Stein Bagger arrested in LA

The Danish CEO of IT Factory, who committed fraud for so far US$170 ml. has been arrested in Los Angeles, USA early Saturday.

According to the Danish Police, Stein Bagger turned himself in to the LA Police.

Stein Bagger was threatened to commit crime

Stein Bagger sent information to his family claiming he had been forced to commit the crimes over the past four years, since someone was threatening his family.

"We not convinced about Stein Bagger should have been threatened to commit the crimes” says Gert Have from Danish Police to newspaper Politikken.

So who threatened Stein Bagger? Is it true? Still material for a book, TV series, Computer Game and much more. Who will buy the rights?

Stein Bagger update 3

 

Stain Bagger fraud US$205 million
Stein Baggers fraud in IT Factory increases to an estimated US$205 million. And more might pop up say the Lawyer who is handling the assets after IT Factory.

Stein Baggers home searched by police
The home of Stein Bagger and his wife was searched by police yesterday says Danish Newspaper Ekstra Bladet. Stein Baggers “friend” Allan Vestergaards home was searched as well. We will post a follow-up on the relationship between Allan Vestergaard and Stein Bagger later on. Allan seems to be the reason the scam fell through and is a central piece to the whole story.

Stein Bagger – call your lawyer
Per Justesen, the appointed defence lawyer asks Stein Bagger to call him. Since charges have been brought towards Stein Bagger, the defence lawyer would like Stein Bagger to contact him. But dear Stein Bagger – we know you are reading this – so why don’t you send your account of the details to us, and we will post your side of the story. (email address is listed on top of the page)

Stein Bagger in Panama?
According to Danish Newspapers Stein Bagger might be in Panama. Travel records suggest it. But now the arrest warrant is out, travel will be a lot harder. We guess Stein Bagger has backup travel papers, but maybe they are with a little different looking Stein Bagger. So maybe Stein Bagger is staying below the radar until he has grown some facial hair and if he can – some more “top” hair. J

Stein Bagger accused of $170 ml fraud

 

Danish Police have officially indicted Stein Bagger for fraud for about US$170 million. The US$170 million is based on advanced leasing scam, apparently run by Mr. Bagger and multiple international companies. Mr. Stein Bagger was CEO of Danish IT Cometh IT Factory.

This now means the Police can put out an International arrest warrant. To top the charges the Danish Tax department was investigating a sales tax fraud case him for about US$3.4 million. The tax fraud alone can get Mr. Bagger a jail sentence of about 8 years alone.

IBM is among the latest to disclose they have been swindled for US$25 million by IT Factory. IT Factory owes IBM for about US$9 million in software licenses and US$16 million in “Other products”

Hewlett Packard has disclosed outstanding dept from IT Factory to the region of US$5.4 million.

The future does not look so bright for Mr. Bagger.

The other Investors behind IT Factory are in a state of disbelief, since their holding company (JMI Invest) and other companies JMI have invested in, are now hit by the banks closing outstanding dept for every associated company.

JMI Invest have borrowed money against the apparently valuable shares of IT Factory. Now that the shares of IT Factory does not have any value, the banks are looking to get coverage for as much as possible, as quickly as possible to minimize the total loss in IT Factory.

It is a shame that hits some of the other investments JMI Invest have.

Stein Bagger updates

 

The mystery about Stein Bagger is still unfolding.

Here is a list of recent updates

• The defrauded amount can be up to US$170 million and not US$100 million as reported earlier.
  
• Danske Bank (Big Danish Bank) admits to having leasing agreements with “IT Factory” for US$60ml, most of which are made in 2008. The underlying assets seem not to exist.
  
• Nordea Bank has leasing agreements worth US$3.5 ml.
  
• Danish Hells Angels member Brian Sandberg has been employed by IT Factory and Stein Bagger for the last 12 months as “Security Consultant” guarding Stein Bagger and IT Factory. Brian Sandberg spoke to Stein Bagger just before he left to Dubai on Nov. 26^th.
  
• Stein Bagger owned 50% of IT Factory through an offshore holding company called Agios United. Everyone thought Aigos United was a 100% Stein Bagger Company, until this week where shareholders in IT Factory learned that Allan Vestergaard was a partner in the Agios United holding company
  
• Allan Vestergaard was attacked last week by unknown persons. It seems to have some relation to the case. Allan Vestergaard then called the Chairman of the board of IT Factory and that started the ball rolling. The Chairman did not know Allan Vestergaard was a partner, and hurried to Denmark and hired a bodyguard.
  
