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.
I know, they must have been pretty good to be able to fool their accountants like that.
http://www.itfactory.com/about_history.html
SOurce: http://www.siia.net/ondemandeurope/2007/speakers_call.asp
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)!
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...
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