Original subtitles

In this episode of American Greed, Bobby Kahn runs a New Jersey dealership

featuring cars so exotic that you have to ask the price you can't afford it.

A base price of $1 .8 million.

Only three people will have it.

Rolls -Royce Ghost, Lamborghini, Bobby Kahn is going after the high, high -end

consumers.

But the FBI believes Kahn has zoomed off into the sunset after selling cars that

aren't his.

I want my money. I want my car. Where is my car? Everything he did was about

stealing money. And later, in upstate New York, Paul Seglia claims to own half

of Facebook and says he's got the contract to prove it. Now that Facebook

worth billions, he was going to go after some of that money.

Mark Zuckerberg's signature is on the contract.

It just kind of gave you goosebumps.

But when Seglia heads to court to take on Zuckerberg, he ends up in handcuffs,

accused of fraud.

It's a huge situation involving very, very powerful people trying to

put Mr. Seglia in a vice and crush him. Whether he's a little guy speaking truth

to power or just a brazen con man, one thing is clear.

Paul Seglia has disappeared.

Paul comes up with this crazy scheme to show movement to be able to escape.

Since opening in 2013, Emporio Motor Group has been a hot destination.

for ultra -high -end exotic cars in Bergen County, New Jersey.

Emporio owner Bobby Kahn sells pre -owned status symbols on consignment.

In exchange for hosting the cars in his gleaming showroom and enticing buyers,

the car's owners agree to give Kahn a cut of the sale.

The way it should work is that you would get some of the money back for your

car. If you had a loan on it, the loan would be paid off, and then he would

make some money on it, so everyone would win.

Yet within its first year of business in Ramsey, consignors claim their cars

have gone missing. And buyers say when they call to ask for their titles,

instead, they get only the runaround.

By the spring of 2014, clients feel the excuses have worn thin.

And some, like Peter Winston, go to the dealership to demand answers in person.

I started looking around, and I said, I want to know what's going on here. I

want my car. Where's Bobby Conn? I want to speak to Bobby Conn.

Winston had consigned his BMW M6 convertible to Emporium, and now he's

it's missing.

They say, listen, if you don't calm down or get out of here, we're going to call

the police.

So I'm like, go ahead, call the police. And I'm like, come on, hurry up. I want

to speak to Bobby Conn. I want my money. I want my car. Where is my car?

Winston fears arrest, but he says when the cops arrive, he gets a different

shot.

Behind the policemen are an angry mob scene.

And coincidentally, we all had enough, and we all got there on the same day. So

there was over a dozen people there on this day looking to find out what's

on. So at this point, I realize what a disaster it is.

Emporio Motor Group is owned by Afzal Khan, a 32 -year -old dealer better

as Bobby.

Emporio Motor Group, the real adult toy store. If it's not good enough for us,

it's not good enough for you.

Khan is born in Scotland in 1982, the son of immigrants from Pakistan.

He grows up in the United States, graduating from high school in 2001.

Reporter Joan Verdon interviews Khan in 2013, shortly before Emporio's grand

opening. He said that as a young boy, he remembers begging his dad to take him

to car dealerships, that he would sneak in.

car magazines into his house, like the way other guys would be sneaking in

Playboy.

He claimed that he could tell a luxury car by the smell of its leather, that

it's a piece of art.

In 2008, entrepreneur Seth Rose runs a transport company for exotic and high

-end cars.

He meets Bobby Kahn at a Bentley and Lamborghini dealership on Long Island,

where Kahn works as a buyer.

When I first met Bobby, he was a fast talker, but a very likable guy.

He seemed to be a man of means.

He was always chauffeured around in a Bentley. He had an assistant, so he

very refined.

The Long Island dealership goes out of business in 2009, and Bobby Kahn sets up

shop in a modest Jersey City storefront as an independent dealer, calling

himself Emporio Motor Group.

Rose says he provides seed money for Khan's new venture.

I had sold a couple of my own cars through him, and he asked me if he could

on to the money to use to buy and sell cars.

At the time, I agreed, and we were partners on the cars.

He would buy a car, sell it, and give me a commission for part of the profit.

Rose feels that for six to eight months, their arrangement works well.

Every time he'd buy a car, he would send me the details of the car, pictures of

the car, because I have a huge network of exotic car owners that would be

interested in buying such cars.

At one point, he sent me information on a Ferrari that he purchased.

I had plenty of people interested.