• The leasing fraud was based on Company X sending IT Factory an invoice for computer products for fx. US$10 ml. Then IT Factory went to a bank and got it financed. Then the bank paid company X. Thereafter IT Factory invoiced Company X for US$3 ml for “Software Licenses”, which company X then paid. That left enough cash in IT Factory to pay the outstanding leasing obligations and showed “software revenue”
  
• Stein Bagger claimed that he had a Phd and an MBA. The MBA was according to Edinburgh Business School never completed. The Phd seems to be fake as well. It was “issued” from “SFTU” which according to Stein Bagger was “San Francisco Technical University” a University no one can find...

Scandinavian CEO elopes after US$100 million fraud in IT company

Case ties in with former Gizmondo CEO and convicted criminal Carl Freer & Mikael P. Ljungman and creates a big black eye to Ernst & Young who 1 week before applauded the CEOs company as best of the best..

Danish IT Company “IT Factory” has been hailed as the “Success of Successes” companies in the Danish IT sector. Lead by charismatic CEO of Norwegian descent, Stein Bagger, the company had an estimated net worth of US$ 1.5 billion – until this Friday. Now it is bankrupt.

IT Factory CEO elopes from Dubai
On a pleasure trip to Dubai in the United Arab Emirates with his wife, IT Factory CEO Stein Bagger suddenly disappeared this Thursday and became impossible to reach. His wife since 2003 started a search together with the Danish Consulate in the UAE, only to discover that the husband left from Abu Dhabi airport at 03.00 am the night to Friday.

Then things started to unfold very quickly. First it turns out that the missing CEO Stein Bagger rented a little office, close to the main office of IT Factory. From there it seems he had been running his “fraudulent” part of the business, issuing purchase orders with forged signatures to IT Factory, managed an advanced leasing scam, forging the Chairman of the Boards signatures and much more.

In a statement to the Danish Press, the Chairman of IT Factory claims the total embezzlement is in the region of US$ 100 million, and had taken place over several years.

The link to criminal Carl Freer
The Danish version of IDG Computerworld had 3 weeks before started to dig into the true story behind the apparent success of IT Factory. They dug out that some of the clients and resellers listed on IT Factory’s homepage was not all what they seemed to be.

Some clients denied ever buying software from IT Factory. Other dealers said they did not know why they was listed as dealers on the website. Others had asked to be removed a long time ago as references.

And suddenly – two of the very big reference names strike the Computerworld Denmark guys as strange. Media Power Inc and eCommerce LLC. Both companies controlled by Mikael P. Ljungman and founded by Carl Freer. (website www.themediapowergroup.com)

Confronted with the dud references, CEO Stein Bagger said “We do not check the background of the people behind eCommerce LLC and Media Power Inc. As long as the behave nice we will keep them on as dealers”

And they Black Eye go to... (drum roll) Ernst and Young
Ernst & Young evaluated IT Factory and did not find anything but “greatness” – they looked through the 2007 accounts and could not find any cause to doubt the figures. They had hour long interviews with the now missing CEO without spotting any wrong doing. And even after IT Blogger Dorthe Toft had pointed out some suspect issues in the Danish press about IT Factory, Ernst and Young “double checked” again 2 weeks ago – and that did not lead to any changes of heart about giving IT Factory the Danish version of the price: “Ernst & Young Entrepreneur Of The Year®”

Black Eye runners up are Danish Computerworld who gave IT Factory 2 consecutive prices as “Best of IT” – before they started digging up the nasty stuff. But Computerworld was also part of showing the real "IT Factory" so they should be excused a bit for their part of scam boosting.

3rd Black Eye runner up is the IT Factory audit company … “KPMG Denmark” who have not been able to find anything wrong with companies accounts the last few years.

The recap
So the CEO is missing. IT Factory is missing US$100 million and is bankrupt, with 115 jobs lost. Newspapers in Denmark are full of stories about the missing guy and the fraud. Now the “former” CEO, who is a former body builder, is tied to Carl Freer and whispers from Danish police even mention Hells Angels relations. So was this planned? Was it all just a gigantic fraud from the beginning or was it a CEO trying to boost his ego by committing fraud. Only the future will tell – if he ever gets found.

In any case – this is material for a book and a Hollywood movie deal. Real life often surpasses what fiction writers can dream up. Maybe this will become a feature on CSI Miami – all we need now is a murder and the story is worth a lot of dollars. May I suggest that the remains after IT Factory gets a revenue share deal?

Links

about the bankruptcy and CEO (in Danish)

IT Factory bankrupt and CEO is on the run
Danish Computerworld articles about IT Factory’s collapse

About Carl Freer

2nd Arrest Made in Ferrari Case
Gizmondo's Spectacular Crack-up

Vista SP2 on the way

no need to go into to many details – but this is the main new features.

