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. prosecution of these defendants is discussed. Initially, and prior to any violent act, the Drug murder: Defined as the murder white-collar criminal characteristics were pre­ of an individual deemed an obstruc­ Fraud-Detection Homicide and Criminal dominant in each murderer. As white-collar tion in order to facilitate the prolifera­ Enterprise Homicide: A Distinction criminals, they wished to divert attention from tion of an illegal drug business. A literature review does not reveal any classifi­ their fraudulent schemes. Unlike other homi­ cation or definition for white-collar criminals cides, violent white-collar criminals who turn Insurance/Inheritance: The victim is murdered for insurance and/or in­ who murder due to their fraud crimes being red prefer to operate clandestinely without at­ heritance purposes. detected; further, the FBI Crime Classification tracting attention to themselves, though it is fair Manual (CCM) (Douglas, 1992) does not in­ to suspect that each red-collar murderer realized Commercial profit: Murder to gain clude an appropriate category for the murder that in committing a violent act, he or she was control of a business or to profit from cases scrutinized in this study. potentially increasing the risk of exposure. the business. The FBI classification most similar to the ho­ The data reveals the following: each murderer micides presented in this study was the “Criminal had fraud detection as a motive to kill; a blitz style Felony-murder: Property crime (rob­ Enterprise Homicide” classification; however, the attack occurred in 21 out of 27 murders; and the bery, burglary) is the primary motiva­ classification does not fit this study’s fact patterns. killers demonstrated sadistic tendencies—over-kill tion, where during the commission of a violent crime, a homicide occurs. Criminal enterprise homicide “entails murder occured in 19 out of the 27 murders. In referenc­ committed for material gain.” ing the Perri-RCM, it is interesting to note that

20 THE FORENSIC EXAMINER Winter 2007 in the majority of the American cases revealing Many cannot resolve the cognitive dissonance overkill, the defendant intimately knew the vic­ that occurs among members of a community White-collar criminals are tim; for example, the victim was either a relative who are asked to believe that a red-collar crimi­ or had been a coworker. nal who has assimilated so well—wearing suits not people who are threaten­ The behavioral data raises questions about the and ties and belonging to many of the same so­ extent to which red-collar criminals are willing cial groups as they do—is capable of murder. In ing the lives of others. They to assume risk of detection (both for the violent short, we resist the notion that people who look act and for the underlying white-collar crime) like “us” behave brutally. Red-collar criminals are not violent people.” in order to maintain anonymity. In some re­ feed upon this misconception to create smoke spects, the suggestion that the red-collar crimi­ screens about their motives. Inaccurate statement of a Federal District nal is willing to risk exposure in order to main­ A background investigation of the red-collar Court Judge commenting on white-collar tain anonymity appears contradictory. Yet, the criminals identified on the Perri-RCM does not criminals (Wheeler, Mann & Sarat, 1988). inclination to physical violence as a solution support the suggestion that these persons some­ distinguishes these fraudsters from non-violent how acted out of character when they committed white-collar criminals. murder. In fact, quite the opposite holds true: the capacity to kill without remorse was a seed Psychological Factors inherent in the red-collar criminal that germi­ There were several e-mail correspon­ The misconception that white-collar criminals nated when the proper conditions surfaced. dences between Porco and his parents are not like violent criminals is widely held. that exemplifiedthe tension between the Those who hold this view argue that white-collar Psychopathy parties when the parents confronted him criminals experience a moral lapse, and then en­ As suggested by the Hare Psychopathic Checklist about his fraudulent behavior and threat­ gage in fraudulent behavior. The misconception (see Exhibit 1), the defendants listed in the Perri- ened to go to the authorities to take ac­ of nonviolence and moral lapse is reflected in our RCM had documented histories of exhibiting tion against him. In one e-mail, his father legal system where crimes involving fraud are re­ both antisocial behaviors as well as moderate to wrote: “Did you forge my signature as a ferred to as crimes of moral turpitude. Crimes above-moderate psychopathic traits—traits such co-signer? What the hell are you doing? of moral turpitude reflect behavior that violates as being superficially charming, egocentric, in­ You should have called me to discuss it … moral sentiment or accepted moral standards of sincere, manipulative, and exploitative—all for I’m calling Citibank this morning to find the community. Although street criminals are the sake of self-gratification. For example, the out what you have done and am going to assumed highly likely to recidivate, white-collar forensic psychologist in the Sante Kimes cases, tell them I’m not to be on it as co-signer” offenders are thought to be “one-shot” criminals, Dr. Arthur Weider, stated that Sante demon­ (Lyons, 2005). not likely to be processed into the justice system strated psychopathic personality features with The next day, Citibank informed an following an initial brush with the law. “no guilt, conscience, remorse, or empathy;” amazed Peter Porco that his son had also Weisburd, Chayet, and Waring (1990), how­ adding that Sante was “socially charming, ar­ obtained a line of credit to purchase his ever, provide data that does not support this rogant, full of herself, [and] egocentric coupled new Jeep Wrangler. Again, Christopher popular belief regarding the limited criminal ac­ with a superiority complex” (King, 2002). In had used his father’s name as co-signa­ tivity of white-collar criminals. They found that the Hansen (1), Porco (6), and Kimes cases (17­ tory to secure the auto loan. The parents adult defendants convicted under white-collar 18), professionals knowledgeable in psychopa­ tried to contact Christopher via the phone, crime statutes are often repeat offenders. The thy agreed that all these defendants exhibited but Christopher would not talk to them. In results of the Weisburd et al. study contradict psychopathic traits. another e-mail, the father wrote, “I want the prevailing notion that if white-collar crimi­ The murderers cited in the Perri-RCM are you to know that if you abuse my credit nals do engage in violent acts such as murder, persons who considered themselves extremely again, I will be forced to file forgery af­ the act is, somehow, a fluke—an act analogous clever and who rarely learned from past nega­ fidavits in order to disclaim liability and to a crime of passion where the person’s state of tive experiences. Prior police encounters had that applies to the Citibank college loan mind would normally not commit such vicious no bearing on their current antisocial behavior, if you attempt to reactivate it or use my violence, and where there is little or no likeli­ as in the Petrick case (12), where the defendant credit to obtain any other loan” (Lyons, hood for relapse. had numerous prior convictions for fraudulent 2005). Both literature and data suggest that the red- behavior. Even though many of the red-collar collar sub-group is capable of functioning in criminals did not have criminal histories, they conventional society, to a large measure, because had exhibited antisocial behavior—they simply so few grasp, until a murder arrest is made, that had not been caught. A unifying characteristic of red-collar criminals are truly different from both the defendants in the Perri-RCM was the ability white-collar criminals and ordinary people. It is to assess the vulnerabilities of both the organiza­ incorrect to assume that both white-collar and tions and individuals from whom they stole. red-collar criminals share the same value system On the May 4, 2005, CNN airing of the with the majority of society solely on the basis Larry King Show titled, “Inside the Mind of of the observation that they engage in many of a Psychopath,” veteran FBI profiler Gregg the same “normal” societal activities—they work, McCrary said, “I think psychopaths are the go to school, have families—in other words they best natural psychologists out there . . . they “blend in” (Hare, 1993). read vulnerabilities, they read people, and they

