Found it:
http://iopscience.iop.org/1464-4266/6/6/012
As far as I am aware, Kracklauer did not really "crack" the problem: as a matter of fact I have tested his simulation program and also studied the "laboratory confirmation", but found both of those wanting (of course, I could have made a mistake).
However, perhaps he was thinking in the right direction.
It reminds me of an old thread on this forum, which IMHO left some intriguing questions wide open:
https://www.physicsforums.com/showthread.php?t=490571.
Neumaier argued that from the perspective of QFT the problem is caused by the "particle" concept (that is: countable, unalterable objects), and that in contrast, classical (Maxwellian) EM can break Bell's inequality.
A recently published paper on classical optics seems to make similar suggestions, if I understand correctly what the authors are saying:
" [..] we have presented the first study of nonlocal correlations in classical optical beams with topological singularities. These nonlocal correlations between two different light modes are manifested through the violation of a Bell inequality using the Wigner function for this system of classical vortex beams. [..]
Clearly, the violation of the Bell inequality for classical light fields and the existence of nonlocal correlations bring out totally new statistical features of the optical beams. [..] "
Phys. Rev. A 88, 013830 (2013) -
http://arxiv.org/abs/1307.2981
PS. Note that according to Bell his theorem does not depend on "local hidden variables":
"It is notable that in this argument nothing is said about the locality, or even localizability, of the variables λ."
- Bertlmann's socks and the nature of reality