One of Denmarks 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.