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A Proposed Addition to the FBI Criminal Classification Manual: Fraud-Detection Homicide

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A Proposed Addition to the FBI Criminal Classification Manual: Fraud-Detection Homicide CE Article: 1 CE credit for this article A Proposed Addition to the FBI Criminal Classification Manual: Fraud-Detection Homicide By Frank S. Perri, JD, MBA, CPA, and Terrance G. Lichtenwald, PhD, FACFEI Abstract Behavioral data were located from 27 homicide cases in which fraud, a white-collar crime, oc­ curred either prior to or contemporaneously with each homicide. The homicide cases in this study were classifiedas fraud-detection homicides because either white-collar criminals them­ selves, or assassins they hired, killed the individuals suspected of detecting their fraud. The white-collar criminals who committed murder were sub-classified as ed-collarr criminals. I would have had the . Both the descriptive homicide data and the literature review lend support to three overrid­ ing impressions: red-collar criminals harbor the requisite mens rea, or state of mind, to physi­ wasted, but I’m not sorry for cally harm someone that may have detected, or is on the verge of detecting, their fraudulent behavior; the victim of a red-collar crime does not have to be someone who profiteered, aided, feeling this way. I’m sorry that or abetted in the fraud; and red-collar criminals have a history of antisocial and psychopathic tendencies. Given these conclusions, advocacy for consideration of forensic accountants and I didn’t rub her out, real sorry.” fraud examiners as members of homicide investigation teams to assist in the development of a motive to support the prosecution of red-collar criminals is in order. Statement of a convicted white-collar crimi­ Data gathered in the course of this study indicate the presence of a sub-classification of white- nal regarding the woman who disclosed his collar criminals who are violent and the need for a new homicide classification to be eferrr ed fraud crimes to the authorities (Addis, 1986). to as fraud-detection homicide for inclusion in the FBI’s Crime ClassificationM anual (Douglas, 1992) as an appropriate system for classifying and profiling these murders. This article is approved by the follow - Key Words: red- collar crime, white- collar crime, fraud, motive, detection, homicide, ing for continuing education credit: murder, psychopath, Perri’s Matrix, the Perri-RCM (ACFEI) The American College of Forensic Ex- aminers International provides this continuing education credit for Diplomates. ne of the misconceptions common­ been examined with a single question in mind: (CFC) The American College of Forensic Exam- ly held of white-collar criminals Is imminent threat of detection a sufficient mo­ iners International provides this continuing edu- cation credit for Certified Forensic Consultants. is that they are not like criminals tive for the white-collar criminal to respond who lash out violently. In part, violently? (CBBS) The American College of Forensic Ex- Othis perception is supported by a legal system aminers International is an approved provider of the California Board of Behavioral Sciences, that classifies white-collar crimes as non-violent. The Perri Red-Collar Crime approval PCE 1896. Course meets the quali- fications for 1 hour of continuing education For example, the Dictionary of Criminal Justice Matrix (RCM) credit for MFTs and/or LCSWs as required by Data Terminology, published by the Federal Examining 27 murder cases revealed that for the California Board of Behavioral Sciences. Bureau of Justice Statistics, defines white-collar this sub-group of violent white-collar crimi­ (APA) The American College of Forensic Exam- crime as “non-violent crime for financial gain nals, threat of fraud detection is a motive to iners is approved by the American Psychologi- committed by means of deception . irrespec­ kill: hence the name, fraud-detection homicide. cal Association to sponsor continuing education for psychologists. ACFEI maintains responsibility tive of the person’s occupation” (1981). The This sub-group is referred to as red-collar crim­ for this program and its content. study at hand examined types of white-collar inals because they straddle both the white-collar (NBCC) The American College of Forensic Ex- crime involving issues of fraud-based crime. crime arena and, eventually, the violent crime aminers International is an NBCC Approved The descriptive data indicates that a sub­ arena. In circumstances where there is threat Continuing Education Provider (ACEP) and may group of violent white-collar criminals exists of detection, red-collar criminals commit bru­ offer NBCC approved clock hours for events that meet NBCC requirements. The ACEP soley and, moreover, that certain behavioral factors tal acts of violence to silence the people who is responsible for all aspects of the program and may contribute to or motivate a white-collar have detected their fraud and to prevent fur­ its content. criminal to resort to violence. The data has ther disclosure. 