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Briefing for Representative Jim Jordan (OH-4th)
Critical Constitutional Matter for the House Oversight Committee
Prepared October 19, 2012
American and Russian Opportunists Undermining U.S. Sovereignty and Corrupting U.S. Financial and Judicial Systems
Tom Clancy couldn’t make this up. Sadly, the facts seem to point to a self-styled Facebook “ecosystem” of principals who are pressing an internationalist agenda that undermines U.S. sovereignty and corrupts U.S. financial and judicial systems. They are also exploiting the innovations and stolen intellectual property from Ohio-based Leader Technologies to achieve their goal.
Facebook has one billion users—three times the U.S. population. Their continued unscrupulousness cannot be anything other than an external shock to our financial system. Congress needs to act to prevent more damage.
Lawrence Summers
Lawrence Summers, who has held numerous senior positions in both the Presidents Bill Clinton and Barack Obama White Houses, looms large in this Facebook “ecosystem,” as do two of his protégés, American Sheryl Sandberg and Russian Yuri Milner. Summers recently popped up in Silicon Valley as a newly-appointed “special adviser” to Facebook director, Marc Andreessen; coincidentally while Andreessen was completing a dubious $1 billion Facebook acquisition of Instagram — a company with 13 employees and no revenue. Andreessen was (and continues to be) a director in both companies. Summers also accepted appointment to the board of a financial transactions company, Square — a curious development given Facebook’s evident plan to make Facebook Credits an unregulated global currency. Summers’ interconnections within the Facebook “ecosystem” are astounding, most notably Summers’ 20-year World Bank associations with (a) Facebook COO Sheryl Sandberg, (b) Facebook’s second largest investor, Moscow-based Yuri Milner and his companies Digital Sky Technologies and DST Global, and (c) Goldman Sachs and Morgan Stanley to whom Summers provided $20 billion in U.S. taxpayer bailout funds while chief of President Obama’s National Economic Council.
Goldman Sachs & Morgan Stanley
Goldman Sachs is an equity partner in Digital Sky Technologies (aka DST Global) with Yuri Milner and Russian oligarch Alisher Usmanov. This partnership appears to have been created prior to the $20 billion bailout of Goldman Sachs and Morgan Stanley by the U.S. taxpayers in 2008. DST has invested up to $3 billion in Facebook. Goldman Sachs’ involvement in DST raises the obvious question as to whether DST may have used TARP funds to invest in Facebook. Goldman Sachs obfuscated when asked by Senator Chuck Grassley on July 24, 2010 where the bailout funds went that Goldman distributed to its partners overseas. Who in this administration said that was permissible? Goldman Sachs also underwrote a multi-billion dollar private market in Facebook’s insider stock sales while blocking American investors from participating. Fortune said the DST funds had “unknown origins.” Did Yuri Milner use TARP funds received from Goldman Sachs to invest his billions into Facebook stock? Milner was involved in the late 1990’s in Bank Menatep which was caught laundering billions for the Russian mob as well as diverting $10 billion in World Bank and IMF funds.
Economist Code of Ethics
A recent gathering of American economists were highly critical of economists who use their knowledge of global financial systems for personal gain. Where does Lawrence Summers fall along the ethical continuum involving “recommend[ing] policy prescriptions that served their clients' interests, at the expense of the economy as a whole?”This Wall Street Journal article continued “A leading group of academic economists has adopted conflict-of-interest rules in response to criticism that the profession not only failed to predict the 2007-2008 financial crisis but may actually have helped create it.”1
Sheryl Sandberg; Yuri Milner; Moscow State University; The Russian Academy of Sciences; DST (aka Digital Sky Technologies); Oligarch Alisher Usmanov
The three figures in the Facebook “ecosystem”—Summers, Sandberg, Milner—appear to be at the epicenter of an international scheme to fleece the American public by using corrupt legal tactics, steal intellectual property required to implement the collusion, and establish an unregulated global money system. Remarkably, these three individuals played a central (and quite destructive) role in the early 1990’s in the failed Russian voucher system that spawned the current oligarchy economy in the former Soviet Union. Now they have one billion current users of their core (stolen) technology and would have a significant impact on the U.S. and world economies.
The curriculum vitaes of these individuals follow, compiled from publicly available sources.
Numerous Leader shareholders reside in Ohio’s 4th Congressional District which Congressman Jim Jordan represents.
Are the facts, opinions and circumstances herein merely a random string of unflattering coincidences, or are they evidence of a more nefarious agenda?
Click the image to enlarge the Summers-Sandberg-Milner biographies timeline
Figure 1: Biographies of Lawrence Summers, Sheryl Sandberg and Yuri Milner
Timeline
1992
Between 1991 and 1993 “
wunderkind professors of economics” including
Larry Summers were unleashed as “ersatz policy ‘experts’” by the
World Bank to implement their “flawed” plan for privatization of banking in the
Soviet Union.
2 This reckless voucher system resulted in the emergence of the current system of corrupt Russian oligarchies controlled by the
Kremlin; oligarchies that Summers is now exploiting.
Click image to enlarge
Figure 2: Summers, Sandberg and Milner were proponents of a Harvard-wunderkind-led, neo-classical Russian voucher privatization system that devastated reform and created the current oligarch system. They appear poised to finally capitalize on this tragedy via the Facebook “ecosystem.”
1993
In 1993
Larry Summers with
Sheryl Sandberg’s assistance engaged the energies of a then-Wharton MBA student, Russian
Yuri Milner, to write the
World Bank paper “Voucher Investment Funds” advocating the
Russian voucher system3 in their “insane and unnecessary haste.”
4
1994
While at the
World Bank working with
Larry Summers and
Sheryl Sandberg,
Yuri Milner met
Russian oligarch Mikhail Khodorkovsky. He returned to Russia and worked for Khodorkovsky who owned
Bank Menatep which in 1999 became involved in the diversion of $4.8 billion in
IMF funds.
5 This money-laundering of an estimated $10 billion by the Russian mob via Bank Menatep also involved
World Bank funds.
6 Tellingly, Yuri Milner does not disclose this association in any of his current biographies. Milner’s activities between 1994 and 2007 are murky.
1999-2001
Sheryl Sandberg served as Larry Summers’ Chief of Staff at the U.S. Department of the Treasury while he was Secretary of the Treasury under President Bill Clinton.
Click image to enlarge
Figure 3: While Summers and Sandberg worked for President Bill Clinton in the Treasury Department, Summers’ protégé Yuri Milner worked at Bank Menatep, which laundered billions of dollars for Russian organized crime and diverted $10 billion in funds from the World Bank and the IMF.
2001
Between 2001 and 2003 Fenwick & West LLP represented Columbus, Ohio inventor Leader Technologies as counsel and was privy to Leader’s trade secrets.
2002
In late 2002
Leader Technologies filed for patents on its innovations, now called “social networking.”
7
Earlier, in early 2000, Leader's patent attorney James P. Chandler, III began learning about Leader's innovations after he had entered into multiple legal attorney-client engagement letters, promising to keep Leader's innovations strictly confidential. Hindsight shows that as fast as Chandler was learning about Leader's innovations, he was secretly feeding them to the IBM Eclipse Foundation, who was in turn feeding the inventions to a rogue C.I.A. operation who was in the process of weaponizing the Internet. Zuckerberg and Facebook were one of their creations. Zuckerberg was a C.I.A. stooge.