Winter 2007 THE FORENSIC EXAMINER 21 Table 1: Perri's Red-Collar Matrix

Pattern Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Case 8 Case 9 Case 10 Case 11 Case 12 Case 13 Characteristics Hansen Dyleski Fawaz Farraj Porco Bernal Bernal Barajas Barajas Johnson D 'Antonio Petrick Adamson

Underlying Embezzlement Credit Card Mortgage Mortgage Loan Mortgage Mortgage Mortgage Mortgage Insurance Off-Book Check/Credit Land White-Collar Crime Fraud Fraud Fraud Fraud Fraud Fraud Fraud Fraud Fraud Fraud Fraud CardFraud Fraud

Idolatry Mafia Jack the Ripper Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown No

Mental Disorder Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown No

Weapon Used Hammer Blunt/knife Blunt object Blunt object Ax Gun Gun Gun Gun Gun Gun Tape/Chains Bomb

Source of Violence Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant

Place of Murder Victim Office Victim Home Victim Office Victim Office Victim Home Victim Home Victim Home Victim Home Victim Home Victim Home Victim Home Unknown Public

Fraud Detection by Victim 3rd party 3rd party 3rd party Victim Victim/3rd Victim/3rd Victim/3rd Victim/3rd Victim/3rd Victim Victim Victim Victim/3rd Party? Victim participate No No Unknown Unknown No No No No No Yes No No No in WCC? Victim (Gender) Female Female Male Male Male Female Male Female Male Male Male Female Male

Victim (Age) 69 52 27 27 52 56 64 56 64 Unknown 23 57 47

Victim Injury Head Head Head Head Head/body Head Head Head Head Head Head Asphyxiated Body

Victim (Race/Ethnicity) White White Arabic Arabic White White White White White White White White White

Victim’s Body Found? Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes

Victim’s Occupation Bookkeeper Lawyer Student Student Lawyer Bus. owner Bus. owner Bus. owner Bus. owner Editor Music Tracker Musician Reporter

Victim Occupational WC WC WC WC WC WC WC WC WC WC Unknown WC White Collar Status VictimsRelatedtoeachother? NA NA NA NA Yes Yes Yes Yes Yes NA NA NA NA

Victim Related to No No No No Yes No No No No No No Yes No Defendant? Victim Debt Problems Unknown Unknown Unknown Unknown No Unknown Unknown Unknown Unknown Unknown Unknown No No

Victim have a Prior No No Unknown Unknown No Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Criminal Record? Defendant (Gender) Male Male Male Male Male Female Male Male Male Male Male Male Male

Defendant (Age) 64 16 30 28 22 31 31 27 27 60 42 51 Unknown

Defendant (Race White White Arabic Arabic White Hispanic Hispanic Hispanic Hispanic White White White White /Ethnicity) Defendant’s Occupation Salesperson Student Loan Proc. Loan Officer Student Real Estate Real Estate Handyman Handyman Lawyer Record Promoter Consultant Business Owner

Defendant Occupational WC Student WC WC NA White-collar White-collar Blue Collar Blue Collar White-collar White-collar White-collar White-collar Status Defs.Relatedtoeachother? NA NA No No NA Yes/Cousin Yes/Cousin Yes/Cousin Yes/Cousin NA NA NA No

Def. Debt Problems? Yes Unknown Unknown Unknown Yes Unknown Unknown Yes Yes Unknown Unknown Yes Unknown

Defendant Prior No No Unknown Unknown No Unknown Unknown Unknown Unknown Yes Unknown Yes Unknown Criminal Record? Defendant Relationship Coworker None Coworker Coworker Son Bus. Assoc. Bus. Assoc. None None Co-conspir. Coworker Husband None to Victim Found Guilty by Jury? Yes Yes Yes Yes Yes NA NA Yes Yes Yes Yes Yes Yes

Offense (murder) 1st Degree 1st Degree 2nd Degree 2nd Degree 2nd Degree 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree 2nd Degree

Defendant Admit No No No No No Yes Yes No No No No No No to Murder? Overkill? Yes Yes Yes Yes Yes Yes Yes Yes Yes Unknown Unknown Yes Yes

Incriminating Statements? Yes Yes Yes Yes Yes Yes Yes Yes Yes Unknown Unknown Yes Unknown

Concealment of Evidence? Yes Yes Yes Yes Yes Yes Yes Yes Yes Unknown Unknown Yes Unknown

Blood Splatter Evidence? Yes Yes Yes Yes Yes Yes Yes Yes Yes Unknown Unknown No Unknown

Computer Evidence? No Yes No No Yes No No No Unknown Unknown Unknown Yes Unknown

DNA Evidence? Yes Yes Yes Yes Yes Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Murder Plan? No Yes No No Yes Yes Yes Yes Yes Unknown Unknown Yes Yes

Shoe Print Evidence? No Yes Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

22 THE FORENSIC EXAMINER Winter 2007 Case 14 Case 15 Case 16 Case 17 Case 18 Case 19 Case 20 Case 21 Case 22 Case 23 Case 24 Case 25 Case 26 Case 27 Dunlap Gaede Basile S. Kimes K. Kimes Hanson Hanson Hanson Hanson Gamov Kholodov Klebnikov Hovasapian Kozlov

Underlying Land ID Theft Insurance Fraud MortgageFraud MortgageFraud ID Theft/Forgery ID Theft/Forgery ID Theft/Forgery ID Theft/Forgery MoneyLaundering Off-Book Money Tax Tax White-Collar Crime Fraud Fraud Laundering Fraud Fraud

Idolatry No Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown No No Unknown No

Mental Disorder No Unknown Unknown Yes Unknown Unknown Unknown Unknown Unknown Unknown No No Unknown No