Despite the intense demand, Bobby Kahn is reluctant to sell.

Rose says he has a ready excuse.

He kept insisting that there was a problem with the title and that he

sell the car, so I did a little fact -checking myself.

to find that he had sold the car and that it was gone.

Rose thinks he's been ripped off to the tune of $130 ,000.

He says he confronts Kahn about the missing Ferrari and the money, and they

out a payment schedule.

He came to see me at my office in Long Island, and he brought with him $10 ,000

in cash, and from that moment forward, he would send me money every month.

He really made a sincere attempt to apologize to me. I'm not going to say

completely trusted him, but I still stayed friendly with him.

Kahn appears to recover from the alleged misstep, and his company's profile

rises greatly in 2011.

That year, Emporio Motor Group becomes the exclusive U .S. distributor for

Zenvo, a carmaker from Denmark.

Its flagship supercar, the ST1.

is made entirely by hand.

Fifteen units are destined for the world. Out of the 15, three come to the

United States.

The U .S. model is an ST -150S, gives you 1 ,250 horsepower, seven -speed F -1

transmission, and a base price of $1 .8 million.

It's a major coup for Bobby Kahn.

In November 2011, Kahn premieres the Zenbo ST -1 at a posh New Jersey

set against the New York skyline.

There, Melissa Gorga gets behind the wheel.

Gorga is a star of the reality TV series The Real Housewives of New Jersey.

Sort of like starring in his own reality show. If you look rich, you are rich.

If you say it, it's true.

Trying to live what he thought was the Jersey lifestyle.

Next on American Greed.

Bobby Kahn mingles with stars, and his customers search for their missing car.

What are you going to do about this? This is my car. It's stolen.

It's my vehicle. It's my property. I have the title.

In April 2013, Bobby Kahn moves Emporio Motor Group to Ramsey, New Jersey.

He throws a grand opening to celebrate his sparkling new showroom.

He had a lot of people there. There was a ton of food. There were spotlights.

There were celebrities.

It was a big show.

VIP guests include professional athletes and musicians, as well as Jacqueline

Loretta and Melissa Gorga, who are cast members on the Bravo series The Real

Housewives of New Jersey.

Jenny J. Wow Farley from MTV's The Jersey Shore also makes an appearance.

Although the Emporio Motor Group showroom boasts copious eye candy, few

cars actually belong to Bobby Kahn.

The dealership's inventory is comprised of cars on consignment from private

owners. A lot of them said they had been trying to sell their car on Craigslist,

and he reached out to them and sort of charmed them and said, why are you

selling your car on Craigslist? Come bring it to my beautiful showroom.

Emporio Motor Group.

Quality service you can trust.

Brendan Kehoe works in New Jersey as a software executive.

He first visits Emporia Motor Group with his business partner, who buys a

Bentley from Bobby Kahn.

In the showroom, Kehoe spies his own dream car, a Porsche 911 Carrera S.

I've always wanted a Porsche 911.

I have a little gray model that's been sitting in my office for about 10 years.

And being a family man, I had never really owned, you know, a mad money type

car.

Several visits later, Kehoe finally succumbs to the siren song.

I had made a decision to say I'm going to buy the car that I had always wanted.

So I plunked the money down and drove around town in it for about an hour and

half, just for the experience of it.

Kehoe drives his dream car home with temporary plates and registration.

But he becomes concerned when 10 days pass and his title and registration

have not arrived. I went back to Emporio Motors and was just told that, oh, it's

on its way. When nothing arrives after a few more days, Kehoe says he returns to

the dealership. I've got another song and dance act just short of my dog ate

homework. I realized something was wrong.

On a hunch, Kehoe convinces his business partner, who bought a Bentley from

Bobby Kahn, to check the car's registration with the New Jersey Motor

Commission. They informed us that his registration in place had actually been

canceled the day after he acquired the car.

And immediately I then knew that something was up. I went back to

Bobby Kahn locked himself upstairs in his office.

would not come out.

Kehoe begins posting on luxury car forums and review websites, warning

about his title troubles at Emporio Motor Group.

I also went to Yelp and started putting up posts under my own name with my cell

number. I started getting phone calls, 50 or so people explaining to me their

story. Florida businessman Peter Winston says in January 2014, he talks with

Bobby Kahn.

about consigning his BMW M6 convertible.

I didn't really have a need to have such a fancy car anymore, and a family

member in need needed some money anyway, so I thought I would sell the car and

help them out.

