Stein Bagger Pleads Guilty to Faking Software Deals; His Ph.D. Was Phony, Too

by Volker Weber

Interesting twist in the Wall Street Journal story:

Mr. Svensson also sent warnings about IT Factory to International Business Machines Corp. A member of IBM's European Business Partner Advisory Board, Mr. Svensson sent a long email to IBM managers in Denmark describing IT Factory as a "house of cards" liable to collapse.

"Something is completely wrong," he wrote, warning that Mr. Bagger posed a risk to IBM's own reputation as IT Factory "in all contexts positions itself very close to IBM." Mr. Bagger, whose company had offices in India and the U.S., often boasted of close ties to IBM and helped sponsor a big IBM software conference in Florida.

An IBM spokesman, citing the current criminal investigation, declined to comment on what, if anything, was done in response to Mr. Svensson's messages.

A few months after Mr. Svensson's warning, IBM Denmark named Mr. Bagger's company as the year's "Best Partner" in a software business line. The head of IBM Denmark this year hailed IT Factory as "creative and visionary." IBM has now filed a claim with IT Factory's liquidator to try to get back the 125 million kroner ($23 million) it says it is owed by Mr. Bagger's now defunct company.

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