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U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

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Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#21
A few thoughts:

1. When Ceglia first filed his claims, I called it a "lawsuit full of holes [that was] built up by sensationalist reporting into a supposed major threat to Facebook and to Mr. Zuckerberg" and concluded that, "in the courts, this thing is going nowhere." (http://news.ycombinator.com/item?id=1537158) My sense of this had nothing to do with any fraudulent tampering with evidence as alleged now in the criminal prosecution but instead with the whole smell of the thing: a flaky 2-page contract with basically incoherent terms used as a basis for a lawsuit brought by a backwater lawyer who drafted a complaint that would have been an embarrassment to a first-year law student. It looked like a joke on the face of it, notwithstanding that a small-town judge had initially entered a TRO based on the filing.

2. Then, in April, 2011, this case looked like it had taken a major turn: Ceglia had dumped his original lawyer and retained the prestigious firm of DLA Piper; he also produced a mountain of emails "documenting" that he and Mr. Zuckerberg had, in effect, entered into a legal partnership giving him a major ownership piece in the FB venture; he also (via the lawyers) put together a compelling story in his complaint making it appear that FB and Mr. Zuckerberg were in deep legal trouble concerning his claims. (Here is my comment at the time: http://news.ycombinator.com/item?id=2438063) Once again, there was a sensationalist wave of reporting across the web rejoicing about how Mark Zuckerberg was about to get his comeuppance.

3. Since that time, through the work of very able lawyers for Facebook, the Ceglia case has been progressively torn to shreds in the federal court to which it had been removed and, as the case has disintegrated, it has drawn progressively less interest (the DLA firm withdrew at the first sign of serious trouble). Indeed, without the dramatic turn of a federal criminal indictment, I doubt that it would done more than draw a few yawns as it eventually headed to the judicial graveyard where most flaky cases ultimately find their rest.

4. The lesson here is how prejudice and crowd-think can dramatically affect and distort perceptions. When someone takes on the role of villain (as Mr. Zuckerberg has in some circles), there are those who so desperately want to see him torn down that they will suspend their better judgment just to see it happen, whether he was right or wrong in what he had done. This is not to excuse him in things he may have done wrong in other contexts, but he had done nothing wrong here and it is just amazing to me how many people were willing to take it as a given that he had even with little or no evidence to back it up.

5. The other (major) lesson here is that there are serious limits to playing fast and loose with the courts. It is true that there is much abusive litigation but there is obviously a line that cannot be crossed without inviting horrific consequences. It doesn't happen often enough that abusive litigants get what they deserve but, when it does occasionally happen, it is very nice to see. At least it sets an outer bound on what people can do to abuse one another in the courts.

Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#22
post #5

Did this line strike anyone else as pathetic? In today’s press release, USPIS Inspector-in-Charge Randall C. Till added: “When Mr. Ceglia allegedly decided to take advantage of Mark Zuckerberg and Facebook, he underestimated the resolve of the Postal Inspection Service to bring him to justice for illegal use of the U.S. Mail.” Ceglia is probably in the wrong and unethical. But the self-righteousness and pompadour of…

Everyone's allowed to take pride in a job well done. What's pathetic in that?

Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#24
post #8

I'm disappointed by all the folks calling mail fraud a 'loophole'. Mail and wire fraud are the ways people prosecute domestic 419 (Nigerian prince) scams and other confidence games. This case shouldn't be given a free pass just because the party intended to be deceived is the judicial system rather than the mail recipient.

Legality of fraud should have nothing to do with whether the mail was used.

Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#25
post #21

A few thoughts: 1. When Ceglia first filed his claims, I called it a "lawsuit full of holes [that was] built up by sensationalist reporting into a supposed major threat to Facebook and to Mr. Zuckerberg" and concluded that, "in the courts, this thing is going nowhere." ( http://news.ycombinator.com/item?id=1537158 ) My sense of this had nothing to do with any fraudulent tampering with evidence as alleged now in the c…

What do you see in Ceglia's future?

Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#26

I was struck when we incorporated our company and raised financing how much we still use ink and paper to keep track of things like corporate ownership. When signing so many documents I wanted to seal them with paraffin wax and send them to our lawyers via carrier pigeon. In the case of Facebook, a multi-billion dollar company, it seems amazing that someone can come out of the woodwork and with a little effort in doc…

There's no technological problem with creating a "contract bureau" - just demand contracts to be in a somehow-digital format (scanned handwritten document counts) and have everyone send [SHA1(document) + names of entities signed on the document] to the bureau. Only problem with demanding this is that you /want/ people to be able to sell their car without access to a computer. That, and authentication.

Ok, I've now seen reference to both MD5 and SHA1 w.r.t. digests which would have long shelf lives. Please either talk in generic terms, or suggest the use of an algorithm that doesn't have known collisions and/or suspected weakness.

I do understand that people are using these as a mental shorthand for "A one-way cryptographic hash", but when your instinctive exemplar of a digest algorithm is in the "not-recommended" category, it worries me that, in a context that matters (code or spec), you might accidentally type MD5 when you meant to type SHA3 or SHA-256

Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#27
post #21

A few thoughts: 1. When Ceglia first filed his claims, I called it a "lawsuit full of holes [that was] built up by sensationalist reporting into a supposed major threat to Facebook and to Mr. Zuckerberg" and concluded that, "in the courts, this thing is going nowhere." ( http://news.ycombinator.com/item?id=1537158 ) My sense of this had nothing to do with any fraudulent tampering with evidence as alleged now in the c…

What do you see in Ceglia's future?

You mean, aside from regularly spaced vertical obstructions to his outward view?

Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#28
post #21

A few thoughts: 1. When Ceglia first filed his claims, I called it a "lawsuit full of holes [that was] built up by sensationalist reporting into a supposed major threat to Facebook and to Mr. Zuckerberg" and concluded that, "in the courts, this thing is going nowhere." ( http://news.ycombinator.com/item?id=1537158 ) My sense of this had nothing to do with any fraudulent tampering with evidence as alleged now in the c…

This Atlantic piece on mob rule in Nigeria highlights three frightening features of lynchings; incredible speed, terrifying spontaneity, and often egregious inaccuracy.

http://www.theatlantic.com/international/archive/2012/10/per...

There is an often-hidden virtue to the methodical, deliberative nature of a real court system that's easy to miss until you see how humans can behave in its absence.

Re: U.S. Arrests Paul Ceglia for Multi-Billion Dollar Scheme to Defraud Facebook

#29
post #5

Did this line strike anyone else as pathetic? In today’s press release, USPIS Inspector-in-Charge Randall C. Till added: “When Mr. Ceglia allegedly decided to take advantage of Mark Zuckerberg and Facebook, he underestimated the resolve of the Postal Inspection Service to bring him to justice for illegal use of the U.S. Mail.” Ceglia is probably in the wrong and unethical. But the self-righteousness and pompadour of…

The Postal Inspection Service is a useful tool. Mail fraud brings down a lot of sleazeballs that would otherwise have gotten away. Maybe because that's the last thing they would think to cover up.

You make it sound like one of those grab-bag offenses like resisting arrest that effectively amount to `you pissed off the government and now we're going to punish you for it'.
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