Winston owns his car outright.

Being able to consign without handing over the car's physical title up front

makes him feel safe.

If two people were stopped, and one person is at a bus stop with a title to

vehicle, and another person is in the vehicle, And a policeman says, whose

vehicle this is?

And I say, it's mine, and I show the title. I believe the policeman will say,

sir, you'll have to get out of that vehicle and give it to him.

While Winston is at home in Florida with his title, he says Bobby Kahn has big

plans for his car in New Jersey.

He even sends me a picture of the car in the showroom, and it's all polished up

like when it was brand new.

And he says, don't worry, it's going to be out of here in one, two, three.

One, two, three, not so much.

He said, oh, I have a buyer.

Oh, it fell through. I have another buyer. It fell through.

Then finally said he had another buyer, and the thing is going through, and I'm

going to send you some money.

Finally, I got a Federal Express envelope, and it was empty.

So I said, what's going on here?

In spring 2014, Winston recalls traveling to New Jersey to confront

in the showroom.

I said, I want to know what's going on here. I want my car. Where's Bobby Kahn?

I want to speak to Bobby Kahn. There was over a dozen people there on this day

looking to find out what's going on.

At this point, I realized what a disaster it is and that, you know, I

serious loss on my hands with this car.

Winston eventually gets a call from a man in Illinois who says he has the M6.

The buyer has his own story of being duped by Bobby Kahn. At first, he says

in love with his new Beamer.

He's driving the car back to Illinois, probably with the top down, putting on

the music, maybe even putting it into the excess of the speed limit.

is magical.

But Peter Winston still has the title to the car.

Bobby Kahn has managed to sell it to the new buyer without the proper

documentation.

And without title, the new owner can't register the car in Illinois.

Making matters worse, the new buyer got a loan to buy it.

And his lender expects him to make the payments no matter what.

Now it's sitting there and he can't use it. So it was kind of annoying to him.

So I caught him at the annoying phase. He was just disgusted.

The thrill was gone.

Winston says he reaches out to the buyer's lender, TD Auto Finance.

I contacted a VP at the bank.

I said, this is my car. I have the title. You need a title.

He needs the title to register the car.

He's sitting paying on a car that's unregistered. What are you going to do

this? This is my car. It's stolen.

It's my vehicle. It's my property. I have the title.

He said he had to protect his buyer, and there's a transaction between him and

the buyer, and they're working on straightening the situation out, and

nothing they can do for me.

In a statement to American Greed, TD Auto Finance says the company employs

robust controls and procedures to detect potential fraud and promptly alert the

appropriate law enforcement authorities.

In the case of Emporio Motor Group, those controls and procedures worked as

designed, and we cooperated fully with authorities.

Winston learns that New Jersey law favors the buyer, not the consigner,

regardless of who actually holds the title.

The law is clear in New Jersey that if a retail consumer goes to a dealer and

buys a car, they are not obligated to research the title history for the

vehicle. The law allows them to assume that the dealer is able to sell and

convey good title to that vehicle.

Winston had hoped to get $65 ,000 out of his M6, but all it gets is stolen right

out from under him, allegedly by Bobby Kahn.

and eliminate me completely as if I don't exist now, and I'm completely

off the title, and now the car is titled by the new buyer in the state of

Illinois.

Next on American Greed, as Emporio Motor Group goes bust, Bobby Kahn goes

missing. A lot of dealers might perpetrate fraud when they know their

is circling the drain.

In this case, it looks like it was his business plan from the get -go.

By summer 2014, Emporio Motor Group clients are furious.

Car buyers say they can't drive their vehicles because Emporio won't send them

their titles.

That's because those titles are often still in the hands of consignors who say

Bobby Kahn has sold their cars right out from under them.

A lot of dealers might perpetrate fraud when they know their business is

circling the drain and going out of business.

In this case, it looks like it was his business plan from the get -go.

From December 2013 through September 2014, at least 75 Emporio

clients filed complaints with the Ramsey Police and Bergen County Prosecutors.

The local authorities just took their sweet time in really doing anything

this. And I kept getting back that they were putting the case together.

And that went on for probably better than three months.

We've since learned of as many as perhaps a dozen other people that went

Ramsey police over the span of nine months and were essentially told, you

civil dispute, we're not going to get involved.

The Ramsey police declined an interview request from American Greed, referring

questions about the case to the FBI.