2003
During 2003 Leader Technologies prepared its innovations for market. New testimony reveals that Mark Zuckerberg and his Harvard roommates Dustin Moskowitz and Chris Hughes learned about Leader technology in early 2003, stalled other students working on other “facebooks” during the year, received a copy of Leader’s platform source code on about Oct. 28, 2003, and used it to launch Facebook on Feb. 4, 2004.
2003
Oct. 23
From Oct. 23, 2003 to Sep. 15, 2004
The Harvard Crimson carried 22 news articles about 19-year old sophomore
Mark Zuckerberg. Only
Bill Clinton and
George Bush received more mentions. Al Franken received 16, Google 14, Microsoft 10, Bill Gates and Pope John Paul II 3 each. By comparison, the two other “facebooks” at Harvard, namely the Winklevoss Twins’ Harvard Connection and Aaron Greenspan’s houseSYSTEM, received 4 mentions each.
Larry Summers was President of Harvard during this time,
8 creating the reasonable speculation that only he could have organized such inordinate coverage.
2004
May
By May 2004 former
PayPal co-founder
Reid Hoffman had become a first investor and business coach for
Mark Zuckerberg. He has just recently started claiming that he was the first outside investor in Facebook and introduced Zuckerberg to
Peter Thiel, his fellow former PayPal executive. This account is markedly different from earlier accounts that credit Napster founder
Sean Parker with the introduction. The story morphs with each new telling. If Hoffman did coach Zuckerberg at Harvard, this contradicts Zuckerberg’s testimony in
ConnectU where he makes no mention of Hoffman.
9
2004
Jun
In Jun. 2004, former PayPal co-founder Peter Thiel is introduced to Mark Zuckerberg by Reid Hoffman or Sean Parker (depends upon who is telling the story) and immediately invests $500,000.
2004
Jun 24
Leader Technologies’ patent on social networking publishes for the first time at the U.S. Patent Office. Zuckerberg hires Stephen Dawson Haggarty because the Leader code is too sophisticated to change. These changes in Groups functionality are heralded.
2005
May 26
James W. Breyer and
Accel Partners LLP announce publicly a $12.7 million investment in
Facebook.
10
2005
Oct 26
James W. Breyer of
Accel Partners LLP and
Mark Zuckerberg solicit to induce third party developers at Stanford University to build apps on the
Facebook framework stolen from
Leader Technologies for the first time.
11
2006
Nov 21
On Nov. 21, 2006 Leader Technologies received U.S. Patent No. 7,139,761; the platform that is the Facebook engine.
(ca. 2002-2009)
Goldman Sachs has never disclosed exactly when they became a substantial investor in Moscow-based
DST (aka
Digital Sky Technologies) along with Russian oligarch
Alisher Usmanov and
Yuri Milner, but they are believed to be “among DST’s five investors.”
12 Approximately 70% of DST’s employees and executives in London and Moscow are former Goldman Sachs employees.
13
2007
Oct 25
Microsoft invested $250 million in
Facebook.
14 Microsoft is implicated in the cover up of investments by the judges in Facebook and other conflicts of interest at the
Federal Circuit in
Leader v. Facebook.
15
2008
Mar 24
Sheryl Sandberg left Google (where she oversaw the creation of Gmail) and became Chief Operating Officer at Facebook.
2008
Oct 13
Facebook filed for an SEC exemption from the 500 shareholder rule. The exemption filed by Fenwick & West LLP, former corporate counsel to Leader Technologies.
2008
Oct 14
Facebook received an
SEC exemption from the 500 shareholder rule.
16 The ostensible purpose of the exemption was with regard to the “employee benefit plan” and “for compensatory purposes,” although hindsight finds deceptive language including the inserted phrase on page 2: “(and may in the future grant RSUs [Restricted Stock Units] to directors and certain consultants as well)” and “could in the future have more than 500 holders of RSUs” and “only be issued to employees and directors of the Company and consultants.” No reasonable person would read this disclosure to include a $3 billion dollar
Goldman Sachs “special purpose vehicle” to make a private “pre-IPO supplement” market that locked out American investors.
See Jan. 7, 2011.
The one-day turnaround of this
SEC exemption is remarkable.
2008
Nov 4
Goldman Sachs,
Morgan Stanley and
State Street Corporation received $22 billion in bailout funds from U.S. taxpayers in the “First Tranche” of the
Emergency Economic Stabilization Act of 2008 (EESA).
17 Former
FDIC Chief Sheila Bair says it was not necessary. Could the agendas finally be revealed in this briefing?
18
2008
Nov. 19
Leader Technologies sues Facebook for patent infringement captioned
Leader Technologies, Inc., v. Facebook, Inc., 08-cv-862-JJF-LPS (D.Del. 2008).
19
2008
Nov. 23
Larry Summers nominated by
President Barack Obama to head of the
National Economic Council despite criticism that Summers played a role in the 2008 economic meltdown.
20
Click image to enlarge

Figure 4: Summers and his protégés make their moves to consolidate their holdings in the Facebook “ecosystem” having (a) stolen the Facebook platform technology from Leader Technologies, (b) fleeced a $3 billion private market of investors to pump up the pre-IPO valuation to $100 billion, and (c) fleeced the public market again by raising over $10 billion in cash at an inflated valuation while the insiders cashed out over $13 billion of their shares on Day 3 of the IPO. Yuri Milner alone sent about $3.79 billion back to Moscow. Accel Partners LLP and James W. Breyer pocketed $6.5 billion.
2009
May 26
Mark Zuckerberg announced a $200 million investment from
DST Moscow and
Yuri Milner, arranged by his new COO,
Sheryl Sandberg. Zuckerberg said Facebook is relying on DST for its
Facebook Credits strategy.
21
Figure 5: Facebook Credits Word Mark - The new world currency?
USPTO, Ser. No. 77934145, Filed Feb. 11, 2010.
2009
Jul. 24
Fenwick & West LLP discloses
Leader Technologies’ patent as a prior art reference on
Marc Andreessen’s social networking patent applications, but subsequently fails to do so on all of Facebook 700+ patent applications. This
willful fraud, called “inequitable conduct” in the patent world, if true, created a strong motive for Fenwick & West to undermine Leader Technologies, their former legal client in 2001-2003.
22
James W. Breyer: His money is not on the United States. (Breyer extracted $6.5 billion on Day 3 of the IPO at $37.58 per share)
2010
Feb. 1
Facebook’s Chairman and largest investor James W. Breyer, Managing Partner of
Accel Partners LLP Palo Alto, CA said in Munich, Germany that the decline of venture investing in the U.S. is “probably a good thing” and says there is “enormous opportunity globally” and that new venture capitalists should be “on a plane to London, Bangalore and Beijing, and not necessarily Palo Alto, California;” apparently selling the U.S. short.
23
Collusion with Foreign Powers Is Destabilizing U.S. Financial Interests and Property Rights
2010
Jul. 24
Goldman Sachs disclosed that they sent $4.3 billion of the taxpayer stimulus funds overseas.
24 Both
Goldman Sachs and
Morgan Stanley have also admitted using
TARP funds to pay executive bonuses.
25 Given this questionable conduct in supporting concealed “ecosystems,” did they also send money to their
DST-Moscow business partners? Were some of these funds used in Goldman’s Jan. 2011 self-described multi-billion dollar “pre-IPO supplement” private market by DST-Moscow,
Yuri Milner and tight-with-the-Kremlin
oligarch Alisher Usmanov26 (who became the second largest
Facebook stockholders behind
James W. Breyer and
Accel Partners LLP)?
