The beginning of what promises to be a fascinating story (and possibly a Hollywood movie) around the rise and fall of Denmark’s IT Factory is starting to emerge. In late November celebrated CEO Stein Bagger went missing in Dubai – it later turned out he abandoned his wife and child and fled to New York as his company fell apart.
He then borrowed a friend’s car and credit card and took embarked on quite a road trip to California, where he promptly turned himself in to local police.
Danish media tracked him down for an interview (translated version is here). Among the first questions they asked: Why did you perpetuate a four year fraud that involved $170 million or so in fraudulent revenues (90% of IT Factory’s revenues may have been nothing but lies)?
I have been threatened on my own and my family’s life, and I have been threatened with firearms between 25 and 30 times. He would not say who threatened him, but told that they would have money from him.
Everyone’s always sorry after they get caught.
This does sound like a hollywood movie. I wonder how many other CEOs will go on the lamb come 2009. There could be alot of cooked books in this economy.
The way this is unfolding you could open the movie with Stefan (Mr. Gizmondo) crashing his Ferrari in Malibu.
Not to make light of this financial bilking but 10 to 1 they would use “Hollywood OS” on every laptop screen shot.
Sorry about this being danish. But someone compiled a funny version of what Baggers facebook feed might look like.
Check it out here:
http://www.what...-facebook-feed/
Now the question is: Are these crocodile or real tears?
There is a new episode of this every day.
Mob justice is ugly. This is a good example from the comments seen so far.
That sounds pretty rough. It’s too bad that threatening people with guns isn’t illegal in Denmark, or else he could have called the police.
In America, investment loss is considered capital loss. You write this off as a business loss or as an income loss in your tax filing. There’s no need for violence.
The government takes taxes to provide protection to any human in the event situation like this occur.
The people who are threatening might be laundering money. That’s a crime.
This shows how a recession can be bring out a beast within us!
“90% of IT Factory’s revenues may have been nothing but lies”
Mike, this is Chris @ Culver City, why would you ever report more than you make?
That’s asking the IRS to come overtax you for 90% over your real earnings???
Aside from the fact that he was probably on crack at the time, what would motivate people to pay more in taxes by over-reporting earnings?
“He would not say who threatened him, but told that they would have money from him. ”
http://www.tech...ldwide-manhunt/
Well, in your last post about him, you claimed that he had paid a motorcycle gang(Hell’s Angels) to beat the crap out of somebody he didn’t like.
Don’t you see them trying to extort him for years after doing so in exchange for not telling anybody about it?
I can believe he was threatened. I can even see that gang being mad at you personally for mentioning them on a forum that sees 1.7 million readers. They’re like that.
If executive compensation is based on purported company income, the *executives* have lots of incentive to falsify earnings.
What’s good for the goose is not good for the gander in this case…
Jorge, there’s no way that’s the reason. Arrington thinks like these people. He knows the real reason. So what is it Mike??
Hmmm….super sorry…..great…..does that cut it for $170MM in lies?
If I can have that 170M…s I might not be threatened just with 30times guns from fraud people in habitual practice like Him…I could be their deadliest treat at 100times….But with my face on IT business..I’m afraid business as usual could never be a fraud but suck.
Adding to the Hollywood storyline: a 4.8 earthquark hit Copenhagen then Stein Bagger touched down from LA.
The first earthquark this size ever!! Any good Hollywood screenwriter will make the connection….