The Bergen County Prosecutor's Office did not return our call.

Many Emporio Motor Group customers who feel their pleas for help aren't being

taken seriously go online to look for answers and warn others.

The word got out that there was this sort of Yelp community.

Right away I was able to get in touch with people.

I found there was this tremendous sort of network of victims.

Joan Verdon interviewed several Emporio clients who had posted on Yelp .com.

We immediately did a story saying there have been all these complaints about

Emporio Motor Group, Bobby Kahn, and they all seem to be saying the same

that people either bought cars, didn't get titles, or that they sold their cars

to Bobby Kahn and never received money.

In mid -September 2014, the New Jersey Motor Vehicle Commission suspends

Motor Group's license.

And then in October, the U .S. Attorney of New Jersey...

charges Abzal Bobby Kahn with wire fraud.

The indictment alleges one lender has lost $1 .7 million over the course of

21 auto loans to Emporio clients.

All banks have built -in safeguards to prevent these types of actions.

If it happens once, something really fell through the cracks. When it happens

-something times, it's not an accident, it's not a coincidence.

Total losses could stand as high as $7 million.

You would have the seller out money, the finance company out money, and the

buyer out money. There's not many people who were able to scam as well as he

did.

The FBI goes to arrest Bobby Kahn in late October.

By then, he's gone.

We have looked for him from that date, and we continue to look for him now.

I think the walls were closing in on him way too fast.

and that he couldn't handle it, and that's why he just left.

In Bobby Kahn's wake, some Emporio clients, like Peter Winston, feel they

no car and no recourse.

I'm contacting TD Auto Finance and asking them to solve this problem by

me restitution.

They keep telling me I should go back to the dealership, knowing that the

dealership is closed down and the owner of the dealership is a fugitive from the

law. Other buyers and sellers have reached private agreements for the cars

question. Brendan Kehoe now has the title to his dream Porsche.

I had paid $40 ,000 plus for the car. The gentleman who owned the car, when we

got in contact, I explained to him what the law was and that, you know, both of

us were going to lose. I'd have a depreciating boat anchor in my garage,

wouldn't have anything.

We reached a deal that I gave him additional $8 ,000 of cash out of my

and he brought me the legal title, and I managed to register it the next day.

But he hoped, for the sake of all Emporio clients, Abzal Bobby Kahn will

justice. Just remember, revenge is a dish best served cold, and everybody

crosses a dark street by themselves sooner or later.

That's what I will say to you, Bobby.

Sooner or later, I will find you.

Abzav Babi Khan is a U .S. citizen, but has ties to Pakistan, Dubai, Scotland,

and Canada.

The FBI is offering a $20 ,000 reward for information leading to his capture.

Next on American Greed, an entrepreneur sues Mark Zuckerberg and finds himself

in handcuffs.

Paul Teglia seems interested in one thing, which is making money by suing

Facebook.

3 ,000 miles from Silicon Valley in the hills of western New York, a man named

Paul Seglia fancies himself a high -tech visionary.

He claims to be the rightful owner of half of Facebook, thanks to a gamble he

took back in 2003 on its young, unknown founder, Mark Zuckerberg.

Now the company is worth hundreds of billions of dollars.

There are more active Facebook users than people in China.

But to become a billionaire himself, Paul Seglia will have to do battle with

Mark Zuckerberg.

Seglia grows up in Wellsville, a town of about 5 ,000 people.

This is the Wellsville High School class of 91 senior yearbook.

Every yearbook has a senior poll, most respected, most likely to become

president. And Paul Seglia was named most corrupt.

A lot of his high school friends were saying he always had some kind of a

going or some kind of a make -money -quick business idea, and that was kind

his M .O.

Paul Seglia goes from corrupt kid to full -on felon at 24 when he pleads

to possessing psilocybin, also known as magic mushrooms.

Seglia spends the next 10 years on probation, but he can't seem to stay out

trouble.

In 2005 in Florida, he pleads no contest to trespassing.

A sheriff claims he was giving potential buyers a tour of property in an orange

grove, land he didn't own.

Seglia eventually makes his way back to Wellsville, where he marries a hometown

girl and starts a family.

In between big ideas, he gets by as a landlord.

One of his houses was a couple houses down from where I lived, and he did the

bare minimum to get that house livable.

His ability to do some work, you know, kind of kept him going while he was

trying different businesses to make the big dollar.