2010
Jul. 27
The
Leader v. Facebook patent infringement trial results in a split verdict.
Facebook was found guilty of infringement on all 11 of 11 counts.
Leader Technologies lost on a dubious “on-sale bar” claim.
27 Overturn of the jury seemed likely given the jury’s admission to the judge that they had no evidence and the “clear and convincing” burden of proof is a “heavy burden.”
2010
Aug. 5
Judge Leonard P. Stark’s appointment by President Barack Obama was confirmed by the U.S. Senate, just nine (9) days after the Leader v. Facebook split verdict.
2011
Jan. 3
Goldman Sachs uses the
SEC exemption obtained by
Fenwick & West LLP on Oct. 14, 2008, which was created as a “special purpose vehicle” to pool thousands of investors, but count them as one investor, and make a private market in Facebook insider stock.
28 Goldman Sachs then infused $500 million into
Facebook; $50 million from Goldman itself, and $450 million from
DST Moscow. This investment pumped Facebook’s valuation to $50 billion.
Fortune magazine described the source of
Alisher Usmanov’s funds as “not clear.”
29 Tellingly, Fenwick does not disclose such a “special purpose vehicle” intent to the SEC.
See Oct. 13-14 2008.
2011
Jan. 18
Goldman Sachs “slammed the door on U.S. clients” (
The Wall Street Journal) from participating in the private offering of
Facebook stock after receiving inquiries from the brokerage community about the 500 shareholder rule.
30
Longstanding SEC rules required
Goldman Sachs to have counted each of these pooled investors separately. Otherwise, brokerage houses could create private markets for any client by first buying the client’s stock, subdividing the stock themselves, then make their own private, unregulated stock exchange—which is exactly what Goldman did. Consequently, by the rules other companies must follow,
Facebook became a
de facto, noncompliant public company in January of 2011. Nonetheless, the 2008
SEC exemption request by
Fenwick & West LLP appears to have been the ruse that Goldman Sachs would use as its ostensible authority to pursue this private market; effectively taking Facebook over the 500 shareholder rule five-fold (this number had never been disclosed; including not in the S-1).
Facebook used $1 billion of this unregulated pre-IPO money to make the dubious purchase of
Instagram in which
Larry Summers popped up suddenly as a
Marc Andreessen “special adviser.”
2011
Mar. 14
Judge Leonard P. Stark refused to set aside the on-sale bar verdict in Leader v. Facebook; forces Leader Technologies to appeal.
2011
Mar. 31
DST’s Yuri Milner of Moscow, Russia, purchased a 25,000 square foot, 11 acre Silicon Valley mansion for $100 million; called “one of the most expensive homes in the U.S.”
31 More use of TARP funds?
2011
Jun. 28
Goldman Sachs announced it would outsource 1,000 American jobs to
Singapore.
32
Fenwick & West LLP—Material Securities Nondisclosure
2012
Feb. 1
Facebook,
Goldman Sachs,
Morgan Stanley and
Fenwick & West LLP issue the first of many iterations of the Facebook S-1 registration and
systematically failed to disclose the risks to investors associated with the verdict of “literal infringement” on 11 of 11 counts of patent infringement
33 of
Leader Technologies’ U.S. Patent No. 7, 139,761.
34
Fenwick & West LLP—Material Breaches of Attorney-Client Privilege
2012
Apr. 16
Fenwick & West LLP’s attorney
Tyler A. Baker, speaking for Managing Partner
Gordon K. Davidson (the lead Facebook IPO attorney;
See Facebook S-1 tombstone),
35 denied any conflict of interests as
Leader Technologies’ corporate counsel and close collaborator with Leader’s patent attorney
Professor James P. Chandler during the 2001-2003 when Leader’s patents were being prepared. Leader Technologies said that Fenwick did not seek a
conflicts waiver before agreeing to represent Facebook. Leader had given Fenwick & West LLP copies of Leader’s invention source code for their client files to which multiple Fenwick personnel had access.
2012
May 8
On the same day that Facebook began its IPO Road Show in New York City, the Federal Circuit Court affirmed Facebook guilty of “literal infringement” on 11 of 11 counts, but refused to overturn the jury’s dubious “on-sale bar” ruling in Leader v. Facebook. Leader petitioned for rehearing citing the numerous mistakes of law. See Jul. 27, 2010.
2012
May 22
Day 3 of the IPO:
Facebook insiders cashed in $13.26 billion of their shares in a
coordinated sell-off at $37.58 per share. Facebook Director
James W. Breyer and his company
Accel Partners LLP cashed in $6.5 billion of their Facebook stock. The sell-off also included
Microsoft ($246 million),
Peter Thiel ($633 million),
Mark Zuckerberg ($1.13 billion),
Goldman Sachs ($914 million),
Meritech Management ($263 million) and
Yuri Milner / DST / Digital Sky Technologies / Mail.ru ($3.79 billion).
36
Material Undisclosed Judicial Conflicts of Interest
2012
May-Jun.
Judicial financial disclosure filings revealed that at least two of the three
Leader v. Facebook judges, namely
Presiding Judge Alan D. Lourie37 and
Judge Kimberly A. Moore,
38 have substantial
undisclosed investments in Facebook.
39
2012
Jun. 29
Lawrence Summers appears, unexpectedly according to the financial press, as “special adviser” to
Marc Andreessen at
Andreessen-Horowitz just in time to cash in on the dubious $1 billion
Instagram purchase by
Facebook.
40
2012
Jul. 10
Internet pioneer, inventor and former Sun Microsystems Director of Network Architecture,
Dr. Lakshmi Arunachalam files an
amicus curiae (friend of the court) brief on behalf of the public, pointing out the egregious mistakes of law in
Leader v. Facebook.
41 Her motion was
never docketed by the
Clerk of Court Jan Horbaly, but was nonetheless denied by the Court.
Material Evidence Withheld by Mark Zuckerberg; Federal Courts Are Coddling Facebook42
2012
Jul. 19
Facebook experts reveal in the
Paul Ceglia v. Mark Zuckerberg litigation that
Mark Zuckerberg concealed 28 computer hard drives and
Harvard email archives in
Leader v. Facebook. The
Federal Circuit Court ignored this explosive new evidence.
43
2012
Jul. 27
Dr. Arunachalam files a renewed motion pointing out the egregious and undisclosed conflicts of interest inside the Court.
44 This motion was
never docketed by the
Clerk of Court Jan Horbaly.
2012
Aug. 10
Federal Circuit Court issued a surprising four-page Order denying Dr. Arunachalam’s July 27, 2012 renewed motion (even though the Clerk of Court had never docketed it). The Order containing numerous false and misleading statements evidently designed to cover-up judicial misconduct.
2012
Aug. 21
Facebook director
Peter Thiel dumped another $400 million of his
Facebook shares on top of the $633 million he dumped on Day 3 of the IPO prompting
CNBC’s Jim Cramer to ask live on camera “where’s the outrage?”
45
Banana Republic Cronyism at the Federal Circuit
2012
Sep. 11
The Federal Circuit Bar Association filed a Request to have the Aug. 10, 2012 Order be made precedential. This move would essentially
absolve the judges of their wrongdoing in this case.