Weapon Used Bomb Gun Gun Gun Gun Gun Gun Blunt Force Blunt Force Arson Bomb Gun Bomb Gun

Source of Violence Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant Defendant Unknown Unknown Unknown Unknown Unknown

Place of Murder Public Defs. Home Victim Home Victim Home Victim Home Victim Home Victim Home Victim Home Victim Home Victim Home Victim Office Public Victim Home Public

Fraud Detection by Victim 3rd Party Victim Victim Victim NA NA NA NA Victim Victim Victim Victim Victim Victim/3rd Party? Victim participate No No No Yes Yes No No No No No No No No No in WCC? Victim (Gender) Male Male Female Male Male Male Female Male Female Male Male Male Male Male

Victim (Age) 47 Unknown 28 63 63 57 55 31 31 Unknown Unknown 40 Unknown 41

Victim Injury Body Body Body Head Head Head Head Body Body Body Body Head Body Head

Victim (Race/Ethnicity) White White White White White White White White White White White White White White

Victim’s Body Found? Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Victim’s Occupation Reporter Painter Unknown Businessman Businessman Bus. Owner Unknown Bus. Owner Bus. Owner Gov. Employee Reporter Reporter Gov. Employee Gov. Employee

Victim Occupational White Collar Blue Collar Unknown White Collar White Collar White Collar Unknown White Collar White Collar White Collar White Collar White Collar White Collar White Collar Status VictimsRelatedtoeachother? NA No NA NA NA Yes Yes Yes Yes NA NA NA NA NA

Victim Related to No No No No No Yes Yes Yes Yes No No No Unknown No Defendant? Victim Debt Problems No Unknown No No Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Victim have a Prior Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Criminal Record? Defendant (Gender) Male Male Male Female Male Male Male Male Male Unknown Unknown Unknown Unknown Unknown

Defendant (Age) 47 42 Unknown 69 29 30 30 30 30 Unknown Unknown Unknown Unknown Unknown

Defendant (Race White White White White White White White White White Unknown Unknown Unknown Unknown Unknown /Ethnicity) Defendant’s Occupation Land Developer Manager Unknown None None None None None None Unknown Unknown Unknown Unknown Unknown

Defendant Occupational White-collar White-collar Unknown NA NA None None None None Unknown Unknown Unknown Unknown Unknown Status Defs.Relatedtoeachother? No NA No Yes Yes NA NA NA NA Unknown Unknown Unknown Unknown Unknown

Def. Debt Problems? Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Defendant Prior Unknown Unknown Yes Yes Yes Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Criminal Record? Defendant Relationship None Friend None Friend Friend Father Mother Brother-in-Law Sister Unknown Unknown Unknown Unknown Unknown to Victim Found Guilty by Jury? Yes Yes Yes Yes Yes Pending Pending Pending Pending NA NA NA NA NA

Offense (murder) 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree 1st Degree NA NA NA NA NA

Defendant Admit No No No No No No No No No NA NA NA NA NA to Murder? Overkill? Yes Yes No No No Unknown Unknown Unknown Unknown Unknown Yes Yes Yes Yes

Incriminating Statements? Unknown Yes Unknown Yes Yes Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Concealment of Evidence? Unknown Yes Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Blood Splatter Evidence? Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Computer Evidence? Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

DNA Evidence? Unknown Yes Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Murder Plan? Yes Yes Yes Yes Yes Unknown Unknown Unknown Unknown Yes Yes Yes Yes Yes

Shoe Print Evidence? Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown

Winter 2007 THE FORENSIC EXAMINER 23 can exploit those things fairly well” (CNN, sionals evaluating the case. He had left a trail of Exhibit 1: The Personality and 2005). Another member of King’s panel, Dr. deceitful behavior: he was known to have ma­ Behavioral Traits Identified by Martha Stout, psychologist and instructor at nipulated college transcripts, he had burglarized Hare (1991). Harvard Medical School noted, “a psychopath both his parents’ home and that of his former doesn’t have to fit all of the traits. I think three employer, and he had fraudulently obtained Psychopathy Personality Traits or more [traits] begins to make you suspect that loans using his parents as co-signers without & Behavioral Characteristics you’re dealing with a sociopath or a psychopath” their knowledge. During a six-hour police inter­ (CNN). view, he revealed further traits associated with 1. Glibness/superficial charm The criminals studied demonstrated an in­ psychopathy: lying, impulsivity, grandiosity, 2. Grandiose senses of self-worth ability to accept defeat and had little remorse or callousness, lack of remorse, and no emotional 3. Need for stimulation/ guilt for their predatory attitudes. In some re­ response to the murder (Porco, 2005). proneness to boredom spects, the red-collar criminal exhibits reptilian 4. Pathological lying qualities of deception and attack; they are true Behavioral Distinctions between 5. Conning & manipulative “intra-species predators” that use violence to con­ Red- and White-Collar Criminals 6. Lack of remorse or guilt trol others (Hare, 1993). The presiding judge in Non-violent psychopathic white-collar crimi­ 7. Shallow affect one of the Sante Kimes cases stated, “It is clear nals share similar psychopathic attributes with 8. Callous & lack of empathy that Ms. Kimes has spent virtually all of her life red-collar criminals, however, the distinction 9. Parasitic lifestyle plotting and scheming, exploiting, manipulating, for the red-collar criminal lies in the factors 10. Poor behavioral controls and preying upon the vulnerable and the gullible that contributed to and defined their person­ 11. Promiscuous behavior at every opportunity” (King, 2002). As for her alities and allowed them to perceive violence as 12. Early behavioral problems son Kenny, he too was a “remorseless predator” a viable solution (Belmore & Quinsey, 1994). 13. Lack of realistic short-term (King). In an email to the lead author of this project, goals In the case of fraud detection, red-collar crimi­ Dr. Willem Martens (2003) wrote, “the internal 14. Impulsive nals perceive the fraud detection as an existential world of the psychopath is very complex and is 15. Irresponsible threat, a blow to their self-concept, and, conse­ determined by many dimensions.” Many white- 16. Fails to take responsibility for quently, as an act of “self” preservation, they are collar psychopaths exhibit antisocial traits, but one’s actions willing to resort to violence. As the threat of de­ not violent traits, as verified by their criminal 17. Many short-term marital/inter­ tection increases, so does the probability that the histories. What might be an explanation for personal relationships individual will rationalize murder as a solution the distinction? 18. Juvenile delinquency to his or her problems. In the Hanson case (19­ Although not specifically referring to vio­ 19. Revocation of conditional 22), when the sister had detected her brother’s lent white-collar criminals, Martens’ (2003) release fraud, he threatened to kill her if she told their research indicates that violent psychopaths 20. Criminal versatility parents that he was stealing thousands of dol­ may have determinants such as deep-rooted lars from them through fraud schemes (Rozek, antisocial coping strategies as a result of past 2007). negative environmental factors. Thus, if an in­ In the Hansen (1), Porco (5), Dyleski (2), dividual already harbors psychopathic traits, Bernal (6 & 7), Barajas (7 & 8), and Petrick (12) being raised in an extremely antisocial envi­ cases, sadistic violence was unleashed shortly after ronment may solidify the use of violence as a these criminals realized that their white-collar be­ solution. Violence is perceived as an effective havior might be exposed to the authorities. Either strategy to reach goals, especially if the psycho­ they had been confronted by the victim about path perceives the world as a snake pit where their wrong-doing or the probability of detection there are only winners and losers. Psychological was very high. The red-collar criminal’s sudden restraints on their criminal behavior are weak­ outburst is a response to perceived provocation ened by their jungle view of society (Stotland, and is enough to propel him or her to commit 1977). In addition, research has shown certain violence (Hare, 1993). The case histories in the neurobiological factors to be linked to impul­ Perri-RCM further bear this out, and this is why sivity, recklessness, and violence; further, vio­ so many of the murders have a “blitz-like” qual­ lent psychopaths may also have a need to re­ ity. store their sense of self by silencing the victim Poor behavioral controls and poor planning whom they believe is threatening to them in abilities also explain why the red-collar crimi­ some manner (Martens, 2003). nal is incapable of becoming a successful violent Dr. Martens' research is supported by other criminal (Perri & Lichtenwald, in press, b). For researchers who consider dysfunctional envi­ example, Christopher Porco used an axe to kill ronment a factor to consider; however, one is his sleeping father in bed, but tried and failed compelled to examine cases where there is no to murder his mother, who was sleeping next to evidence of a negative environment. Take, for her husband. example, the Porco case where all indicators Warning signs of the younger Porco’s psycho­ pointed to anything but a poor environment. pathic qualities were later confirmedb y profes­ He came from an upper-middle class home, re­