His quest for a payday continues in 2009 when Segalia launches Allegheny

Pellets. The company intends to make and sell wood pellets.

a common home heating fuel in upstate New York.

He accepts roughly $200 ,000 in prepaid orders, largely from Internet customers.

This is where you put the pellets in. The wood pellets themselves, it's just

compressed sawdust and wood chips, and it's really quite small.

Rhiannon Sisson of Sisson's Chainsaws and Stoves in nearby Bolivar learns from

her customers that there's a new player on the pellet scene.

We started getting into that time of year and, you know, it's getting more

difficult to get the wood pellet fuel itself.

And then we hear about this, you know, gentleman who is pre -selling for these

pellets. We're thinking, how does he have these pellets? We were kind of

questioning it, but we thought, you know, maybe he knows something that we

know. But in September of that year, Seglia has bad news.

He tells his customers their pellets won't arrive on time, but he doesn't

refunds. Paul sent out a letter saying that he had layoff, so they were behind

on orders. But, you know, when I visited him and saw the operation, it was Paul.

I'm not sure who his employees were.

In December 2009, the New York Attorney General shuts down Allegheny Pellets and

accuses Seglia of fraud.

Although the case is later settled, the way Paul Seglia tells it...

This legal woe leads to his good fortune.

During his legal proceedings with the Attorney General, he was going through

some paperwork and some old folders.

He told me he was looking for anyone who had owed him money over the years, and

that's when he found his contract with Mark Zuckerberg.

Back in 2003, Zuckerberg is a Harvard freshman majoring in psychology.

Seglia is 29, and working on his latest big idea,

Street Facts.

The company plans to photograph, measure, and map intersections, and then

access to its database to insurance companies investigating accidents.

Seglia posts an ad on Craigslist looking for a coder, and Zuckerberg responds.

In April 2003, Seglia meets the 18 -year -old freshman in Boston, and the two

sign a contract for Zuckerberg to work on Street Facts.

That much they agree on.

But Paul Seglia's attorney, Joseph Alioto, says in addition to the coding

for Street Facts, Zuckerberg pitches Seglia on his own little idea.

He calls it the Facebook.

I just figured it would be really cool if there was some website where I could

go to that would tell me...

a bunch of information about my friends and the people around me.

Alioto says Seglia invests $1 ,000 in Zuckerberg's pet project, a good one,

perhaps with limited potential.

Mr. Seglia thought that this was something confined to the college and

selling, basically, or attempting to sell things like mugs and sweatshirts

things like that.

And so he made that particular agreement, but without knowledge of what

turn out to be.

So after allegedly stumbling upon the old contract, Paul Seglia filed suit.

Seglia remembered this kid who he had done work with when he was a college

freshman and decided now that Facebook was worth billions, he was going to go

after some of that money.

CNBC senior correspondent Julia Boorstin notes that Seglia isn't the first

person to stake a claim to Facebook.

In 2009, Zuckerberg settled with Eduardo Saverin.

Saverin was a fellow student of Zuckerberg's at Harvard. He also was a

-founder of Facebook.

The issue there was that Saverin said that Zuckerberg had unfairly diluted his

stake in the company.

The Winklevoss twins' suit against Mark Zuckerberg became very famous in a

Hollywood movie called The Social Network.

We were shocked to see our idea being presented as thefacebook .com.

That suit was settled by Zuckerberg giving the Winklevoss twins $20 million

cash and 1 .25 million Facebook shares.

But Borsten says Seglia's claim is very different.

It was seven years after he said he and Mark Zuckerberg had done business

together. By then, Facebook was worth $23 billion.

To prove his claim, Seglia submits to the court a photocopy of a two -page

contract.

He says it's all spelled out in black and white. He rightfully owns 50 % of

Facebook.

Next on American Greed.

Mark Zuckerberg's signature is on the contract.

It just kind of gave you goosebumps.

Want inside information from the show?

Join the Greed social network.

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We'll be right back.

In July 2010, at a court hearing in Buffalo, ownership of Facebook is on the

line. The company is worth $23 billion.

Entrepreneur Paul Seglia claims he owns half of the social media company, and he

produces this work -for -hire contract to try to prove it.

A Facebook attorney tells the judge,

Our client entered a contract with Seglia.

Whether he signed this piece of paper, we are unsure at this point.

Days later, in an interview with Diane Sawyer, Mark Zuckerberg is asked about

his lawyer's unsure statement.