46 Four of Facebook’s attorneys and Microsoft, one of Facebook’s largest shareholders, populate the “Leaders Circle” at this bar association.
See below.
2012
Sep. 18
Amicus Curiae Dr. Arunachalam responded with a stinging critique of
The Federal Circuit Bar Association’s attempt to cover-up the judicial misconduct and failure to disclose conflicts of interest. This motion was also
never docketed by
Clerk of Court Jan Horbaly. The Bar Association also failed to disclose its own conflicts of interest in that four different Facebook law firms, namely
Fenwick & West LLP,
Gibson Dunn LLP,
Orrick Herrington LLP,
Weil Gotchal LLP, participate in the Bar Association’s “Leaders Circle” and one of
Facebook’s largest shareholders,
Microsoft, is a director of the Bar Association.
47 Such nondisclosure renders the Bar Association’s Request dubious at best.
Naked Corruption at the U.S. Patent & Trademark Office; Inequitable Conduct
2012
Oct. 17
The U.S. Patent Office Patent Trial and Appeal Boards has just
overruled its
two Examiners’
two reexamination rulings affirming Leader patent claims over the prior art in
U.S. Patent No. 7,139,761. They are attempting to have an Examiner invalidate ALL of Leader’s 35 claims in an administrative decision (only 11 claims were asserted at trial). Such action by the Patent Office exhibits unconscionable favoritism and evident collusion. The action is a naked attempt to protect
Fenwick & West LLP and
Facebook from having their 700+ patent filings invalidated for “inequitable conduct” (fraud).
48 See Jul. 24, 2009.
James W. Breyer’s Self-fulfilling Prophesy
It also appears that the U.S. Federal Courts and U.S. Patent Office are equally supporting Breyer’s prophesy. If inventors and private property are not protected, then American innovation is not worthy of investment.
Or, is all this just “innocent” and “coincidental?”49
In closing are cautionary words from Professor Hy Berman, eminent American historian, and Professor Emeritus of History at The University of Minnesota, who served as a political adviser to former Vice President Hubert Humphrey and is a close friend of former Vice President Walter Mondale.
“As an American historian, I am particularly concerned by the implications of allowing powerful forces to violate intellectual property rights. Our economic and industrial development was made possible by inventors, innovators, scientist and engineers who developed the technology undergirding our national development. Through our patent and copyright protection system, these innovators were able to be rewarded for their efforts. If intellectual property theft by the powerful and well-connected is not stopped, future innovation is jeopardized.”50
Abuse of the Public Trust
Opportunism means consciously taking selfish advantage of circumstances with little regard for what the consequences are for others. The opportunism described herein uses the special knowledge vested in “Facebook ecosystem” cronies whereby the economists and lawyers involved use their knowledge of the weaknesses or our public institutions for their own selfish and illegal gain.
Will we permit such misconduct to continue, or will we act? Will we act to right the injustices perpetrated in this matter against both the American and Russian peoples. Will we act to stop this flagrant abuse of the public trust?
America Is The Land Of Opportunity,
Not Opportunism
The Fleecing of Propriety
The evident agenda of the principal cronies in the Facebook “ecosystem” is to establish a means of international exchange via Facebook Credits that is free of U.S. legal and banking regulations. They appear willing to go to whatever lengths necessary, legal and illegal, to achieve this goal.
If the Facebook “ecosystem” is allowed to succeed, they will do so having fleeced the American public three times:
- 2003-2004 theft of a validly issued U.S. Patent No. 7,139,761 invented by Leader Technologies, Inc., Columbus, Ohio;
- 2008 fleece of the American public by the so-called “Economic stimulus” whereby Summers, Breyer, Milner and their cronies received American taxpayer dollars in a “legal” transfer of wealth to their cronies; and
- 2012 fleece of the American public by the Facebook IPO whereby, once again, Summers, Breyer, Milner and their cronies took American investor monies in another “legal” transfer of wealth to their cronies?
The Facebook “ecosystem” has learned that in aggression there is profit. Has the American public had enough? Are we going to let these people succeed with their opportunism, their abuse of due process, their theft of property, their abuse of power?
Finally, shall we let these unscrupulous people continue to press their agenda to establish a “virtual” world currency called Facebook Credits or similar systems emerging from “London, Bangalore and Beijing” using stolen technology and funds fleeced from the American public?51
If Congress fails to act, a financial “army” of more than one billion Facebook users (more than three times the U.S. population) who are poised to undermine our country. What damages will their external shock cause to our already weakly growing, battered economy?
Available from Americans For Innovation and
Against Intellectual Property Theft
https://www.fbcoverup.com/docs/library/2012-10-19-Briefing-for-Representative-Jim-Jordan-OH-HOUSE-OVERSIGHT-COMMITTEE-American-and-Russian-Opportunists-Undermining-U-S-Sovereignty-and-Corruption.pdf
http://americans4innovation.blogspot.com
October 19, 2012
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Notice: If the media link is missing or broken, the www.fbcoverup.com link should have the document, unless otherwise noted. Several of the links have been completely removed.
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- Complaint. Leader Technologies, Inc. v. Facebook, Inc., 08-cv-862-JJF-LPS (D.Del. 2008); Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.) <https://www.fbcoverup.com/docs/cyberhijack/2008-11-19-COMPLAINT-Leader-Technologies-Inc-v-Facebook-Inc-08-cv-862-JJF-LPS-D-Del-2008-filed-Nov-19-2008.pdf>.
- Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 US 579 (Supreme Court 1993) at 595-597 (the trial judge must ensure the reliability of scientific testimony) <http://scholar.google.com/scholar_case?case=827109112258472814&q=daubert&hl=en&as_sdt=2,36>.
- David Ellerman. “Can the World Bank Be Fixed?” Univ. of California, Riverside, 2005 (citing John Maynard Keynes’ observations about the Russian Revolution and the “surprisingly apt” comparisons to Russia in the 1990’s) <https://www.fbcoverup.com/docs/library/2005-09-14-Can-the-World-Bank-Be-Fixed-by-David-Ellerman-Post-Autistic-Economics-Review-Issue-No-33-Article-1-pp-2-16-Univ-of-California-Riverside-Sep-14-2005.pdf>.
- David Ellerman. “Lessons From East Europe’s Voucher Privatization.” World Bank, 1999, fns. 2, 11 <https://www.fbcoverup.com/docs/library/1999-Lessons-From-East-Europe-s-Voucher-Privatization-by-David-Ellerman-World-Bank-1999.pdf>.
- Deposition of Michael F McGowan, Facebook forensic expert witness, Paul D. Ceglia v. Mark Elliot Zuckerberg, 1:10-cv-00569-RJA (W.D.N.Y. 2010), July 18, 2012 <https://www.fbcoverup.com/docs/cyberhijack/2012-07-19-Deposition-of-Michael-F-McGowan-Facebook-forensic-expert-Ceglia-v-Zuckerberg-1-10-cv-00569-RJA-WDNY-2010-19-Jul-2012.pdf>.
- Donna Kline. “Cover-up in Process at the Federal Circuit? Internet pioneer says the judges and clerk failed their ethical duties in Leader v. Facebook; Four Facebook law firms plus Microsoft are “leaders” in the Federal Circuit Bar Association who filed a request that would absolve the judges of conflicts; international and post-Soviet ties.” Donna Kline Now! Sep. 17, 2012 <http://www.scribd.com/doc/106196223/Cover-Up-in-Process-at-the-Federal-Circuit-Donna-Kline-Now-Sep-17-2012>.
