Sorry about this. It looks like I can't edit it anymore. Mahmud helped me in the early stages, but was not the person I partnered with and has nothing to do with the issues. At this time I don't know how much information my alleged partner has about me so I am going to refrain from outing any information on him. It looks like my best bet is to just walk away at this point.
jiganti, as I mentioned it is your perogative to not out this user. However, I have done some poking around and posted my findings here: http://news.ycombinator.com/item?id=2158590
If I were you, I'd delete the post ASAP, before google bots reach, I edit were not possible anymore, and start a new thread. (Copy all the important/helpful suggestions).
A person's reputation can be destroyed very easily on the internet. (I, for one, even after reading pretty slowing, thought 'mahmud' was the scammer).
Edit - If you, for some reason, decide not to delete the post, atleast reply directly to mahmud's comment, so when it reaches top, people would see clarification, just underneath it.