That seems pretty basic.
The documentation, graphics, and some css were copyright FA. Opensource products (of which I still contend, the Apache license only applies to people running it, and the only people running it were internal FA devs and IMVU, therefore the only people allowed the source would be IMVU) often do not include the graphical assets and text documentation. That's why there are separate documentation based licenses that are used.
He took something that didn't belong to him and distributed it to the world, as well as used it as a basis for his own business. That gets you banned, sued, and rejected no matter who you are.