- Donna Kline. “Federal Circuit Violates Leader Technologies’ Constitutional Rights.” Donna Kline Now! Sep. 1, 2012 <https://www.fbcoverup.com/docs/library/2012-09-12-Donna-Kline-Now-Cover-up-In-Process-at-the-Federal-Circuit-Donna-Kline-Now-Sep-17-2012.pdf>.
- Donna Kline. “Proof Fenwick & West LLP did not disclose Leader as prior art to Facebook.” Donna Kline Now! Mar. 29, 2012 <https://www.fbcoverup.com/docs/library/2012-03-29-Donna-Kline-Now-Proof-Fenwick-and-West-LLP-did-not-disclose-Leader-as-prior-art-to-Facebook.pdf>.
- [Duplicate citation removed, Nov. 14, 2013].
- Donna Kline. “The Leader v. Facebook Judicial Scandal Widens – Congressional briefing reveals 20-year linkages among key players in tech, finance, academia, judiciary, the Russian government and former Obama bailout director.” Donna Kline Now! Oct. 22, 2012 <https://www.fbcoverup.com/docs/donnakline/2012-10-22-Donna-Kline-Now-The-Leader-v-Facebook-Judicial-Scandal-Widens-22-Oct-2012.pdf>.
- Douglas Herbert. “IMF faces new Russia test.” CNN Money, Aug. 26, 1999 <https://www.fbcoverup.com/docs/library/1999-08-26-IMF-faces-new-Russia-test-by-Douglas-Herbert-CNNMoney-Aug-26-1999.pdf>.
- Edward F. Green. “Say-on-Pay and the Business Judgment Rule.” The Harvard Law School Forum on Corporate Governance and Financial Regulation, Nov. 26, 2011 <https://www.fbcoverup.com/docs/library/2011-11-26-Say-on-Pay-and-the-Business-Judgment-Rule-The-Harvard-Law-School-Forum-on-Corporate-Governance-and-Financial-Regulation-by-Edward-F-Green-Harvard-Law-Nov-26-2011.pdf>.
- Facebook Credits Word Mark - The new world currency?
USPTO, Ser. No. 77934145, Filed Feb. 11, 2010 <http://tess2.uspto.gov/>.
- Facebook Insider Trading, May 22, 2012, IPO Day 3. SEC Edgar, May 22, 2012 <https://www.fbcoverup.com/docs/donnakline/2012-05-18-Donna-Kline-Now-Facebook-IPO-Is-the-bubble-over-before-it-started.pdf>.
- Facebook, Inc. Form S-1 Registration Statement. SEC Edgar, Feb. 1, 2012 <http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm>.
- False statements by Facebook expert witness Dr. Saul Greenberg. Origins of Facebook’s Technology <http://facebook-technology-origins.blogspot.com/2011/08/lesson-in-expert-witness-dark-arts.html>.
- “Federal courts are coddling a proven infringer.” Briefing for Representative Jim Jordon, Critical Constitutional Matters for the House Judiciary Committee.” House Judiciary Committee, Sep. 28, 2012. Available at Americans For Innovation and Against Intellectual Property Theft <https://www.fbcoverup.com/docs/library/2012-09-28-Briefing-for-Rep-Jim-Jordan-OHIO-Federal-courts-are-coddling-a-proven-infringe-28-Sep-2012.pdf>.
- Goldman Sachs $10 billion, and Morgan Stanley $10 billion. Capital Purchase Program (TARP), Transaction Report, U.S. Treasury, Oct. 29, 2008 <https://www.fbcoverup.com/docs/library/2008-10-29-Transaction-Report-Capital-Purchase-Program-TARP-US-Treasury-Oct-29-2008.pdf>.
- James W. Breyer, Accel Partners LLP, and Mark Zuckerberg. “Entrepreneurial Thought Leaders Seminars.” Stanford Center for Professional Development, Oct. 26, 2005 @49m11s <http://youtu.be/WA_ma359Meg?t=49m11s>; See also Transcript Tr. 39:14-40:8 <https://www.fbcoverup.com/docs/cyberhijack/2005-10-26-Zuckerberg-Breyer-Interview-Transcript-Stanford-Center-for-Professional-Development-Oct-26-2005.pdf#page=39>.
- Jessi Hempel. ''Facebook's friend in Russia.'' Fortune, Oct. 4, 2010 <https://www.fbcoverup.com/docs/library/2010-10-04-Facebook-s-friend-in-Russia-by-Jessi-Hempel-Fortune-Oct-04-2010.pdf>.
- Jim Cramer. “You Need to See Thiel BUY Here.” CNBC Video, Aug. 21, 2012 (“There isn’t anything about Facebook is done in the right fashion . . . where are the brokers coming out and saying this isn’t right?”) <https://youtu.be/tGmPwzRrSlQ>.
- Judge Alan D. Lourie’s holdings in T.Rowe Price which has 158 funds invested in Facebook and owned 5.2% of Facebook at the time of the IPO. Donna Kline. “Hijinks at the High Court.” Donna Kline Now! Jul. 27, 2012 <http://donnaklinenow.com/investigation/hijinks-at-the-high-court>.
- Judge Kimberly A. Moore’s holdings in Fidelity Contrafund which has highly-publicized holdings in Facebook. Renewed Motion for Leave to file Brief of Amicus Curiae Lakshmi Arunachalam, Ph.D. in support of Leader Technologies, Jul. 10, 2012. Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.), Jul. 27, 2012 <https://www.fbcoverup.com/docs/cyberhijack/2012-07-27-Entry-No-48-Renewed-Motion-for-Leave-to-File-Amicus-Curiae-Brief.pdf#page=22>.
- Juliet Chung and S. Mitra Kalita. “Home Brings $100 Million.” The Wall Street Journal, Mar. 31, 2012 <http://online.wsj.com/article/SB10001424052748704530204576233170859101198.html>.
- Karen Mracek and Thomas Beaumont, Des Moines Register. “Goldman reveals where bailout cash went.” USA Today, Jul. 26, 2010. Accessed Oct. 15, 2012 <https://www.fbcoverup.com/docs/library/2010-07-26-Goldman-reveals-where-bailout-cash-went-by-Karen-Mracek-and-Thomas-Beaumont-Des-Moines-Register-Jul-26-2010.pdf>.
- “Lack of Expert Witness Credibility,” Brief Of Amicus Curiae Lakshmi Arunachalam, Ph.D. In Support Of Leader Technologies' Petition For Rehearing And Rehearing En Banc, p. 23. Filed Jul. 10, 2012, Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.) <https://www.fbcoverup.com/docs/cyberhijack/2012-07-10-Entry-No-43-Brief-Of-Amicus-Curiae-Lakshmi-Arunachalam-Ph-D-In-Support-Of-Leader-Technologies-Petition-For-Rehearing-And-Rehearing-En-Banc-Filed-Jul-10-2012.pdf#page=31>.
- (Note as of 10/23/2017, this video has been removed by Bloomberg) “Larry Summers Joins Andreessen Horowitz as Adviser.” Bloomberg TV, Jun. 30, 2012 <http://www.bloomberg.com/video/71689380-larry-summers-joins-andreessen-horowitz-as-adviser.html>.
