Stein Bagger
Encyclopedia
Stein Bagger is a Danish businessman, entrepreneur and former CEO of the now-bankrupt company IT Factory. Before bankruptcy and subsequent fraud-scandal, he was named "Danish Entrepreneur of the Year" by Ernst & Young
, and his company was named "Denmark's best IT-company" two years in a row by the magazine Computerworld. On the 11 June, 2009, Stein Bagger was sentenced 7 years prison.
r (250 million US dollars), making this the biggest financial fraud case in Denmark
in recent decades. As a result, Bagger was charged with fraud and forgery, and a warrant for his arrest was put out by Interpol
.
in International Business
from "San Francisco Technical University". No such university exists. After reporters inquired about the alleged degrees, Bagger hired an American actress to impersonate an official of the fake university, to "verify" his degrees.
at approximately 21:00 GMT on 6 December 2008. Bagger had reportedly left Dubai on a plane destined for New York where he borrowed a car from a Swedish friend, Mikael Ljungman
, before making a cross-country trip to Los Angeles. According to statements posted by him on his family's blog
(and later repeated in an interview and apparently in court), he had allegedly been a victim of systematic extortion
and threats towards his family, forcing him to take fraudulent steps in order to raise revenue to secure his family. However, many critics doubt the authenticity of those statements. Bagger was held in US custody until his extradition to Danish legal authorities. On December 16, he was extradited to Denmark and jailed in isolation pending further investigations.
Ernst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
, and his company was named "Denmark's best IT-company" two years in a row by the magazine Computerworld. On the 11 June, 2009, Stein Bagger was sentenced 7 years prison.
Disappearance and charges
Bagger disappeared on 27 November, 2008, while on a trip to Dubai with his wife and some business colleagues. On 1 December, information emerged indicating that IT Factory's revenue had been artificially inflated and a leasing scam had been instigated, effectively defrauding banks and private investors for over 1.2 billion Danish kroneDanish krone
The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
r (250 million US dollars), making this the biggest financial fraud case in Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
in recent decades. As a result, Bagger was charged with fraud and forgery, and a warrant for his arrest was put out by Interpol
Interpol
Interpol, whose full name is the International Criminal Police Organization – INTERPOL, is an organization facilitating international police cooperation...
.
Fake degrees
Stein Bagger claimed that he had several academic degrees, including an MBA and a PhDPHD
PHD may refer to:*Ph.D., a doctorate of philosophy*Ph.D. , a 1980s British group*PHD finger, a protein sequence*PHD Mountain Software, an outdoor clothing and equipment company*PhD Docbook renderer, an XML renderer...
in International Business
International Business
International business is a term used to collectively describe all commercial transactions that take place between two or more regions, countries and nations beyond their political boundary...
from "San Francisco Technical University". No such university exists. After reporters inquired about the alleged degrees, Bagger hired an American actress to impersonate an official of the fake university, to "verify" his degrees.
Re-emergence and incarceration
Stein Bagger turned himself in to US police in downtown Los AngelesLos Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
at approximately 21:00 GMT on 6 December 2008. Bagger had reportedly left Dubai on a plane destined for New York where he borrowed a car from a Swedish friend, Mikael Ljungman
Mikael Ljungman
Mikael Ljungman is a businessman and inventor working with mobile communications. Mikael Ljungman is a partner of Carl Freer, working on the relaunch of Gizmondo, the gaming and Augmented Reality console, Blowfishworks and The Media Power Group, GetFugu. Following the IT Factory scam, Danish...
, before making a cross-country trip to Los Angeles. According to statements posted by him on his family's blog
Blog
A blog is a type of website or part of a website supposed to be updated with new content from time to time. Blogs are usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in...
(and later repeated in an interview and apparently in court), he had allegedly been a victim of systematic extortion
Extortion
Extortion is a criminal offence which occurs when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion. Refraining from doing harm is sometimes euphemistically called protection. Extortion is commonly practiced by organized crime...
and threats towards his family, forcing him to take fraudulent steps in order to raise revenue to secure his family. However, many critics doubt the authenticity of those statements. Bagger was held in US custody until his extradition to Danish legal authorities. On December 16, he was extradited to Denmark and jailed in isolation pending further investigations.