24 THE FORENSIC EXAMINER Winter 2007 ceived quality parenting, and had siblings who getting arrested. Moreover, the non-violent psy­ There are, perhaps, those were well-adjusted. Chris Porco had the upbring­ chopath may be able to better assess the risk- ing of a privileged child. reward tradeoff associated with committing a who are simply born with The Porcos of the world force researchers to violent act. Yet, Martens (2003) acknowledges psychopathic traits and consider that there are, perhaps, those who are that, although psychopathic white-collar crim­ simply born with psychopathic traits and who inals are non-violent, this does not imply that who conceal them until the conceal them until the proper factors converge they are not destructive in their own way, but proper factors converge and reveal those traits. that they manifest their destruction differently. Their methods might be characterized as a “slow and reveal those traits.” Mal Animo: “Evil Mind” bleed.” Thus, we have psychopathic white-col­ One must consider what lies at the core of the lar criminals who bring down organizations that violent psychopath’s personality structure: red- are forced to claim bankruptcy, leaving hundreds collar criminals do not reject violence as a solu­ without livelihoods and/or investments. Exhibit 2: Fraud Detection tion to a perceived problem, so killing is just as In one white-collar crime study known as the Homicide Investigation Profile viable a solution as using deceptive and manip­ Maxwell Scandal, Dr. Basia Spalek (1999) ex­ ulative characteristics to satisfy their needs. At amines the impact of white-collar crime on the I. Employment of victim their core, they harbor a toxicity that does not victims. In this case, the white-collar criminal, II. Business owner or employee exist in, or is not as pronounced in, the non-vi­ Robert Maxwell, had stolen countless millions III.Victim occupational status: olent psychopathic white-collar criminal. The of dollars from investors. In the study the au­ blue-collar or white-collar red-collar criminal is capable of hiding his or her thor was able to reveal through interviews with IV. Criminal history of victim “core” from others by relying on psychopathic the victims that they experienced psychological, A. White-collar crimes traits such as charm and manipulation as an in­ emotional, physical, behavioral, and financial B. Violent crimes terpersonal strategy. harm. V. Victim’s source of income (tax A case (not included in the Perri-RCM as in­ The results of the study revealed that the returns, bank statements, etc.) formation is still being collected on the case) de­ harmful impact of fraud is similar in its force VI.Fraud detection by victim serving of disclosure as a bona-fide fraud-detec­ to the experience of victims of physical violence A.Was the victim in a tion homicide case representative of the pure evil and property offenses. Some had, in fact, been position to detect fraud? of the defendant’s “core” is the Fredric Tokars the targets of other property and assault crimes B. Notice to defendant of case. unrelated to the fraud, and they stated that the the detection by victim In this case, a prominent defense attorney in impact the fraud had on their lives in terms of C.Did the victim cooperate Atlanta, Georgia, hired one of his clients to kill victimization was worse than the impact of as­ and/or give notice to a third his wife Sara because she had discovered docu­ sault and property crimes (Spalek, 1999). party concerning defendant’s ments concerning Fredric’s tax fraud and drug Too often the “non-violent” quality of white- fraud? money laundering. Fredric told one of his as­ collar crime is what incorrectly distinguishes be­ VII. Third party detection of the sociates, “[Sara] knows too much . . . I’m going tween types of criminals; that somehow white- defendant’s fraudulent behavior to have to have her taken care of” (McDonald, collar criminals are inherently different from without victim’s assistance 1998). other criminals. Yet, such may not be the case. VIII.Fraudulent behavior of the victim One of the prosecutors in the case stated that A study by Walters and Geyer (2004) found A.Would the victim have had Sara could have destroyed Fredric with the fraud that male white-collar criminals with a criminal a reason to commit fraud? she had detected. “Sara," he said, “was a ticking background exhibited the same level of deviant 1. Support lifestyle time bomb” (McDonald, 1998). Consequently, criminal thinking as other criminals. 2. Debt problems one of the hired killers shot Sara with a shotgun 3. Addiction issues blast to her head while she was in the family The Devil’s Trident B. How would the victim car—their two young sons were in the backseat. Trying to categorize the seriousness of the crim­ commit the fraud? Fredric’s response to an associate who asked how inal’s harms into violent versus non-violent is IX. Type of fraud involved his children would react to their mother’s death incomplete, overly simplistic, and ignores the X. Potential fraud co-conspirators was, “They’ll be alright . . . they’re young, they’ll true social harms that non-violent white-collar (examine computer evidence get over it.” Dr. Katherine Ramsland noted in criminals perpetrate on society. Examining the such as email) the Larry King interview, “we don’t know this level of aggression as a continuum of social harm XI. Did the victim have reason for sure yet, but it may be the case . . .[that some offers a more well-rounded approach in observ­ to fear retaliation by the who commit evil] are born to be that [psycho­ ing the extent and depth of a person’s sense of defendant for fraud detection paths]” (CNN, 2005). malice, whether based on a violent crime or or disclosures to witnesses? The non-violent psychopathic white-col­ fraudulent crime. XII. History of business conflicts lar criminal also has a core that is destructive, Interestingly, the legal concept of malicious between victim, customers, but one could, perhaps, characterize it as bitter, injury as defined by Black’s Law Dictionary or business associates rather than evil. According to Martens (2003), (1990) takes into account the evil aspect of one’s XIII. Third party business records fraudsters sublimate their aggression into con­ intent not only as it applies to violent acts, but indicating fraudulent behavior ning activities to avoid physical violence that also as it applies to fraudulent behavior. The (fraudulent loan applications, etc.) might cause a negative consequence, such as essentially different forms of harm by which the

