I used to work for Mark Pincus at his "failed" social networking site, Tribe.net. It didn't fail, he ran it into the ground because it wasn't making the money he wanted - meaning it wasn't providing him with three mansions and two private aircraft the way Zynga has. It's kind of interesting though, Mark was starting Zynga exactly when Tribe.net users asked us to start a subscription program to raise money to buy needed hardware for the site. Surprise - we made $30,000 the first month, and any time I asked for money for new database servers or to pay contractors, they claimed there was no money. It's pretty obvious to me where the money went.
This is NOTHING. This story has been picked up by large media and is only going to get bigger - I was interviewed last week by Details Magazine about what a scumbag Mark is. Sadly you can't read that until March - but that's justr a measure of how fucked this company is. Up until this scandal, they were claiming Zynga would IPO in a month or two. That talk has all vanished.
THESE are the types of scumbags that need to be ridden out of Silicon Valley on a rail.