- Laurie Segall, “Sorry, Americans: Goldman kicks U.S. clients out of Facebook deal.” CNN Money, Jan. 17, 2011 <https://www.fbcoverup.com/docs/library/2011-01-17-Sorry-Americans-Goldman-kicks-US-clients-out-of-Facebook-deal-by-Laurie-Segall-CNN-Money-Jan-17-2011.pdf>.
- Liz Rapapport, Aaron Lucchetti and Geoffrey A. Fowler. “Goldman Limits Facebook Offering.” The Wall Street Journal, Jan. 18, 2011 <https://www.fbcoverup.com/docs/library/2011-01-18-Goldman-Limits-Facebook-Offering-by-Liz-Rapapport-Aaron-Lucchetti-and-Geoffrey-A-Fowler-The-Wall-Street-Journal-Jan-18-2011.pdf>.
- Mark Zuckerberg Deposition, Apr. 25, 2006, ConnectU LLC v. Zuckerberg et al, 1:04-cv-11923-DPW (D.Mass. 2004) <https://www.fbcoverup.com/docs/cyberhijack/2006-04-25-Mark-Zuckerberg-Deposition-Apr-25-2006-ConnectU-LLC-v-Zuckerberg-et-al-1-04-cv-11923-DPW-D-Mass-2004.pdf>.
- Michael McKibben and Alan Stern with Forward by Hy Berman. “In Bytes We Trust, Why Digital Security and Privacy Matter.” Donna Kline Now! Aug. 7, 2012 <https://www.fbcoverup.com/docs/library/2012-08-07-In-Bytes-We-Trust-McKibben-and-Stern-Aug-07-2012.pdf>.
- Michael Wolff. “How Russian Tycoon Yuri Milner Bought His Way Into Silicon Valley.” Wired, Oct. 21, 2011 <https://www.fbcoverup.com/docs/library/2011-10-21-How-Russian-Tycoon-Yuri-Milner-Bought-His-Way-Into-Silicon-Valley-WIRED-Oct-21-2011.pdf.pdfo-Silicon-Valley-WIRED-Oct-21-2011.pdf>.
- Renewed Motion for Leave To File Amicus Curiae Lakshmi Arunachalam, Ph.D. Brief, Jul. 27, 2010 - Leader v. Facebook, Case No. 2011-1366 (Fed. Cir.) <https://www.fbcoverup.com/docs/cyberhijack/2012-07-27-Entry-No-48-Renewed-Motion-for-Leave-to-File-Amicus-Curiae-Brief.pdf>.
- Response to Request of Federal Circuit Bar Association's Request for Reissue Re. Leader v. Facebook, Case No. 2011-1366 (Fed. Cir.) by Lakshmi Arunachalam, Ph.D., Sep. 17, 2012 <https://www.fbcoverup.com/docs/cyberhijack/2012-09-17-Entry-No-53-Response-to-Request-of-Federal-Circuit-Bar-Association-s-Request-for-Reissue-Re-Leader-v-Facebook-Case-No-2011-1366-Fed-Cir-by-Lakshmi-Arunach.pdf>.
- Roland Jones. “Facebook insider sells a majority of his shares in the company.” NBC News, Aug. 21, 2012 <https://www.fbcoverup.com/docs/library/2012-08-21-Facebook-insider-sells-a-majority-of-his-shares-in-the-company-by-Roland-Jones-NBCNews-Aug-21-2012.pdf>.
- “Russian mob probe widens. Report: European banks, IMF drawn into Russian money laundering investigation.” CNN Money, Aug. 24, 1999 <https://www.fbcoverup.com/docs/library/1999-08-24-Russian-mob-probe-widens-by-Staff-Writers-CNNMoney-Aug-24-1999.pdf>.
- “Russian scandal widens.” CNN Money, Aug. 26, 1999. Accessed Oct. 16, 2012 <https://www.fbcoverup.com/docs/library/1999-08-26-Russian-scandal-widens-by-Staff-Writers-CNNMoney-Aug-26-1999.pdf>.
- Ryan Tate, “The ‘Hard’ Russian Oligarch Behind Facebook’s New Money.” Gawker, May 27, 2009 <https://www.fbcoverup.com/docs/library/2009-05-27-The-Hard-Russian-Oligarch-Behind-Facebook-s-New-Money-by-Ryan-Tate-Gawker-May-27-2017.pdf>.
- Scott Keyes. “After Taking A $10 Billion Bailout, Goldman Sachs Announces It Will Outsource 1,000 Jobs To Singapore.” Think Progress, Jun. 28, 2011 <https://www.fbcoverup.com/docs/library/2011-06-28-After-Taking-A-$10-Billion-Bailout-Goldman-Sachs-Announces-It-Will-Outsource-1000-Jobs-To-Singapore-by-Scott-Keyes-Think-Progress-Jun-28-2011.pdf>.
- Sheila Bair. “The Big Bailout.” Fortune, Oct. 8, 2012 <http://finance.fortune.cnn.com/2012/09/20/bair-bull-horns/>.
- Simon Goodley, “Facebook investor DST comes with ties to Alisher Usmanov and the Kremlin – Three Goldman Sachs bankers, Alexander Tamas, Verdi Israelian and John Lindfors joined DST over the past three years.” The Guardian, Jan. 4, 2011 <https://www.fbcoverup.com/docs/library/2011-01-04-Facebook-investor-DST-comes-with-ties-to-Alisher-Usmanov-and-the-Kremlin-Jan-04-2011.pdf>.
- “Spotlight DLD10 (Jim Breyer & Yuri Milner).” DLD 2010 Munich, Germany, Feb. 1, 2010YouTube. Accessed Oct. 15, 2012, @4m37s <http://youtu.be/Jq8t2O5M0NI?t=4m37s>.
- Steven M. Davidoff. “Facebook and the 500-Person Threshold.” The New York Times, Jan. 3, 2011 <https://www.fbcoverup.com/docs/library/2011-01-03-Facebook-and-the-500-Person-Threshold-by-Steven-M-Davidoff-The-New-York-Times-Jan-03-2011.pdf>.
- Summary of The Harvard Crimson articles about Mark Zuckerberg. Origins of Facebook’s Technology, Aug. 27, 201, fn. 7 <http://facebook-technology-origins.blogspot.com/2011/08/mark-zuckerberg-used-leader-white-paper.html>.
- Summers supported the Commodity Futures Modernization Act, “which allowed many derivatives – like the credit default swaps that have rocked markets this fall – to go unregulated.” See Jeanne Sahadi. “Obama picks Summers as top economic adviser.” CNN Money, Nov. 23, 2008 <https://www.fbcoverup.com/docs/library/2008-11-23-Obama-picks-Summers-as-top-economic-adviser-by-Jeanne-Sahadi-CNN-Money-Nov-23-2008.pdf>.
- Susanne Craig and Andrew Ross Sorkin. “Goldman Offering Clients a Chance to Invest in Facebook.” The New York Times, Jan. 2, 2011 <https://www.fbcoverup.com/docs/library/2011-01-02-Goldman-Offering-Clients-a-Chance-to-Invest-in-Facebook-by-Susanne-Craig-and-Andrew-Ross-Sorkin-The-New-York-Times-Jan-02-2011.pdf>.
- The Federal Circuit Bar Association’s Request For Reissue of Order as Precedential Pursuant to Federal Circuit Rule 32.1(e), Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.), Sep. 11, 2012 <https://www.fbcoverup.com/docs/cyberhijack/2012-09-17-Entry-No-53-Response-to-Request-of-Federal-Circuit-Bar-Association-s-Request-for-Reissue-Re-Leader-v-Facebook-Case-No-2011-1366-Fed-Cir-by-Lakshmi-Arunach.pdf#page=31>.
