U.S. vs. Facebook: A Playbook for SEC, DOJ and EDNY

Six4Three
Six4Three
Mar 20, 2019 · 27 min read
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All that follows is based on publicly available information. Most of the information in this article can be obtained or readily inferred from filings that have been available on a California court website for at least a year and in some cases more than two years. The rest can be found elsewhere on the Internet. Clear corroboration could be obtained from at least a half-dozen former Facebook employees who presumably would rather have immunity than face criminal charges and associated jail sentences upon plea or conviction. Six4Three publishes this article in exercise of its First Amendment rights to inform the public and the United States Government regarding a matter of great public interest and consequence.

Six4Three recently published a playbook for the FTC to get to the bottom of Facebook’s secretive deals selling user data without privacy controls. In light of The New York Times article reporting multiple criminal investigations into Facebook surrounding these secretive deals, we’re publishing the playbook for criminal investigators.

Facebook’s Pattern of Racketeering Activity: A Play In Three Acts

Act I

Securities violations to mask collapse of desktop advertising revenues

Act II

Extortion and wire fraud scheme selling user data without privacy controls in exchange for mobile ad purchases in order to mask securities violations

Act III

Repeated lying to government investigators to mask extortion and wire fraud scheme while continuing to extend the scheme

Act I: Covering Up the Collapse of the Business — Securities Violations

We start at the beginning: Facebook’s nightmare IPO on May 18, 2012. Few recall that the world’s fifth largest company had the single worst performing IPO of the 2000s and was considered by Bloomberg to be the “flop of the decade.” A lawsuit filed by a number of state pension funds in 2012 and 2013 covers what is publicly known about Facebook’s securities violations during and after its IPO. Facebook conveniently settled this lawsuit right before the Cambridge Analytica scandal broke in early 2018. This may seem like a coincidence, but it’s not. Zuckerberg knew the Cambridge Analytica scandal was coming. He knew exactly how it was facilitated by actions he took to address his failed IPO; and he has poured all the resources of his vast empire into preventing investigators from making that connection.

Act II: Saving the Business — Extortion and Wire Fraud

This brings us to the heart of the Six4Three and Styleform cases: how Facebook built its mobile business model and covered up its more nefarious securities violations from 2012. Six4Three and Styleform allege in their cases that the same Board of Directors and executives who got rich in the IPO by lying to everyone in May 2012 soon after approved a plan at the August 2012 Board of Directors meeting that, although involving lots of cryptic doublespeak, would ultimately weaponize the reliance of 2 billion people and tens of thousands of businesses in an extortion and wire fraud scheme that, frankly, has been the root cause of Facebook’s destabilization of the global political order and most of the ongoing investigations into its business. Yeah, that’s a lot to take in.

Act III: The Most Massive Privacy-Violating Scheme in History Concealed Under a Privacy Banner — Ongoing Wire Fraud, Lying to Government Investigators, and the RICO Pattern

The New York Times investigation published on December 18, 2018 demonstrates the ongoing nature of the pay-to-play scheme Zuckerberg first concocted in 2012. The investigation reveals that the actions Facebook took to cover up the scheme in 2014 and 2015, the announcement of Graph API 2.0 and the New Facebook Login, were never about privacy. The more than 50 APIs Facebook “shut down” in this announcement were the same ones Zuckerberg used in his extortion scheme starting in 2012. And the investigation shows clearly that the APIs were not in fact shut down; they were privatized. We have been alleging this in our case for three years now! Oddly enough, the true status of these APIs hasn’t actually changed at any point in time. From 2012 to present the status of these APIs has been what one might call: ‘secretly privatized’. It’s just that, from 2012 to 2015, they were secretly privatized while being publicly available; and, since 2015, they have been secretly privatized while being publicly unavailable.

Postscript: Anticipating Facebook’s Further Retaliation Against Us for Laying Out the RICO Case

Facebook recently got the San Mateo Superior Court to rule that Six4Three has engaged in a criminal conspiracy with its attorneys and has been leaking Facebook’s confidential files to the media and government entities for more than a year now.

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