David Nicholson put the flag on Ebay hoping to pay medical bills for his kidney cancer. But since the story gained national media attention, the bids suddenly stopped.
"That amount's been on there for several days and that's not the amount we were looking for because we were going to donate a big portion to Duke Cancer Center," said Nicholson.
Nicholson thought he could raise $1 million, but bidding froze at just over $370,000.
"Other events have happened since these bids," said Nichols. "Now that's kind of sabotaged our auction."
Nicholson advertised that the flag hung from a Facchina Construction Company crane outside of the Pentagon on 9-11. And he says he has the certificate of authenticity to prove it.
Facchina, however, denies the flags was onsite after the attacks and discredits the certificate, writing in an online press release:
"The item description is erroneous. Facchina has advised us that it did not have a crane on site at the Pentagon on Sept. 11, 2001, to the extent that such a certificate exists, issuance of the certificate was not authorized by Facchina."
"Someone e-mailed my bidders and told them that my flag was not there," Nicholson said.
Golden Palace Casino was one of the potential bidders, but since Facchina posted the news release on their Web site, Nicholson hasn't heard a word since. In fact the winning bidder has decided to retract his bid.
"I'll respect his decision. It's not my fault nor his fault that this has happened," said Nicholson.
He has not given up yet and plans to re-list the flag on Ebay for a three-day auction.
Despite the setback with the auction, the family is still looking for donations to help pay for his treatment.