond to similar requests. A spokeswoman for U.S. Attorney Preet Bharara in Manhattan declined to comment.
Ceglia, a wood pellet salesman from Wellsville, New York, had been set to face a May 4 trial but removed his electronic ankle bracelet in early March and disappeared, along with his wife, two children and a dog. His whereabouts remain unknown.
The criminal case arose from Ceglia's June 2010 civil lawsuit in upstate New York against Menlo Park, California-based Facebook and Zuckerberg.
Ceglia alleged that an April 2003 contract with Zuckerberg, then a Harvard University freshman who had done programing work for Ceglia's StreetFax.com, entitled him to half of Facebook, whose market value was about $226 billion as of Friday's close.
But the 2nd Circuit said the eventual discovery of the real StreetFax contract between Ceglia and Zuckerberg, for a project unrelated to Facebook, "puts the lie" to Ceglia's claim.
The court also said Ceglia's claim "that he inexplicably failed to act (or, as he told news media, forgot that he was a 50 percent owner of one of the world's most renowned corporations)" for seven years "belies common sense."
The cases are Ceglia v. Zuckerberg et al, 2nd U.S. Circuit Court of Appeals, No. 14-1365; and Ceglia v. Holder et al in the same court, No. 14-1752.
(Editing by Chizu Nomiyama and Ted Botha)