"I won't disclose the particulars of any conversations we have had with him," the immigration spokeswoman said.

IT Factory, which provides hosted applications on IBM's Lotus platform, had reported soaring financial results for the past few years, and Bagger was heralded as one of Denmark's leading high-tech entrepreneurs. Then things started to unravel.

Computerworld Denmark, along with an independent reporter, , published a series of investigative articles that questioned IT Factory's business contracts and leadership. The company is now thought to have created fake contracts with companies that did not exist, and then sold the contracts to banks and other investors. IT Factory filed for bankruptcy early last week, and its chairman estimated that 90 percent of the company's turnover had been fictitious.

The immigration department has been in touch with the Danish consulate in Los Angeles to keep them apprised of Bagger's repatriation progress, the immigration spokeswoman said. A representative at the consulate declined to discuss the matter.

Neither could say exactly when Bagger would be returned to Denmark. He is likely to be escorted by law enforcement officials and handed to the Danish authorities in Copenhagen.