Winter 2007 THE FORENSIC EXAMINER 25 psychopath can manifest his or her aggression may Albert Walker: Investor Turned Murderer be visualized in terms of a devil’s trident. There is a prong on the trident used to harm someone By Kristin Crowe, Associate Editor emotionally, another prong that can be used to harm someone financially, and another prong his is a story of deception, denial, false identity, and mur- that can be used to harm someone physically. der— the stuff novels are made of. In fact, a book, movie, Some individuals use all the trident’s prongs to T and play have all been created from this story. However, impale a victim. Some choose to impale a victim this trail of deception is more than a "good" story. It is the real using only the emotional and financial prongs; account of a Canadian man whose tale is finally coming to a such is reflective, for example, of a non-violent close after 17 years. fraudster. The predatory quality of some white- In 1990, Albert Walker left Paris, Ontario, with his daughter collar criminals resembles an exploitive nature and flew to Britain after embezzling between $2.5 and $3.2 mil- analogous to a violent predatory criminal, yet lion from his investment clients, many of whom were friends and manifested in a different form. fellow church members. After fleeingto Britain, he was charged in Canada with 18 counts of fraud, theft, and money laundering in 1993. However, in Ideation as an Influencing Factor 1992 he had taken the identity of Ronald Platt, an Englishman who wanted to go back It has yet to be determined in what ways ideation to Canada, where he had spent his youth. Walker paid for Platt ’s move to Canada can be a factor in the acceleration of violence as in exchange for Platt’s birth certificate and driving license. It seemed for a while that a solution for red-collar criminals. Two of the Walker had disappeared with the money and would get away with his fraudulent ac - cases in the Perri-RCM appear to represent red- tivity. However, Walker had not counted on Platt coming back to England. Dissatisfied collar criminals who harbored an idealization of with the Canadian economy, Platt returned to Britain in 1995, presenting Walker with extremely antisocial characters. In the Hansen a problem. Now, there were two Ronald Platts in Britain, and the real Platt decided case, the defendant appeared to romanticize the to live near where Walker was living with his daughter, who was posing as his wife. idea of the mob. He associated with members of In an effort to escape detection, police allege that Walker took Platt sailing, knocked the Chicago Mafia and enjoyed their company him unconscious, and threw his body overboard after weighting it with an anchor, ef - (“People v. Hansen,” 2004). Scott Dyleski en­ fectively murdering Platt to cover his fraudulent activity. Platt ’s body was discovered joyed lifestyles associated with goth music, had when caught in some fishing nets, and police were able to identify the body through a fascination with serial killers, idolized Jack the a serial number on the Rolex watch Platt was wearing. Ripper (Lee, 2006), drew “bloody death scenes” In the month between the time that Platt’ s body was identified and Walker was found, (Sweetingham, 2006c), and wrote dark poetry Walker had bought over 67,000 pounds in gold bullion and seemed to be preparing that included such troubled lines as “Live for the to run again. British police interrupted his plans, however. He was sentenced to life kill” (“Court TV News,” 2006). in prison by a British court in 1998 for the murder of Ronald Platt, although he main - The behavioral data for the cases in the Perri- tained his innocence of the murder throughout the trial. That same year the Canadian RCM does not include movies, books, music, court charged Walker with 37 counts of fraud, which was to replace the 18 counts clothing, posters, or other symbolic items that he had been charged with in 1993. After his conviction of murder, he was sent to a might link the murderers to those whom they British facility in 1999. He requested transfer to a Canadian prison in 2005 to finish may have imitated as a form of hero worship, the remainder of his life sentence (without parole for at least 15 years), which was but such material may be of interest in future granted. Now 61 years old, he appeared in court again in April of 2007, pleading cases of fraud detection homicide. guilty to 20 theft and fraud -related charges. In July of 2007, Justice Rommel Masse Ideation as idealization of mafia or Jack the sentenced Walker to 4 years for 19 fraud -related crimes and an additional year for Ripper legends may have further defined, solidi­ violating the Bankruptcy Act. fied, and strengthened these killers’ core person­ Fear of being caught in his fraud led Walker to flee to Britain, and fear of his fraud ality structures, where these types of symbols rep­ being uncovered led him to murder Platt. Fraudulent- investor- turned- murderer, Walker’ s resent a form of empowerment. In Scott Dyleski’s misdeeds were discovered, and $1 million of the at least $2.5 million has been recov - mind, if Jack the Ripper had been a successful ered. It has, however, taken 17 years and about half a million dollars to do so. killer, then he too could emulate that success.