 

• Windows Vista SP2 adds Windows Search 4.0 for faster and improved relevancy in searches.
• Windows Vista SP2 contains the Bluetooth 2.1 Feature Pack supporting the most recent specification for Bluetooth Technology.
• Ability to record data on to Blu-Ray media natively in Windows Vista.
• Adds Windows Connect Now (WCN) to simplify Wi-Fi Configuration.
• Windows Vista SP2 enables the exFAT file system to support UTC timestamps, which allows correct file synchronization across time zones. 

and a quote from Mike Nash:

As a part of the development and testing process, we're going to start by providing a small group of Technology Adoption Program customers with Windows Vista SP2 Beta for evaluation next Wednesday, October 29. The final release date for Windows Vista SP2 will be based on quality.

So release date is not set yet.

A travellers dream

I went to Gitex in Dubai again this year, and failed to spot anything interesting. Not even the SonyEricsson X1 could get my heart to beat any faster. Keyboard is not very good so not for me, and it was SOOO sluggish.

But I spotted a small Taiwan made device from CNet Technologies (no not that Cnet) and got one from them. That is the CWR-635M – and it was a rare gem to find.

It is a micro sized router – with WAN in, 1 Ethernet out, Wireless B/G router and 2 x USB for 3.5G modem and other USB devices. The power supply is built in and weight totally is 185 grams.

So with WAN in you can connect it at the hotel and have your own wireless AP in the room.

With 3.5G USB modem plugged in – you got Wireless wherever you got a power plug and 3.5g coverage.

Configuration took 2 minutes and then I was connected to my 3.5G network.

The USB connectors can be used for WebCam, printer sharing, or as USB storage sharing via built in Samba or FTP plus of course the 3.5G USB modem.

So you can just plug in your USB key and give people file access on the go.

It even got external switch – so you can switch between Access Point, Client or Router mode – simply by a switch.

This devices is now embedded into my backpack ;-)

Don’t expect long B/G coverage distance since it has no external antennas. But for most “one the move” needs the signal is more than adequate.

I just wish they made a version that could run on my Voltaic Solar Cell backpack 5v battery for 100% “no wires needed” travel – and one that could auto switch between 3.5G USB interface and WAN via Ethernet. Then it would be perfect.

Archos 5 – Archos 7 – Archos 5g

Archos have updated their website with the new models! Archos now calls the players for Internet Media Tablets :-)

But a bit more below. More to come

Archos 5

60 GB to 250GB hard drive with 5” screen (800 x480), for Internet, Media and TV and of course WiFi with Opera Browser with Flash Video 9. And YES – it can charge via USB port! Finally!

More specs here

Archos 7

160 or 320 GB hard drive with 7” screen (800x480), for Internet, Media and TV. Wifi and free Opera browser with Flash Video 9. Does not seem to charge via USB :-(

More specs here

Archos 5g

30GB hard drive, 5” screen (800x480)  – WiFi and 3.5G HDSPA network interface. Free Opera browser with Flash Video 9. Specs not completely published – but I hope it can charge via USB.

More specs here

BlackBerry – why it is getting a large following

I just got my new Nokia E71. Shiny nice phone and looks a lot like a RIM BlackBerry. In previous Nokia business phones you could download “BlackBerry Connect” and use the Symbian phone with BlackBerry Servers. But now it seems – the latest Nokia E66 and E71 will not get the BlackBerry Connect software. I do understand RIM if they don’t want Nokia to take part of their handset market, and it is a sensible business decision.

But why are so many attracted to BlackBerry? Well when you have a BlackBerry Data Plan, you can get “unlimited roaming data” packages. So if I’m traveling a lot – then I don’t pay exorbitant roaming charges. In the UAE you can get GPRS unlimited roaming data with Blackberry for about DHS 280 pr. month ($75). And for a business owner that is a very vise decision if your employees travel a lot.

So now where RIM is shutting Nokia out of the BlackBerry network – it must be time for Microsoft, Nokia or others with PushMail clients to start building roaming relationships with mobile providers so you can get same prices using Exchange or Nokia Mobile Mail – as you can with RIM BlackBerry.

If that does not happen, even more people will join the RIM BlackBerry Service –and now as their only “new phone” option will be a RIM handset. RIM sales will quite probably rise. And I would expect with BlackBerry Bold – the first 3G handset – that you will get unlimited worldwide 3G bundles very soon even in the UAE.

