Swedish IT company founders cleared of fraud

Five people have been freed of all charges relating to the bankruptcy of IT company Prosolvia, which collapsed in 1998 amid charges of fraud.

Dan Lejerskär and Morgan Herou, founders of Prosolvia, along with financial chief, Magnus Svernlöv, and company accountant, Nils Brehmer, were charged with false book-keeping and deception in an attempt to raise the value of the company’s shares on the stock market.

According to DN, chief prosecutor Per Lind and his colleague Anette Olsson could not prove the case against Prosolvia so the entire case collapsed.

Prosolvia rode the crest of the early IT-boom in the mid 90s, and shares rose swiftly with the company reportedly worth over four billion kronor at its peak. However, the company went bust in December 1998 leaving thousands of shareholders shocked at the company’s rapid demise.

According to the prosecution, the company built its growth during 1997 through creative accounting. Business deals that weren’t complete or paid for were documented as complete enabling Prosovia to allegedly make a 36 million kronor deficit look like a profit of 80 million kronor.

In response to Monday’s court-ruling Dan Lejerskär, who has lived in the USA since the company went bankrupt, said through his attorney, Jonas Lauritzen, that he was always “convinced he would be cleared” once the court heard Prosolvia’s account of things.

Meanwhile, prosecutors Per Lind and Anette Olsson do not rule out appealing against the court’s decision. “We haven’t had a chance to analyse the court’s ruling yet.”

Sources: Dagens Nyheter, SR