References: Societal Misconceptions of Murder Babbage, M. (2007). Convicted killer Albert Walker pleads guilty to 20 theft, fraud- related charges. thespec. The question surfaced in the scrutiny of the com. Retrieved October 3, 2007, from http://www.thespec.com/article/188093 Dyleski case as to how his anger at the possibil­ Babbage, M. (2007). Former fugitive Albert Walker expected in Ontario court on fraud, theft charges. ity of not receiving the goods he had fraudulent­ thespec.com. Retrieved October 3, 2007, from http://www.thespec.com/article/187485 ly ordered could escalate to the degree that he Biography Channel, The. (n.d.). Biography: Albert Walker. Retrieved October 3, 2007, from http://www. would commit murder (Sweetingham, 2006b), thebiographychannel.co.uk/biogphy_story/978:1144/1/Albert_Walker.htm and herein lays the misconception. For Scott Canadian Press, The. (2007, July 24). Albert Walker gets four more years. thespec.com. Retrieved October Dyleski, the issue was not about anger, but about 3, 2007, from http://www.thespec.com/article/223211 using murder as a solution to a problem. CBC News. (2007, April 26). ‘Fugitive financier’ turned killer pleads guilty to fraud, theft. CBC. Retrieved The fact that he performed the murder in October 2, 2007, from http://www.cbc.ca/canada/ottawa/story/2007/04/26/walker-fraud.html n a sadistic manner does not correlate the act to the amount of anger he felt. One observes how

26 THE FORENSIC EXAMINER Winter 2007 societal perception incorrectly projects a non- her business partner had committed fraud and psychopathic explanation onto the murder by was trying to kill her. Witnesses who were in­ attempting to inure an emotion to the killer to terviewed after her murder stated that Clibbery suggest that, somehow, the defendant’s anger was had told them she suspected George Hansen the impetus for the killing. The data suggest that was taking money from the business and that the killers had no doubt that the solution to their she had begun to fear for her safety (“People v. perceived problem of fraud detection would be Hansen,” 2004). successful, and like a reptile, emotions did not play a part in their decision-making process. Eric Hanson In this case, the defendant, Eric Hanson was Fraud Detection Homicide charged with the murder of his mother, father, Case Studies sister, and brother-in-law. According to the pros­ The following case studies, which can be found ecution, the defendant is responsible for the theft in the Perri-RCM, provide detailed informa­ of tens of thousands of dollars from his parents tion concerning specific red-collar crimes that through forgery and identity-theft schemes. were commited. After his sister discovered his fraud schemes, he threatened to kill her if she disclosed what Sante and Ken Kimes she knew to their parents. The prosecution be­ After having detected that both Sante and Ken lieves that the defendant killed as a means to Kimes had committed mortgage fraud by at­ avoid discovery for his fraudulent schemes. The s Sante Kime's and Kenneth Kime's mugshots tempting to obtain a loan in his name, the vic­ parents had been shot in the head, and the pros­ tim, David Kazdin, began to receive threatening ecution claims that he carried the bodies to his telephone calls from the killers demanding that sister’s home where he killed both his sister and he cooperate with the fraud scheme. After speak­ brother-in-law (Rozek, 2007). Both victims Klebnikov (Case 25) and ing to Kazdin on several occasions, Sante told Bolles (Adams and Dunlap, Cases 13 her son, “He knows too much and we got to do Comparison between the Russian and 14) had been reporters investigat­ something about him” (Sweetingham, 2004a). Homicides and the American Homicides ing fraud; however, Bolles’ death result­ “We’re gonna have to kill him” (Sweetingham, In contrast to the American murders (Cases ed in a conviction of murder for the de­ 2004b). As Kenny was heading out the door she 1–22), the Russian murders (Cases 23–27) fendants. It is quite improbable that the said, “Good luck. Do a good job” (Sweetingham, were largely committed on a contract basis, also reporter in Case 25, Paul Klebnikov, will 2004b). known as “murder-for-hire.” The contract kill­ receive justice, since no suspect, or sus­ Ken Kimes said in a statement to authorities ings are not to be confused with the criminal pects, have been held responsible for the that he shot the victim in the back of the head enterprise homicide sub-classification. It is the July, 2004, murder. because he and his mother believed that their motive behind the contract killings that is the Today, the former Soviet Republic re­ fraud scheme to obtain $280,000 was about to important differential. sembles a disorganized collection of or­ be exposed and that the victim had, in fact, no­ The motive for the Russian murders is no dif­ ganized crime fiefdoms, where it is highly tified the lenders (Sweetingham, 2004b). ferent than the American murders: all had fraud unlikely that a contract killing would be detection as the motive to kill. The difference properly investigated. Oleg Panfilov, di­ George Hansen lies in the fact that in the majority of American rector of the Moscow-based Center for During the Christmas holiday season of 2004, murders, the red-collar criminal was, him- or Journalism in Extreme Situations stated, 69-year-old Mary Anne Clibbery was blud­ herself, willing to commit the murder, while “When a journalist is threatened, he is geoned to death in the head with a hammer by in the Russian murders, the red-collar criminal threatened either in court or with death— her business partner George Hansen. According hired someone to do the killing. either we will kill you or we will throw to both the court record and police reports, The Russian murderers had the markings of you in prison” (“Now, with Politovskaya’s prior to the murder, Hansen had misappro­ skilled professionals who were capable of avoid­ blood in the water,” 2006). priated more than $50,000 from the business ing detection by developing and executing a that year. murder plan with surgical precision. It is not a Throughout 2004, as Clibbery’s detection of coincidence that such murders go unsolved. As financial irregularities increased, a series of in­ stated by Russian prosecutors in the Klebnikov cidents began to surface; apparent attempts at murder (Case 25), the killing was “carefully drug-laced food, arson, and tampering with car planned” (Yasmann, 2004). To date, there is brakes lent support to Mary Anne Clibbery’s not even sufficient circumstantial evidence to suspicion that George Hansen was trying to bring a suspect to trial. In contrast, all of the kill her. One of the toxicology reports had de­ American defendants in the study were found termined a pink substance found in her coffee guilty of murder. to be a sleep aid known as Zolpidem, a generic Furthermore, the foreign murderers go beyond form of Ambien. silencing the victim that may have revealed their After the coffee incident, Clibbery revealed to fraud. The murders were committed in such a her doctor and a police officer that she believed way as to send a message to other potential vic­