If we said that we were unsure, I think that was likely taken out of context

because I think we were quite sure that we did not sign a contract that says

that they have any right to ownership over Facebook.

The very next day, Paul Seglia fires back at Zuckerberg on, of all places,

Facebook.

He writes...

Saw Mark on Diane Sawyer last night. He says, we are quite sure we didn't sign.

It seemed pretty hard for him to get that out without choking up.

Two days after the interview, Facebook issues this written statement.

Mark has made it clear that Sekulia's claims are absurd, and we strongly

the contract is forged.

By April 2011, Facebook's value has swelled to $65 billion.

Paul Seglia ups the ante.

To bolster his assertion that his investment is real, he submits to the

what looks like email excerpts.

They claim to be back and forth with him and Zuckerberg. In one of the messages

dated July 2003, Mark Zuckerberg purportedly asked Seglia for permission

the coding work he's done for Street Facts.

On Facebook.

It reads, I've been tweaking the search engine today and I'm pleased with its

results. I'd like to use it for the Harvard site. I think it will really

people find each other.

Even if they spell names incorrectly, would it be agreeable with you if I

the source code?

Thanks.

In another one, dated January 2004,

Seglia appears to berate Zuckerberg for supposedly missing Facebook's launch

deadline.

He writes, I'm starting to think you just blew that money mark. You know

perfectly well that you can't just take a person's investment and then spend it

on women and beer or whatever you do up there in Harvard.

Everyone was really interested to see these emails, but there was no evidence

that they were actually real.

In June 2011, an attorney for Facebook in Zuckerberg asked the court for

permission to run scientific tests on the paper contract.

and to search through Seglia's electronic media.

There is no question on this earth that he never signed a contract with Paul

Seglia that had anything to do with Facebook, period.

If, however, when he manufactured, doctored, cut and pasted a bogus

document to make it appear as if this was a Facebook contract, but then

concocted... Bogus emails, which he did, those are emails that were caged over

because he's committing a fraud on the court.

The magistrate judge approves testing on the paper contract and also signs off

on a digital forensics investigation.

Zeglia is ordered to turn over his email passwords and all electronic devices.

The case quickly becomes a tale of dueling experts.

Mark Zuckerberg, Facebook, and their experts declined to speak to American

Greed.

So American Greed asked Chicago -based ProTech International to independently

review and explain the findings of Facebook's experts.

The ProTech team includes the founder of the Illinois Attorney General's High

Tech Crimes Unit, as well as a former FBI digital forensics investigator and a

former FBI agent.

Mark Zuckerberg's team did a very good job, very thorough.

They threw everything at it from investigative side to every type of

examiner, linguistics, to look at the emails.

Facebook's experts point out the spacing between the columns.

It's quite different from page one to page two.

The paragraph spacing on page one is messy, but on page two is neat.

And pages one and two use different fonts.

Perhaps most peculiar, the word Facebook is mentioned three times on page one of

the work -for -hire contract, but never appears on page two.

Zuckerberg's legal team suspects Segley may have faked a new page one to go with

the real page two from the Street Facts Project.

Everything's very expensive and time -consuming, and Mark Zuckerberg threw

everything at it, like he should.

However, Seglia's team chalks all that up to the sloppiness of a layman

preparing his own contract. They say their own expert findings prove the

contract is authentic.

One, that the signatures and the initials were Mr. Zuckerberg's.

Two, that the first page and Mr. Zuckerberg's initials match the

indentations on the second page.

That the paper...

came from the same mill and the same run.

That even the staples shows the documents were originally together.

Facebook's digital experts report scouring Seglia's email accounts and

finding any of those supposed emails.

They claim those messages only turn up in Microsoft Word documents, which show

evidence of data tampering.

Facebook and Zuckerberg's experts believe they are entirely bogus, the

of Seglia's imagination.

Any time you have inconsistencies, it casts doubt onto, well, are these

authentic or not? And you kind of start with one thing, and then if you start

finding more, then the evidence kind of builds up, and you kind of can come to

that conclusion that something's been manipulated.

Next on American Greed, a smoking gun discovery and Paul Seglia under arrest.

In July 2011, while examining a hard drive from Seglia's parents' home,

Facebook and Zuckerberg's digital forensics experts say they find a

Inside a sent items folder, the experts discover two e -mails sent back in 2004

to an attorney in Chicago from his mother viewer's account.

The first has the subject line, page one of two for street facts contract with

Mark. The body of the message is signed Paul.