- Timothy L. O’Brien. “Russian Industrialist in Money Laundering Inquiry Accuses Moscow Aides.” The New York Times, Aug. 28, 1999 <https://www.fbcoverup.com/docs/library/1999-08-28-Russian-Industrialist-in-Money-Laundering-Inquiry-Accuses-Moscow-Aides-by-Timothy-L-OBrien-The-New-York-Times-Aug-28-1999.pdf>.
- 2008 Timeline of Events in the Facebook “ecosystem.” Americans for Innovation and Against Intellectual Property Theft, Oct. 24, 2012. Following page.
See also: http://www.fbcoverup.com/docs/cyberhijack/cyber-hijack-findings.html
https://www.fbcoverup.com/docs/library/deep-state.html
Footnotes
2 David Ellerman. “Lessons From East Europe’s Voucher Privatization.” World Bank, 1999, fns. 2, 11.
3 Andrei Volgin and Yuri Milner. “Voucher Investment Funds.” World Bank, 1993.
4 David Ellerman. “Can the World Bank Be Fixed?” Univ. of California, Riverside, 2005 (citing John Maynard Keynes’ observations about the Russian Revolution and the “surprisingly apt” comparisons to Russia in the 1990’s).
6 Timothy L. O’Brien. (Aug. 28, 1999). Russian Industrialist in Money Laundering Inquiry Accuses Moscow Aides. The New York Times, Aug. 28, 1999; See also “Russian mob probe widens. Report: European banks, IMF drawn into Russian money laundering investigation.” CNN Money, Aug. 24, 1999; Douglas Herbert. “IMF faces new Russia test.” CNN Money, Aug. 26, 1999.
7 After making numerous haughty statements in the press about Michael McKibben and Leader Technologies having nothing innovative and being “patent trolls” who were attempting to piggyback off of Facebook’s success, Facebook failed to present a single piece of prior art to justify their assertions. Facebook put forward numerous patents by the Xerox PARC Computer Science Laboratory friends of their expert witness, Dr. Saul Greenberg. Despite Greenberg presenting unqualified science at trial (he made false statements which Judge Leonard P. Stark did not disqualify pursuant to Daubert), Greenberg still failed to prove that any of the Xerox technology was innovative over Leader’s. Facebook also filed for and was granted two patent reexaminations at the U.S. Patent Office, but failed both times to put forward even a single item of prior art to prove their accusations. Therefore, Facebook’s “patent troll” haughtiness was simply the evident bluster of the guilty. Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 US 579 (Supreme Court 1993) at 595-597 (the trial judge must ensure the reliability of scientific testimony). See also “Lack of Expert Witness Credibility,” Brief Of Amicus Curiae Lakshmi Arunachalam, Ph.D. In Support Of Leader Technologies' Petition For Rehearing And Rehearing En Banc, p. 23. Filed Jul. 10, 2012, Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.).
10 Breyer becomes Facebook Chairman. Breyer claims he did not know Zuckerberg very long prior to investing, but that story appears doubtful. Breyer let slip in Munich, Germany in 2010 that others from Accel Partners (likely fellow Harvard alums Jim Swartz and Ping Li with the help of ex-PayPal co-founders Reid Hoffman and Peter Thiel) had been working with Zuckerberg since 2003. Jim Swartz and Ping Li were called “big winners” in the Facebook IPO by C/Net.
12Ryan Tate, “The ‘Hard’ Russian Oligarch Behind Facebook’s New Money.” Simon Goodley, “Facebook investor DST comes with ties to Alisher Usmanov and the Kremlin – Three Goldman Sachs bankers, Gawker, May 27, 2009.
13 See also Alexander Tamas, Verdi Israelian and John Lindfors joined DST over the past three years.” The Guardian, Jan. 4, 2011.
15 Judge Kimberly A. Moore and Judge Alan D. Lourie. Microsoft is a director of The Federal Circuit Bar Association where the Federal Circuit Clerk of Court Jan Horbaly is an Ex Officio officer, and the Bar Association filed an unusual request on Jul. 11, 2012 to have the Federal Circuit judge’s conflicts of interest in Leader v. Facebook, including undisclosed investments in Facebook, excused and absolved. The Clerk refuses to docket the opposition to this request by Dr. Lakshmi Arunachalam. Response to Request of Federal Circuit Bar Association's Request for Reissue Re. Leader v. Facebook, Case No. 2011-1366 (Fed. Cir.) by Lakshmi Arunachalam, Ph.D., Sep. 17, 2012.
16 Anne Krauskopf, Senior Special Counsel, Response of the Office of Chief Counsel, Division of Corporation Finance, SEC Edgar, Oct. 22, 2008. (“Will not object if Facebook, Inc. does not comply with the registration requirements of Section 12(g) of the Securities Exchange Act of 1934 (the “Exchange Act”) with respect to restricted stock units . . . “).
17Goldman Sachs $10 billion, and Morgan Stanley $10 billion. Capital Purchase Program (TARP), Transaction Report, U.S. Treasury, Oct. 29, 2008.
18Sheila Bair. Sheila Bair and the bailout bank titans.” Fortune, Sep. 20, 2012.
19 Complaint. Leader Technologies, Inc. v. Facebook, Inc., 08-cv-862-JJF-LPS (D.Del. 2008); Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.).
20 Summers supported the Commodity Futures Modernization Act, “which allowed many derivatives – like the credit default swaps that have rocked markets this fall – to go unregulated.” See Jeanne Sahadi. “Obama picks Summers as top economic adviser.” CNN Money, Nov. 23, 2008.
21 Facebook COO Sheryl Sandberg had known Yuri Milner from 20-years ago having worked with him and Larry Summers at the World Bank on the failed Russian voucher system. Fortune states “Since Milner made his investment, his insights have had a significant influence on the company. Zuckerberg meets with Milner whenever he passes through town—once a month, on average—and he turned to the Russian for much of his thinking on Facebook's newly launched Facebook Credits, a virtual currency system that could in time account for 20% to 30% of the company's revenues.” See Jessi Hempel. ''Facebook's friend in Russia.'' Fortune, Oct. 4, 2010.
22 Such misconduct could invalidate many if not all of Facebook’s patent filings. Evidence of Fenwick’s sensitivity to this issue can be seen at the U.S. Patent Office where their attorney on the Andreessen patents, Christopher P. King, later changed his name to “Christopher-Charles King” on Facebook disclosures—and only for Facebook. Reasonable speculation is that this helps avoid his name popping up in search results. See Donna Kline. “Proof Fenwick & West LLP did not disclose Leader as prior art to Facebook.” Donna Kline Now! Mar. 29, 2012.
24 This disclosure occurred only after the threat of a subpoena from Sen. Chuck Grassley and the Senate Finance Committee. SeeKaren Mracek and Thomas Beaumont, Des Moines Register. “Goldman reveals where bailout cash went.” USA Today, Jul. 26, 2010.
26 Forbes says Alisher Usmanov “is tight with the Kremlin” and “is an oligarch straight out of central casting.” Parmy Olson. “The Billionaire Who Friended the Web.” Forbes, Mar. 28, 2011.