Winter 2007 THE FORENSIC EXAMINER 27 The Role of Forensic Investigators in Uncovering Motive Forensic accountants or fraud investigators should be considered part of all homicide investigation teams where the evidence infers that fraud detection may have been the motive for the murder. Given that occupational fraud alone, according to a recent report, has exceeded $650 billion dollars (BackCheck, 2007), it is reasonable to infer that fraud-related murders are not an anomaly. Although other types of physical evidence may assist in developing possible suspects, these examiners may be in a unique position to uncover a motive that the physical evidence is unable to reveal. Many of the cases revealed little in terms of motive until the Perri-RCM revealed evidence exposing an underlying fraud scheme that pre­ dated the murder. Furthermore, by uncovering fraudulent behavior that pre-dated the mur­ der, forensic examiners may be able to nar­ row the potential fieldof suspects. Given the tims who were in a position to detect and re­ The data reveal certain behavioral traits that behavioral and accounting data presented in veal fraud. The Perri-RCM notes that some explain why red-collar criminals believe their the Perri-RCM, the information presented in of the Russian murders occurred in public, a white-collar crime skill-set can be duplicated the Fraud Detection Homicide Investigation distinction not evident in the American mur­ as violent criminals, behavioral traits that are Profile (Appendix C) may prove beneficial ders. The American murders appear to be re­ a result of their psychopathic natures. Most to forensic accountants during an investiga­ stricted to silencing the intended victim with­ significantly, their illusions of grandeur hin­ tion. out sending a message to anyone else (Perri & der their ability to foresee the consequences of The link to fraud detection has been crucial Lichtenwald, in press, b). their behavior. The inability of the red-collar in establishing a motive for murder where the In the Kozlov murder (Case 27), the vic­ criminal to think through a plan that would prosecution has had weak direct evidence, but tim was gunned down in public where he and take into account the potential risks of being supportive circumstantial evidence of guilt. other co-workers were playing soccer in a sta­ caught and the evidence trail left behind is The case facts reveal that the victims were in a dium. As the Deputy Chairman of the Russian another hallmark of their behavior. unique position to detect fraud, which explains Central Bank, Andrei Kozlov played a leading The judge presiding over one of the Sante why they were the homicide targets. It would role in efforts to stamp out white-collar crime Kimes cases stated, “Sante Kimes had grossly behoove forensic accountants to examine what in Russian banks. In 2002, he was quoted as overestimated her own cleverness. The stupid­ areas of the victim’s occupation or personal life saying, “I am being observed very closely and ity of a criminal keeping a to-do list added one would have placed them in a position to detect very seriously right now” (Chazan, 2006). The more extraordinary note to this bizarre case” fraud. Perri-RCM notes that three out of five Russian (King, 2002). Forensic accountants must attempt to put murders were perpetrated against government In further contrast to the American murders, themselves in the victim’s shoes and ask them­ officials. the foreign killers left key forensic evidence be­ selves what the victim knew that could have The Perri-RCM further reveals the in­ hind to make it clear that the death was not an been considered threatening to someone; for eptitude of the American red-collar killers. accident or some innocuous random act. In example, “Did the victim do anything with The American murderers lacked skills in the Hovasapian murder (Case 26), the victim, his or her knowledge of the defendant’s fraud planning a murder that could not be con­ the Head of the State Taxation Service, was in activity that increased the probability that he nected to them (Perri & Lichtenwald, in his vehicle when it exploded. The investiga­ or she would be a target of violence?” For ex­ press, b). For example, in both the Dyleski tors found an explosive device planted under ample, in the Hansen, Porco, Bernal, Barajas, and Petrick cases, the prosecution uncov­ the passenger seat where the victim was seated Johnson, Kimes, and Hanson cases, the victims ered written murder plans. Dyleski had (“Russia: High profile killings,” n.d.). In Case had gone, or threatened to go, to the authori­ written: “Knock-out/kidnap; Keep captive 24, the victim, Kholodov, was a journalist spe­ ties and expose the fraud upon detection of the to confirm PINs; Dirty Work; Dispose of cializing in exposing white-collar crime in the defendant’s behavior. evidence; Cut up and bury” (“Court TV Russian Defense Ministry. After receiving cer­ In the George Hansen case, the victim- News,” 2006). And in the Petrick case, the tain information, he had gone to the Moscow bookkeeper was in a unique position to ob­ prosecution recovered a murder plan from train station to pick up a suitcase. Upon return­ serve financial irregularities. A forensic ac­ the defendant’s computer searches (Lewis, ing to his office, the suitcase exploded (“Russia: countant would have discovered not only the 2005b, c). High profile killings,” n.d.). fraud from the defendant’s bank statements

