How to Hoodwink the World in Business….The Danes must have learnt it from the Indians !…and we, from the Americans !
Would you believe this ?…an IT Company in Denmark was completely fraudulent…fake orders and profits…and it’s promoter was awarded many recognitions !
Below is the whole Transcript of the recent article in Wall Street Journal…Enjoy and see if you can relate the Modus operandi with any Indian IT, or for that matter any sector, Company…Need some help with this then respond to me !
Stein Bagger pleads guilty in $266m Danish fraud case
By ANDREW HIGGINS
Wall Street Journal
For Denmark’s Entrepreneur of Year, Something Was Rotten
Stein Bagger Pleads Guilty to Faking Software Deals; His Ph.D. Was Phony, Too
COPENHAGEN — At a banquet here late last month, accounting firm Ernst & Young feted a Danish software company for runaway growth under Stein Bagger, its dynamic chief executive.
About a thousand guests, including Denmark’s tax minister and leading business people, were there to applaud.
But Mr. Bagger, the night’s big winner, wasn’t there to pick up the accolade of “Entrepreneur of the Year” and two other awards. He was busy fleeing from what investigators now describe as Denmark’s biggest business scam in decades.
Shortly before the banquet began, Mr. Bagger, 41 years old, vanished from a hotel in Dubai. He flew to New York, drove across America and then surrendered to police in Los Angeles. In the meantime, his award-winning company, IT Factory, declared bankruptcy. A liquidator has taken over IT Factory and is sifting through its affairs.
Sent back to Denmark Tuesday, Mr. Bagger cried and pleaded guilty before a Danish court to charges of aggravated fraud and forgery, crimes that could land him in jail for eight years, according to his court-appointed lawyer, Jesper Madsen.
“Most of his business was fake,” says Jens Madsen, head of an economic-crimes unit now investigating the spectacular rise and fall of Mr. Bagger. The entrepreneur also happens to be a former bodybuilder who, before becoming a Danish tech superstar, posed for a Swedish muscle magazine dressed as Superman. He’s now suspected of pumping up IT Factory’s profits — which nearly tripled last year — through phony deals.
The gist of the allegations is that Mr. Bagger used a web of phantom firms to get money from banks and then used these same companies to place big purchase orders for IT Factory software and services. He was buying from himself using other people’s money.