Danish software firm goes bankrupt, CEO wanted by Interpol

One of Denmark's largest software firms, IT Factory, has declared bankruptcy after papers were discovered that indicated its CEO, Stein Bagger, had secretly defrauded the company and embezzled an amount equal to nearly $85 million USD. Bagger is now wanted by Interpol after he has disappeared while on a trip to Dubai.

The now defunct company website has been replaced with a few lines of text and contact information for their representation. Previously the company, based in Copenhagen, provided customer relationship management (CRM), human resources management (HRM), and Lotus Notes business intelligence add-on solutions. They were also large IBM based technology solutions provider.

Bagger had defrauded the company by creating false sales orders to fictitious companies. Authorities estimate that over 90% of company revenue, approximately $143.3 million USD in 2007, is based on these forgeries. The false contracts have apparently been diverted through about 10 different companies.

The company was able to fool their accounting firm, Ernst & Young, and was selected by them to be one of the "Best Creators of Growth in Denmark," however, for the moment it seems that the only thing the company has created is a whole lot of nothing.

Report a problem with article
Previous Story

Xbox 360 claims historic Black Friday sales

Next Story

Uncharted 2 revealed in latest GameInformer issue

8 Comments

Stein Bagger joined IT FACTORY in December 2001. His main purpose was to devise and implement new strategies to cope with changes in global IT market after the .com burst. Another asset for IT FACTORY is benefiting from Stein's in long time experience in a firm and focused execution and how to grow profitable businesses. Prior to Stein's engagement with IT FACTORY, Stein has been President and CEO in other international software companies with a primary focus on business development, strategic alliances and financing. Stein Bagger holds two bachelor degrees; one in accounting and one in economics. Stein also holds an MBA and a PhD in International Business.

SOurce: http://www.siia.net/ondemandeurope/2007/speakers_call.asp

Get used to this folks! With the world economy in meltdown, and governments printing money like it was toilet paper, there'll be more of this sort of thing coming.

This guy is seen as a criminal, if you are a Bank(st)er and do the same think, you are rescued by government. He along with many other people (banksters and politicians) need to be found, stripped of their wealth, and locked up (because they will have also hidden money away).

Why haven't governments just printed money like they are now, if it is the way of keeping everyone solvent. "When in a hole - stop digging !" 50 more days, and we can start breathing again ;-) - Jan 21st., just watch the suckers cheering (before the grim reaper strikes)!

"The company was able to fool their accounting firm, Ernst & Young"? Oh, don't be stupid. They, guys from EnY, know everything. They're in deal.

Where's the source article link for this blog?

I'm wondering how he left with $85 million in cash when they say 90% of $143 million was based on fictitious companies placing fraudulent orders. I assume the fraudulent orders never paid any money, of course, so where did he get money out of fictitious orders? Commissions on sales paid in advance, but again, on how much money, etc?

Details are sketchy...

Commenting is disabled on this article.