27 The jury admitted to the judge and attorneys after the trial on Jul. 27, 2010 that they had no evidence of on-sale bar and instead based their decision on speculation. (Speculation is not evidence.) Attendees at this polling of the jury report that Juror #6 was noticeably vociferous in his anti-inventor statements. This man is a Delaware prison guard who had pressed himself forward to become foreman. This same man is believed to have been sued for child support and had his prison paycheck garnished several years earlier. After the Leader v. Facebook trial his Facebook page boasted a red sports kit car; now removed from public view. The Leader v. Facebook trial appears to have turned on the integrity of Juror #6. Judge Leonard P. Stark appears to have relied on Juror #6’s unsupported vociferousness. Indeed, Judge Stark’s opinion bent over backwards by citing an obscure 1800’s criminal case—never before used in a patent case—to support Juror #6’s opinion. Was this simply the mistake of a novice federal judge? If so, why didn’t the Federal Circuit panel correct this mistake as is their solemn duty?
28 Susanne Craig and Andrew Ross Sorkin. “Goldman Offering Clients a Chance to Invest in Facebook.” The New York Times, Jan. 2, 2011.
29 See Jessi Hempel. ''Facebook's friend in Russia.'' Fortune, Oct. 4, 2010; See also Barbara Ortutay. (Jan. 03, 2011). Goldman Invests In Facebook At $50 Billion Valuation. The San Diego Union-Tribune; Steven M. Davidoff. “Facebook and the 500-Person Threshold.” The New York Times, Jan. 3, 2011.
30 Liz Rapapport, Aaron Lucchetti and Geoffrey A. Fowler. “Goldman Limits Facebook Offering.” The Wall Street Journal, Jan. 18, 2011; See also Laurie Segall, “Sorry, Americans: Goldman kicks U.S. clients out of Facebook deal.” CNN Money, Jan. 17, 2011.
31 See Juliet Chung and S. Mitra Kalita. “Home Brings $100 Million.” The Wall Street Journal, Mar. 31, 2012; See also Clare O’Connor. “Inside Yuri Milner’s $100 Million Silicon Valley Mansion.” Forbes, Mar. 31, 2011; Michael Wolf. “How Russian Tycoon Yuri Milner Bought His Way Into Silicon Valley.” Wired, Oct. 21, 2011.
32 Scott Keyes. “After Taking A $10 Billion Bailout, Goldman Sachs Announces It Will Outsource 1,000 Jobs To Singapore.” Think Progress, Jun. 28, 2011.
33 Complaint. Leader Technologies, Inc. v. Facebook, Inc..
34 Facebook, Inc. Form S-1 Registration Statement. SEC Edgar, Feb. 1, 2012.
36 Facebook Insider Trading, May 22, 2012, IPO Day 3. SEC Edgar, May 22, 2012.
37 Judge Alan D. Lourie’s holdings in T.Rowe Price which has 158 funds invested in Facebook and owned 5.2% of Facebook at the time of the IPO. Donna Kline. “Hijinks at the High Court.” Donna Kline Now! Jul. 27, 2012.
38 Judge Kimberly A. Moore’s holdings in Fidelity Contrafund which has highly-publicized holdings in Facebook. Renewed Motion for Leave to file Brief of Amicus Curiae Lakshmi Arunachalam, Ph.D. in support of Leader Technologies, Jul. 10, 2012. Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.), Jul. 27, 2012.
39 These same judges, both patent attorneys, failed to follow the law on testing evidence of on-sale bar—some of which they helped write, e.g., Group One v. Hallmark Cards, etc. This law soundly debunks Facebook’s attorney-fabricated evidence and affirms Leader Technologies’ outright victory. See Brief Of Amicus Curiae Lakshmi Arunachalam, Ph.D. In Support Of Leader Technologies' Petition For Rehearing And Rehearing En Banc, Filed Jul. 10, 2012, Leader Tech v. Facebook, Case No. 2011-1366 (Fed. Cir.).
40 Andreessen dealt on both sides of the Instagram purchase. He is a director in both Instagram (sell-side) and Facebook (buy-side). After this transaction, Summers faded back to Boston and teaching at Harvard. His receipts from the Instagram deal are unknown. His support of Andreessen’s conflicts of interest is remarkable given the amount of work and writing on this subject at the Harvard Business and Law Schools. See “Larry Summers Joins Andreessen Horowitz as Adviser.” Bloomberg TV, Jun. 30, 2012 (Note as of 10/23/2017, this video has been removed by Bloomberg); See also Edward F. Green. “Say-on-Pay and the Business Judgment Rule.” The Harvard Law School Forum on Corporate Governance and Financial Regulation, Nov. 26, 2011.
43 Deposition of Michael F McGowan, Facebook forensic expert witness, Paul D. Ceglia v. Mark Elliot Zuckerberg, 1:10-cv-00569-RJA (W.D.N.Y. 2010), July 18, 2012; See also Donna Kline. “Federal Circuit Violates Leader Technologies’ Constitutional Rights.” Donna Kline Now! Sep. 1, 2012.
45 Jim Cramer. “You Need to See Thiel BUY Here.” CNBC Video, Aug. 21, 2012 (“There isn’t anything about Facebook is done in the right fashion . . . where are the brokers coming out and saying this isn’t right?”); See also Roland Jones. “Facebook insider sells a majority of his shares in the company.” NBC News, Aug. 21, 2012.
47 Donna Kline. “Cover-up in Process at the Federal Circuit? Internet pioneer says the judges and clerk failed their ethical duties in Leader v. Facebook; Four Facebook law firms plus Microsoft are “leaders” in the Federal Circuit Bar Association who filed a request that would absolve the judges of conflicts; international and post-Soviet ties.” Donna Kline Now! Sep. 17, 2012.
48 Patentees must disclose to the patent Examiner any prior art reference that the Examiner should consider as possible prior art. Not knowing about an item of prior art is permissible. Knowing about a piece of prior art and not telling the Examiner is fraud, or “inequitable conduct” in patent-speak. The US Patent Office record shows unequivocally that Fenwick & West LLP knew about the Leader patent because they disclosed it in earlier prior art for two Marc Andreessen patents. In addition, Fenwick was Leader’s attorney in 2001-2003 and clearly knew about Leader’s claims. See Donna Kline. “Proof Fenwick & West LLP did not disclose Leader as prior art to Facebook.” Donna Kline Now! Mar. 29, 2003.
49 The Federal Circuit Bar Association’s Request cited case law implying that everything the judges did in Leader v. Facebook regarding appearances of impropriety was innocent.
50 Michael McKibben and Alan Stern with Forward by Hy Berman. “In Bytes We Trust, Why Digital Security and Privacy Matter.” Donna Kline Now! Aug. 7, 2012.
51 James W. Breyer, Managing Partner, Accel Partners LLP; Facebook Director; Wal-Mart Director; Former Chairman of the National Venture Capital Association; beneficiary of $6.5 billion in public funds from the Facebook IPO at the beginning of Day 3 with the blessings of the SEC and Fenwick & West LLP. See Feb. 1, 2010.
Available from Americans For Innovation and Against Intellectual Property Theft
https://www.fbcoverup.com/docs/library/2012-10-19-Briefing-for-Representative-Jim-Jordan-OH-HOUSE-OVERSIGHT-COMMITTEE-American-and-Russian-Opportunists-Undermining-U-S-Sovereignty-and-Corruption.pdf
http://americans4innovation.blogspot.com
Published, October 19, 2012
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