James and Janet Baker spent nearly two decades building a remarkable technology company in Newton, only to see their fortune disappear in a puff of fraudulent smoke. They’ve spent the last decade in court trying to get it back.
The Bakers built the voice recognition software company Dragon Systems from scratch and eventually sold it for $580 million to a Dutch company, Lernout & Hauspie, in 2000. Just two months later, news accounts detailed bogus international sales that had boosted the buyer’s financial statements. Soon, the entire business collapsed in a bankrupt heap.