For the price it went for, I'd guess it's a fake, stolen or a replica perhaps. A truely genuine prototype should go for a huge chunk of change to me anyway, even if it didn't work. Maybe it's an abused display model that is non-working, who knows.
It looks gawdawful, the leatherette and gaps in the edges look suspect by themselves. Almost like someone wanted to make a fake yet real looking camera.
I don't know the M240 or the M8/M9's well enough to know whats what. My first thought was that someone took a M8 and made it look like an M240 and then played with the look enough to make it feel like it was a prototype and thus "incomplete" to add to the believability.
lol. Funny the stuff people will sell on eBay.