Thursday, March 25, 2010

"FBI To Track Missing Millions From the IT-Factory Scandal"

The Danish business newspaper Borsen claims (March 25) that the Federal Bureau of Investigation will try to track down 52 million missing dollars that Stein Bagger bilked out of unsuspecting customers in the IT Factory scandal. Bagger was recently sentenced to seven years in prison for fraud, and his partner Mikael P. Ljungman (to the left in the photo) is now awaiting his verdict.

Mikael Lungman was also partner to Carl Freer in starting up Media Power in New York, a company that was quickly dissolved after the IT Factory story broke. Carl Freer took his business back to the West Coast, focusing on a reorganized GetFugu, which was turned into a stock company early last year.

The Danish news site The Copenhagen Post writes that “Denmark’s fraud police have given the FBI information leading to the money via Mikael Ljungman – whose guilt or innocence in the year-long IT Factory case will be decided tomorrow by the High Court – who operated the company through which Bagger defrauded numerous banks and investors.”

Quoting Børsen, The Copenhagen Post writes “the investigation is partly being conducted through the American Embassy in Copenhagen, where thousands of pages of documentation regarding the case are being reviewed. The FBI reportedly offered the Danish police half of what they recover in exchange for the information, although that agreement must first be approved by Boris Frederiksen, the lawyer acting on behalf of the state for the recovery of IT Factory’s assets.”

The Danish police suspects that much of the missing money “were laundered by Ljungman through companies operated in the US by Swedish businessman Carl Freer…”

“Prosecutors say that Media Power’s assets were built upon those of its subsidiary Ecommerce, which itself was supported by the fraudulent funds of IT Factory.
Immediately after taking out the patents, Freer sold them to his own company Getfugu, against shares valued at 67 million dollars. Ljungman has pleaded not guilty to the fraud charges and Freer’s attorneys have denied all allegations of wrongdoing on his and his companies’ parts.”

When I asked Carl Freer to comment on the FBI-report, he answered that “the claims are incorrect.” He sees this as just a reflection of allegations in a "sham civil suit" from his former business partners.

Hans Sandberg

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