Mikael Ljungman (born 25 November 1963) is a Swedish politician, lawyer and businessman. He was 2009–2010 convicted of fraud and false accounting related to his business activities, for which he served a two-year prison term. He is also known for his association and involvement with two high-profile tech failures: the game console manufacturer
Gizmondo
The Gizmondo is a handheld gaming console developed by Tiger Telematics. It was released in the UK, Sweden and the U.S. starting in March 2005. Its first-party games were developed in studios in Helsingborg, Sweden, and Manchester, England. Giz ...
in 2005 and
IT Factory in 2008. After his release from prison, Ljungman became active in the
Christian Democrats
__NOTOC__
Christian democratic parties are political parties that seek to apply Christian principles to public policy. The underlying Christian democracy movement emerged in 19th-century Europe, largely under the influence of Catholic social te ...
legal policy network.
He was selected as a
Christian Democrats
__NOTOC__
Christian democratic parties are political parties that seek to apply Christian principles to public policy. The underlying Christian democracy movement emerged in 19th-century Europe, largely under the influence of Catholic social te ...
parliamentary candidate for the 2014 Swedish elections, as number 32 on their Stockholm candidate list.
Education
Mikael Ljungman has a Masters of Laws (LL.M.)
from
Stockholm University
Stockholm University ( sv, Stockholms universitet) is a public research university in Stockholm, Sweden, founded as a college in 1878, with university status since 1960. With over 33,000 students at four different faculties: law, humanities, s ...
. He also studied political science.
Association with Gizmondo
Ljungman's company 3P PreForm Marketing and Research began performing research and development work for
Gizmondo
The Gizmondo is a handheld gaming console developed by Tiger Telematics. It was released in the UK, Sweden and the U.S. starting in March 2005. Its first-party games were developed in studios in Helsingborg, Sweden, and Manchester, England. Giz ...
Europe in 2003
and was paid $7.6 million.
After Gizmondo Europe's bankruptcy in early 2006, the liquidators had outstanding questions about Ljungman and his company's involvement with Gizmondo Europe Ltd; they were perfectly satisfied with Ljungman's answers.
In May 2008,
Carl Freer
Carl Johan Freer (born 9 May 1970) is a Swedish businessman and technology entrepreneur primarily known for founding the American company Tiger Telematics, which created the handheld game console Gizmondo. Freer is also the founder of Singap ...
bought Gizmondo Europe's intellectual property rights.
Ljungman worked with Freer on the relaunch of the Gizmondo, with Freer calling him his "co-pilot".
He traveled to China in early 2008 to arrange manufacturing,
a contract purported to be worth $300M.
The relaunch of
Gizmondo
The Gizmondo is a handheld gaming console developed by Tiger Telematics. It was released in the UK, Sweden and the U.S. starting in March 2005. Its first-party games were developed in studios in Helsingborg, Sweden, and Manchester, England. Giz ...
never materialized.
Conviction for false accounting
Ljungman was arrested on 19 October 2004, but released shortly thereafter pending trial.
Ljungman was found guilty of false accounting and tax evasion on 26 January 2009. Ljungman initially received a two-year prison sentence;
which was reduced to 10 months on appeal after the tax evasion charges were dismissed. The sentence included disqualification from running a company in Sweden for five years, which was reduced to three years starting from 2007 after the successful appeal.
Ljungman's appeal went to the supreme court
where it was denied
and he was imprisoned in late April 2009.
IT Factory scandal
In December 2008 Danish company
IT Factory went bankrupt revealing systematic financial fraud. Ljungman was linked to IT Factory's CEO
Stein Bagger
Stein Bagger (born January 20, 1967) is a Danish convicted criminal, former entrepreneur, former CEO of IT Factory. Before bankruptcy of IT Factory and a subsequent fraud scandal, he was named "Danish Entrepreneur of the Year" by Ernst & Young, an ...
,
who went missing four days before the company's collapse was publicly announced.
Bagger fled from Dubai to the United States and eventually surrendered to police in Los Angeles, where he was found to have Ljungman's car and to have used his credit card.
On 9 January 2009 the Deputy Attorney in charge of fraud cases in Denmark announced that they wanted to question Ljungman.
Danish police sent out an arrest warrant for Ljungman via
Interpol
The International Criminal Police Organization (ICPO; french: link=no, Organisation internationale de police criminelle), commonly known as Interpol ( , ), is an international organization that facilitates worldwide police cooperation and cr ...
. He was arrested by Swedish police in
Norrköping
Norrköping (; ) is a city in the province of Östergötland in eastern Sweden and the seat of Norrköping Municipality, Östergötland County, about 160 km southwest of the national capital Stockholm, 40 km east of county seat Link� ...
where he had just started his ten-month sentence in an open prison and was extradited to Denmark on 27 July 2009.
Danish media claimed that the Swedish police had found a fake leasing contract linking IT Factory with Xiop, a Swedish company where Ljungman had worked as Business Developer. This specific claim was denied by the Swedish prosecutor Yngve Rydberg.
Yngve Rydberg also said at the time there was no suspicion of Ljungman being involved in the crimes being investigated in Sweden.
On the first day of his trial Stein Bagger named Ljungman as his accomplice.
On 26 March 2010 Ljungman was convicted of involvement in the IT Factory fraud in Denmark,
and was released under supervision in September 2013 after serving slightly less than half of a seven-year sentence.
Ljungman denied involvement in Stein Bagger's fraud and appealed his sentence,
however as of the time of his supervised release, no successful appeal had been completed. Ljungman claimed he was interested in IT Factory's software ''PaaS'',
that he and Media Power tried to buy when IT Factory was liquidated. The software was instead sold to a German company.
In December 2012, Danish authorities recovered a portion of the money stolen from IT Factory from accounts in Hong Kong and Jersey belonging to Mikael Ljungman.
Political activity
Shortly after he had served his prison term he was selected as a parliamentary candidate for the
Christian Democrats
__NOTOC__
Christian democratic parties are political parties that seek to apply Christian principles to public policy. The underlying Christian democracy movement emerged in 19th-century Europe, largely under the influence of Catholic social te ...
in the 2014 Swedish elections as well as one of their representatives in the municipal elections and county council elections.
References
{{DEFAULTSORT:Ljungman, Mikael
Swedish corporate directors
Businesspeople in computing
21st-century Swedish politicians
Stockholm University alumni
Politicians from Stockholm
1963 births
Living people
Swedish people imprisoned abroad
People extradited to Denmark
People extradited from Sweden
Swedish politicians convicted of crimes