28 THE FORENSIC EXAMINER Winter 2007 and the company records, but also a correlation commit such unspeakable violence. He went on between the defendant’s fraud and attempts to to say, “By caving in to public pressure to hold About the Authors silence the bookkeeper as her suspicions of fraud the most convenient suspect responsible, the po­ increased. lice deprived all of us the justice we are entitled In the Christopher Porco case, the family to” (“Transcript,” 2006). His ploy was clearly Frank S. Perri, JD, MBA, CPA, lead members would have been in a unique posi­ to craft the perception that if he had been de­ author of this tion to detect fraud because their personal fi­ nied justice, then all the people with whom he article, has nancial positions were being used by the killer “blended in” would suffer the same fate, should worked as a to advance his schemes. In the Bernal (Case 6 they be charged with a crime. The red-collar trial attorney & 7) and Barajas (Case 8 & 9) cases, the busi­ criminal’s resort to chameleon strategy is not for over 12 ness owners were in a unique position to detect unexpected (Perri & Lichtenwald, in press, a). years. Areas of the fraud of their agent. The prosecution must be cognizant of the fact concentration However, in the process of discovering a po­ that the defendant is attempting to bond with include white - tential suspect, it may be necessary for the fo­ the jury by putting forward the message that “be­ collar crimes rensic investigator to consider whether the vic­ cause I look like you, behave like you, and have and homicide. Perri received his Juris tim was involved in the underlying fraud. For no background in violence as you (the jury), I am Doctor from the University of Illinois. example, in the Kimes and Johnson murders, the not capable of such brutality.” Though motive is He received his master 's degree in victims had been co-conspirators in the killers’ not necessary to prove a murder case, without business administration from Case fraud schemes. motive, the jury may have only a sterile circum­ Western Reserve University and his stantial evidence case, which is one of the most bachelor' s degree in economics from Establishing Motive in the Prosecution difficult types of cases to prosecute, even when the Union College. In addition, Perri is a of Fraud Detection Homicide circumstantial evidence is strong. Establishing a licensed Certified Public Accountant. Many of the homicide cases in the Perri-RCM motive for the murder neutralizes the defendant’s He frequently lectures on both white- indicate that the red-collar criminals harbored bonding strategy with the jury. A motive demon­ collar and red -collar crime issues. an inflated belief in their own competencies, strates the decision-making process that propelled Contact Perri via email at fperri@ and in fact, the majority of them left a trail of the defendant to commit the heinous act. co.winnebago.il.us or frankperri@ evidence that clearly identified them as the kill­ hotmail.com er. However, the link to each fraud detection Conclusion was crucial in establishing a motive for murder Exhaustive review of cases where white-collar Terrance G. when the prosecution had weak direct evidence, criminals were arrested and convicted for murder Lichtenwald, but supportive circumstantial evidence of guilt. reveals that in each of the murder cases, fraud PhD, is a Establishing fraud detection as a motive is es­ either preceded or occurred at the same time as Life Fellow pecially important when the psychopath will at­ the murder. The data gathered from the mur­ of ACFEI, a tempt to use his or her lack of violent criminal­ der cases did not support the position that the Diplomate of ity as an advantage when the case against him killer had merely experienced a ‘lapse’ in moral the American or her may be entirely circumstantial. judgment. Board of For example, the defense attempted to use Scott Although fraud detection may not be an ap­ F o r e n s i c Dyleski’s (Case 2) non-violent, even gentle, back­ parent motive for a homicide, law enforcement Medicine, a Diplomate of the ground to suggest that he was not capable of such and prosecutors would benefit from consider­ American Board of Forensic brutality (Sweetingham, 2006a, c; “Court TV ing the detection of an underlying white-collar Examiners, and a Diplomate of News,” 2006). Defendant Christopher Porco ad­ crime as a possible motive to commit homicide. the American Board Psychological vanced the same philosophy: “A matter of dispute It is suggested that homicide detectives consider Specialties. He earned his Doctorate between my father and me was taken completely either consulting with or including forensic ac­ in Clinical Psychology from an out of context and then multiplied by the police countants and certifiedfraud examiners as part American Psychological Association and the prosecution because they needed to in­ of their investigation teams. (APA) approved program and com - vent a reason as to why a person who has never Further, the FBI Crime Classification Manual pleted an APA approved internship. been violent in his entire life would randomly should offer an appropriate system for catego­ He has a master’s degree in clinical decide one day to partake in an unspeakable de­ rizing these murders for profiling reasons. For psychology and a second master ’s struction of life” (“Transcript,” 2006). Some of descriptive purposes, the 27 murder cases have in school psychology. He earned the jurors in the Porco murder were hesitant to been given the general classification of fraud- his bachelor’s degree in broad field find the defendant guilty given that he had no detection homicides and the perpetrators who social studies and psychology. Dr. documented history of violence (Lyons, 2006). meet the criteria of having committed a fraud- Lichtenwald has spent 18 years com - Porco’s statement is demonstrative of how detection homicide have been classified as ed-r pleting forensic, behavioral, psycho- he tried to use his non-violent background as a collar criminals. Other forensic examiners are logical, and security evaluations, as strategy to convince others that he was not ca­ welcomed to submit further findingsand addi­ well as threat assessments. His re - pable of such acts. Porco attempted to “blend tions to the Perri-RCM. This matrix should be search interests are smuggling, white- in” by creating the perception that he was like viewed as a work in progress. most normal people who have no violence in their backgrounds and who lack the ability to

Winter 2007 THE FORENSIC EXAMINER 29 References Addis, J. (1986). Techniques for interviewing white-col­ lar criminals. The Union for Experimenting Colleges and Universities. BackCheck. (2007). Fraud staticstics. Retrieved September 10, 2007, from http://www.backcheck.net/fraudstats.htm Belmore, M. F., & Quinsey, V. L. (1994). Correlates of psychopathy in a noninstitutional sample. Journal of Interpersonal Violence, 9(3), 339–349. Bureau of Justice Statistics. (1981). Dictionary of Crim­ inal Justice Data Terminology. Washinton DC: U.S. De­ partment of Justice Statistics. Chazan, G. (2006, September 15). In Moscow, killing hurts bank reform. Wall Street Journal. CNN. (2005, May 4). Inside the mind of a psycho­ path. Transcript of Larry King Live. CNN.com. Retrieved from http://transcripts.cnn.com/TRANSCRIPTS 0505/ 04/lkl.01.html Court TV News. (2006, August 1). Testimony to be­ gin in trial of ‘Goth’ teen accused of killing prominent lawyer’s wife. CNN. Retrieved September 6, 2007, from from http://www.timesunion.com/ASPStories/storyPrint. Sweetingham, L. (2006b, September 28). Neglected http://www.courttv.com/news/horowitz/072606_scott_ asp?StoryID=420939 boy grows up to take pleasure in killing. Court TV News. dyleski_ctv.html?page=2. McDonald, R. (1998). Secrets never lie. New York: Avon Retrieved September 7, 2007, from http://www.cnn.com/ Cullen, F. T., Clark, G. A., Mathers, R. A., & Cullen, Books. law center/ webarchive/ ctv.html. J. B. (1983). Public support for punishing white-collar Martens, W. H. J. (2003). Constructive functions of Sweetingham, L. (2006c, August 1). Jurors view hor­ crime: Blaming the victim revisited? Journal of Criminal aggression in psychopaths. Priory Metical Journals. Re­ rendous crime-scene photos of the murder of prominent Justice, 11, 481–493. trieved from http://www.priory.com/psych/socio.htm attorney’s wife. Court TV News. Retrieved September Douglas, J. E., Burgess, A. W., Burgess, A. 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New Haven, CT: Yale University Press. Lewis, J. (2005c, November 14). Prosecution: Comput­ scandal upon the Maxwell pensioners. International Re­ Yasmann, V. (2004, July 13). Analysis: American journal­ ers map out Petrick’s plan to kill wife. WRAL.com. Retrieved view of Victimology, 6, 213–230. ist Klebnikov gunned down in Moscow. Radio Free Europe. from http://www.wral.com/news/local/story/121815 Stotland, E. (1977). White collar criminals. Journal of Retrieved from http://www.rferl.org/featuresarticle/2004/07/ Lyons, B. (2006, August 17). Timeline, vet’s words Social Issues, 33(4), 179–196. aa80f4b4-d6ff-4852-965e-ac93e39b1c16.html n proved damning to Porco. TimesUnion.com. Retrieved Sweetingham, L. (2006a, August 23). Prosecutor: from http://www.timesunion.com/AspStories/storyprint. ‘Insidious greed’ spurred Scott Dyleski to bludgeon his Earn CE Credit asp?StoryID=509058 neighbor to death. Court TV News. Retrieved Septem­ To earn CE credit, complete the exam for this article on page 76 or complete the exam on- Lyons, B. (2005, November 18). Peter Porco slain and ber 6, 2007, from http://www.courttv.com/news/horow­ line at www.acfei.com (select “Online CE”). wife Joan critically injured. TimesUnion.com. Retrieved itz/082206_ctv.html.

30 THE FORENSIC EXAMINER Winter 2007