Attached to each message is a low -resolution scanned image of a contract,

doesn't mention Facebook.

Sent items are usually really important for our examinations.

People forget is there.

Facebook and Zuckerberg get a court order to search the e -mail server at

attorney's office.

There they find the same exact e -mails and contract, still there seven years

later. When you can find evidence in independent parties or in independent

places that corroborate your version of events, that makes it very powerful.

The smoking gun is a two -page document titled Street Facts.

When the second pages of the street facts and work -for -hire contracts are

overlaid, they are virtually identical.

The street facts contract resolution is poor, so it's hard to read, but it's

clear enough to see there is no mention of Facebook.

Also found among Zeglia's electronic media is this copy of a handwritten note

from the attorney, which appears to corroborate the poor quality.

It says, Please, please fact me the contract, because I can't read the one

earlier.

That matches up perfectly with the Street Facts documents that are found

are low -res, so I think it provides some significant corroboration to the

that the Street Facts contract is the contract.

But Seglia claims he's been hacked.

He says the smoking gun contract is a fake, which may have been planted by

Zuckerberg himself.

Mr. Zuckerberg's lawyers immediately knew that they wanted to get the

computer. And that's what we wanted to also question Mr. Zuckerberg about.

He's an expert hacker.

As the case moves into its second year, Facebook soars higher.

In January 2012,

Mark Zuckerberg becomes Facebook's chairman of the board.

And in May, the company launches its initial public offering.

This is an awesome moment.

Remember, stay focused and keep shipping.

Facebook is now worth $104 billion.

In October, the site marks 1 billion users.

And the man who claims to own half of it is arrested.

Paul Seglia is criminally charged with mail fraud and wire fraud and accused of

manufacturing evidence in his civil case against Facebook and Zuckerberg.

Seglia claims Zuckerberg's lawyers are calling in favors from friends in high

places. What else do you have to say? Anything?

I say I will have a full statement later for an outreach.

Why? Why do you say that?

Charges from the Southern District of New York, where Gibson Dunn, the world's

dirtiest law firm, seems to be able to pull any strings they want to get their

corporate grimy clients out of any situation.

Seglia pleads not guilty.

While he awaits his criminal trial, Seglia must wear a GPS ankle monitor,

surrender his travel documents, and stay near his home in Wellsville, New York.

On March 26, 2013, exactly 1 ,000 days after Paul Seglia first filed suit,

Magistrate Judge Leslie Faccio recommends Seglia's civil case be

During the past three years, Judge Faccio has weighed more than 5 ,000

court filings. He issues a 155 -page report to explain his decision.

In it, he writes that evidence establishes Seglia's work -for -hire

quote, a recently created fabrication.

The judge effectively said the case had no merit because the key evidence had

been forged.

As for the smoking gun discovery, the contract which makes no mention of

Facebook, the judge writes, clear and convincing evidence establishes the

facts document's authenticity.

This was not a case that was dismissed lightly.

The judge really wanted to make sure, by digging deep into the communication

between Seglia and Zuckerberg, that Seglia's claims were false.

However, the criminal case against him for mail fraud and wire fraud moves

forward.

In March 2015, just two months before his trial is set to begin, Paul Seglia

decides to cut and run.

Paul was very smart. He had his cell phone ready.

He took a photo of the bracelet on his ankle.

He then removed it and put it back together and called the authorities to

there was a small problem with the bracelet.

It's on. I'm fine. And then they sent him a photo of the bracelet on his

Instead, Seglia fastens his ankle monitor to a device he's attached to his

ceiling. The idea is to make it look like he's moving about his house.

Seglia rigs it to a timer and hits the road.

Unfortunately for Paul, the timer failed on him, and that's when they realized

something was going on.

A fugitive's task force arrives, and officers force their way inside.

There they find Seglia's malfunctioning machine, motors still rattling,

bracelets still.

The man who took on Facebook has vanished, along with his wife, two

and the family dog.

Paul Seglia is a fugitive.

Although he has surrendered his passports, he has dual citizenship and

Ireland. The U .S. Marshals are offering a $5 ,000 reward for information

leading to his capture.

In Seglia's absence, his legal team petitions the U .S. Supreme Court in

November 2015, asking it to reopen his dismissed civil lawsuit.

But in January 2016,

the justices declined to hear his case, leaving Paul Seglia on the run with no

hope for a Facebook payday.