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From Hannibal Lecter to Bernie Madoff FBI Profilers Famous for Tracking Serial Killers Are Turning Their Attention to White Collar Felons

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From Hannibal Lecter to Bernie Madoff FBI Profilers Famous for Tracking Serial Killers Are Turning Their Attention to White Collar Felons SPECIAL REPORT REUTERS/PHOTO ILLustrATION FROM HANNIBAL LECTER TO BERNIE MADOFF FBI profilers famous for tracking serial killers are turning their attention to white collar felons BY MATTHEW GOLDsteIN branded as "monsters" in the tabloids. the Federal Bureau of Investigation's NEW YORK, APRIL 20 But a team of FBI agents, the same ones Behavioral Analysis Unit have been who specialize in helping local police track consulting with their colleagues in New York ernard Madoff - the architect of history's down serial killers like Ridgway, are using who specialize in securities fraud detective biggest Ponzi scheme - and Gary their expertise in behavioral profiling to work. The BAU agents are going over the Ridgway,B the Green River killer, would seem target white collar criminals like Madoff. case files put together by the FBI for Madoff to have little in common aside from being For about two years now, agents with and other convicted scammers like Bayou APRIL 2011 WHITE COLAR PROFILING APRIL 2011 Group's Samuel Israel, whose $400 million hedge fund turned out to be Ponzi scheme, and former Democratic fundraiser Hassan Nemazee, who stole nearly $300 million FBI readIng lIst from Citigroup and two other big banks. Some of the research papers that can be found on the bedside tables of the The hope is the BAU agents, whose work in agents working with the FBI’s Behavioral Analysis Unit. profiling serial killers has been popularized 1. “Why do they do it? The motives, mores and character of white in books, movies and on TV, can get into the collar criminals” minds' of fraudsters and see what makes — Bucy, Raspanti and Rooney (St. John’s Law Review) them tick. 2. “Criminal thinking and identity in male white collar offenders” In cinematic terms, substitute Gordon — Walters and Geyer (Criminal Justice and Behavior) Gekko, the insider trader in "Wall Street," for 3. “Economic crime: Does personality matter?” Hannibal Lecter, the cannibalistic serial killer — Alalehto (International Journal of Offender Therapy and Comparative Criminology) in The Silence of the Lambs, and you get an 4. “Corporate psychopathy: Talking the walk” idea of what the FBI is trying to do. — Babiak, Neumann and Hare (Behavioral Sciences & Law) "This originally started out as an attempt to find a way to prevent and detect Ponzi 5. “Can general strain theory explain white-collar crime” — Langton and Piquero (Journal of Criminal Justice) schemes," said Peter Grupe, the FBI's assistant special agent in New York in charge of white collar investigations. "But it developed into something broader." The FBI's profiling strategies are part of an aggressive new approach to financial crimes. Facing widespread criticism over the lack of criminal cases stemming from the financial crisis, the FBI and federal prosecutors are "pervasive and pernicious." that many white collar defendants have no keen on showing that they are not soft on Indeed, some of the FBI agents in New prior criminal records and outwardly often fit white collar offenses. York assigned to investigating securities the profile of a successful corporate executive To that end, the FBI for the first time has fraud openly describe some of their targets or Wall Street trader: greedy, hard-charging, an "embedded" agent working closely with as operating like "professional criminals" charismatic, ambitious, smart and Type-A the Securities and Exchange Commission's - the kind of language you might expect control freaks. main office in Washington, D.C. The agents to use when discussing the Yet the agents with the FBI's behavioral agent began working a year Mob or other organized crime group, some of whom also are active in ago with the SEC's new syndicates. developing profiles of terrorists and criminals market intelligence unit, Still, the ability of FBI who prey on children, believe they can develop vetting early tips the profilers to make a profiling strategies that will help undercover regulatory agency difference is less clear agents ferret out corrupt corporate titans, gets about potential to some experts. shady hedge fund traders and other Wall scams and frauds There's a good Street con artists. At a minimum, the from the public. deal of skepticism profilers want to determine if major white An FBI official says about whether the collar criminals share