Denmark’s biggest fraud trial started today with Stein Bagger implicating Swedish businessman Mikael Ljungman as his co-conspirator

A reserved Stein Bagger appeared before Lyngby District Court today admitting his guilt in the massive fraud case that saw him defraud investors of 831 million kroner through his former company IT Factory via a complex leasing scheme.

As the list of 61 counts of fraud and forging of documents were read out, Bagger answered with a steady stream of ‘that’s right’, I forged that’ and ‘I did it’.

And as expected, the 42-year-old defendant confirmed that Swedish businessman Mikael Ljungman was his partner in the scam.

The two met in Stockholm in 2007 and it was Ljungman who lent Bagger his car and credit card when the Danish businessman went on the run to the States. Berlingske Tidende reports that according to the public prosecutor for serious economic crime, Ljungman’s involvement in keeping the leasing carousel running netted him up to 266 million kroner.

Ljungman has been charged as an accomplice and was arrested in Sweden at the end of April, but has denied all charges.

‘This is a clear scam and we’re both aware of it,’ said Bagger today of his involvement with Ljungman.

Bagger told the court that he received almost two million euro in cash from Ljungman between September 2007 and July 2008. Bagger picked up money from a Swedish courier at a Copenhagen Airport restaurant numerous times, as well as at the exclusive French Fregate hotel.

But the more Bagger needed the cash, the more Ljungman apparently wanted from the leasing scheme.

‘I was in a very difficult private situation…and he said that if I was going to get the cash, then the price was doubled. I really needed the money so I accepted it [the condition],’ said Bagger.

When the two cheated Danish company Captive Finance, Ljungman allegedly took 66 percent of the profit, or 5.4 million kroner, while Bagger got the remaining third, 1.7 million kroner.

Having acknowledged all charges, Bagger now faces two more days in court before receiving a possible sentence of up to 12 years on Friday.