So my E71 will never get BlackBerry Connect - and that will mean a lot less potential clients for the close to perfect phone, who dont want an ugly chunky RIM handset.

Come on – Nokia, SonyEricsson, Microsoft and the rest of you. Look at RIMs network model – and make one of your own before we have too many ugly RIM handsets in the wild

S60 VPN IPSec Client from NCP

As you can see we have another VPN client. But still an IPSec client. I would really like a PPTP client. How they will compete with Nokias own VPN client I dont know – but I guess I have to review them both. I just wish Nokia would release their Cisco Pix documentation

—from the press release—

NCP engineering GmbH, a leading provider of endpoint security and VPN solutions, today announced the release of its Secure Entry Client for Symbian OS-based mobile devices.

The new IPSec VPN client can be used on mobile devices such as the Nokia Eseries, which run Symbian OS from V.9.0 on S60 3rd Edition.

[Lots of pr text cut out here]

NCP also offers a Secure Enterprise Client for Symbian, which was released in April 2008 and provides centrally-administered, endpoint policy enforcement.

A 30-day trial version offering unrestricted use of the entry product is available for download at: http://www.ncp-e.com/en/downloads/software.html. The software can be purchased via NCP’s e-store and from the company’s sales partners.

Belkin N1 Vision still sucks

Check the comments page on the Belking N1 – http://kaz911.blogspot.com/2008/03/belkin-n1-vision-review-tale-of-no.html

As you can see complaints keep comming in – and despite a recent firmware update - the problem is still there (I fished the N1 out of the garbage to try again with the new firmware) But still no change - and setting display to power save does not help. It still drops connection and packets all the time, resulting in broken streams, broken skype calls, broken VPN connections etc. etc.

As you can clearly see - everyone have problems and it is a design fault with the Belkin N1 Vision. Belkin should do the right thing and offer every buyer their money back or a replacement router without the problem.

I think there are enough out there now with problems – and many of them do not know it is the N1 Visions fault.

So keep the comments comming on the really poor quality hardware from Belkin!

DELL likes AMD better than Intel

Sometimes LinkedIn is very revealing

LinkedIn have their new beta feature “Companies” where they track all kind of employee movement - and how the employees are connected to different other vendors.

So I checked DELL….

Where in the world is Intel on this list?

Witopia now offers PPTP

You remember I bashed Witopia a while ago due to its usage of the Windows OpenVPN client and their stupid refereres trying to cash in on my page rank for VPN. Well now Witopia VPN has launched a PPTP service, which will offer easier integration than the old OpenVPN stuff.

OpenVPN got lots of problems on Microsoft Platforms - and have given me plenty of headackes. But with PPTP you get little less safe VPN than with open vpn – but no hassels on Windows or iPhone VPN.

Head over to Witopia http://www.witopia.net/ and sign up. And I’m NOT affiliated with them in any way! Performance have never been an issue on Witopia - so they are safe. Use the “iPhone or Whatever option” to get PPTP that works with iPhone and Windows without any problems!

Nokia S60v3 E90 VPN officially available from Nokia

It has been a long wait but now in silence Nokia Business solutions have released an updated VPN client for S60v3.1. So now in theory my E90 should be able to connect to my Cisco Pix

Nokia VPN New features:
Policy Maker application – a windows based software that helps you generate the policy file from your windows desktop. No longer a need for hand making a policy file and then “encrypt” and “sign” it. So a one-step policy file maker!

Nokia E90 optimized!

But the big problem is still that you need a VPN setup (like sip) for EACH of your Network connections. So on settings file for each 3G network. One settings file for each WiFi link. Why the Network settings are not just “online or offline” like iPhone or Windows Mobile – I still do not understand.

Nokia – please solve it so we have a “network connection center” and just can tick off which WWAN/WiFi access points that the VPN should use for tunneling!

But head over to download from
http://www.businesssoftware.nokia.com/mobile_vpn_downloads.php

Unfortunately Cisco instructions are still not there – so if any of you are better VPN experts than me – then please ping me with PIX setup instructions.

What's in the Box? The 3G iPhone Lands Down Under

Just saw this on MacTalk forums and though you deserved to know:

The 3G iPhone Lands Down Under?

Late yesterday afternoon MacTalk received the above photo from a very reliable source who can not be named for obvious reasons (fear of assassination by the Apple Secret Police I presume). Word on the street is that resellers across the country have also received similar packages. As seen by the picture, it's contents are protected under NDA until Tuesday June 10 - does that date ring a bell to anyone?

What's in the Box? The 3G iPhone Lands Down Under - MacTalk Forums.