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.