18 THE FORENSIC EXAMINER Winter 2007 A Proposed Addition to the FBI Criminal Classification Manual: Winter 2007 THE FORENSIC EXAMINER 19 In terms of societal perception, the work First, information from murder cases where A review of the definitions for these sub-clas­ of Cullen, Clark, Mathers, and Cullen fraud pre-dated the murder was assembled, and sifications demonstrates the distinctive nature (1983) significantly indicated that people second, for the purpose of visual comparison, of fraud detection homicide cases—cases that perceived white-collar offenses, though information from each case was broken down do not fitinto any of the sub-classificationsfor not associated with violence, as having into identifiable variables (i.e., type of fraud, age criminal enterprise homicide most significant­ greater economic and moral costs and repercussions than conventional street and gender of defendant, relationship to victim, ly because the killer’s motive in fraud-detection crimes. The public perception and crimi­ etc.). The Perri-RCM was developed to distin­ homicide does not parallel the motives in the nal classification of such crimes as non­ guish behavioral inferences from other evidence criminal enterprise homicide sub-classifications. violent does not preclude the offender gathered during both the investigation and sub­ None of the sub-classifications offers fraud de­ from being violent. sequent trials. Clearly, the pattern characteris­ tection as a motive to kill. tics in the Perri-RCM are not all-inclusive, and Secondly, by the sub-classification definitions, as more cases are analyzed, the Perri-RCM can in order to receive the hoped-for material gain, be modified to accommodate additional char­ the murder must firstoccur . However, in fraud acteristics that may be useful for profiling. detection homicide, the material gain pre-dates The different sub-classifications Third, the information was structured into a the murder—it is the threat of detection that of criminal enterprise homicide matrix. In each case where the murderer (defen­ motivates the kill. For example, in insurance/ dant) was involved in the fraud, the case is identi­ inheritance homicide, the murder is the condi­ fied by the defendant’s last name, which appears at tional antecedent event that must take place in Contract killing: A contract killer is the top of the matrix (see Table 1). For example, order to receive the gain; whereas, in the fraud one who kills by secret assault or Case 1 is titled “Hansen.” George Hansen served detection homicide case, the killer already has surprise for profit. There is usually an as the initial case study, thus the case is identified received the material gain, and murder is not a absence of relationship between the killer and victim. by his last name. The only cases not listed by the pre-condition for its receipt. name of the defendant (but include the names of A new homicide classification system is rec­ Gang-motivated: A gang is an or­ the victims) are the Gamov (23), Kholodov (24), ommended to categorize the type of murders ganization, association, or group Klebnikov (25), Hovasapian (26), and Kozlov presented in this study, and the FBI Crime that has as one of its primary activi­ (27) cases. In these cases, the killers have not been ClassificationM anual would seem an appropri­ ties the commission of antisocial be­ brought to justice. ate forum for categorizing and profiling these havior and criminal acts, including To begin, the proposed crime classification, homicides. With the inclusion of fraud-detec­ homicide. Homicides are associated fraud-detection homicide, is compared to the exist­ tion homicide in the manual, further research with territorial struggles. ing FBI homicide classification to illustrate why may be conducted on collected data to refine Criminal competition: Death in this fraud detection homicide should be considered as a what traits a red-collar criminal harbors in or­ type of homicide is a result of orga­ separate classification. Secondly, where the behav­ der to improve profiling these killers. nized crime over control of territory. ioral aspects of red-collar criminals are compared to those of non-violent white-collar criminals, The Threat of Fraud Detection—A Kidnap murder: Kidnap murder des­ the focus is limited to concerns of psychopathy, Motivation for Murder ignates persons taken against their societal misconceptions of murder defendants, In each of the 27 cases presented, the murderer(s) will and for a variety of motives, such ideation factors, and actual homicide case studies belonged to the sub-group of red-collar criminals, as a demand for ransom. illustrating fraud-detection homicide. and each demonstrated the capability of unleash­ In an interesting aside, red-collar Russian cases ing heinous and brutal violence toward individu­ Product tampering:Death results from contact with a commercial product that are compared to American murders. And last­ als they believed had detected, or were in a posi­ has been sabotaged by the offender ly, the role of forensic investigators in uncover­ tion to detect, their fraud schemes and potentially whose motive is financial gain. ing homicidal motive and its importance in the reveal such information to third parties.
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