enough personality there's talk of doing techniques used to traits and behavioral patterns that agents in something similar target killers who interrogations and investigations could use with the SEC's all commit some of the the information they glean. important New York most heinous and violent If the FBI profilers can do that, it will enable regional office as well. crimes is at all applicable agents working undercover to better spot to analyzing the motivations the bad guys and determine which suspects PROFESSIONAL CROOKS of Wall Street felons. are the best ones to try to flip and turn into THE EXPANDED efforts to sniff out "As an academic exercise it may be snitches against their corrupt colleagues. white collar crime arise from a deep-seeded interesting to put Madoff, Michael Milken, "The goal here isn't so much to prevent a belief shared by many in law enforcement Allen Stanford and Jeff Skilling all in the financial crime from occurring but to make - that fraud is rife in some corners of Wall same room and let the shrinks analyze investigations more productive," says Mark Street and corporate America. Manhattan them," said Marc Mukasey, the head of Hilts, head of the FBI's BAU-2, the eight- U.S. Attorney Preet Baharara says his office, white collar defense practice at Bracewell & member group that is overseeing the white which is prosecuting the big insider trading Giuliani and a former federal prosecutor. "It collar offender project. "There is no one case against Galleon Group co-founder would be interesting to do, but I'm not sure template for what constitutes a serial killer Raj Rajaratnam, has found that trading by of the utility." and the same applies to the white collar hedge funds on confidential information is After all, Mukasey and others point out world. What we try to do is look at things 2 WHITE COLAR PROFILING APRIL 2011 WHITE PAPERS: Susan Kossler , FBI Supervisory Special Agent (SSA) of the Behavioral Analysis Unit (BAU) 2 - Crimes Against Adults, points to a report on white collar criminal behavior in her office in Quantico, VirginiaA pril 1, 2011. REUTERS/KEVIN LAMARQUE through the lens of the offender. " prosecutors, criminologists and investigators criminology at Florida State University, who Hilts said his team likely will interview Reuters interviewed for this story were wrote several academic papers that Hilts' significant white collar cons like Madoff skeptical that the profiling strategies can BAU team is reviewing, said her research on -- just as FBI profilers did in the past with work in the white collar arena. white collar offenders has found that many serial killers Ted Bundy and so-called Son "It sounds a bit like voodoo law are extremely controlling in the workplace, of Sam murder David enforcement to me," said Berkowitz. But any one-on- "THE GOAL HERE Jeffrey Bornstein, a former one interviews with Madoff longtime federal prosecutor and his white collar ilk are ISN'T SO MUCH and now an attorney in the probably months, maybe San Francisco law firm of even years, away. TO PREVENT K&L Gates. Despite what goes on in A FINANICAL Bornstein, who the movies, FBI profilers represents Richard Choo- don't like to interview CRIME FROM Beng Lee, a former hedge criminals until they've done OCCURRING fund manager who pleaded extensive "archival and guilty in 2009 to insider paper research" so they BUT TO MAKE trading and became a key can then sort out fact from INVESTIGATIONS cooperating witness in the fantasy, Hilts said. Nor can Galleon insider trading he rule out that Madoff, who MORE investigation, said few many have described as PRODUCTIVE.” white collar offenders set cold, calculating and largely out to be criminals. In most lacking in remorse, may be cases, they end up breaking something of an "outlier" in his peer group. the law because they keep stretching the limits of permissible activity. "VOODOO" COPS "You could give these people lie detector PONZI KING: Accused swindler Bernard Madoff enters the Manhattan federal court house CLearLY, HILTS AND HIS team have their tests and they might pass," said Bornstein. in New York, March 12, 2009. REUTERS/SHANNON work cut out for them. A dozen former Nicole Piquero, an associate professor of STAPLETON 3 WHITE COLAR PROFILING APRIL 2011 almost obsessively so. But she said the their craft. They say profiling is nothing more problem profilers may encounter is that than another tool, along with DNA analysis the characteristics that make a successful and questioning of witnesses. businessman, especially on Wall Street, are Indeed, the FBI's official involvement with often ones shared by white collar offenders. profiling dates back to 1972 with the formation Other lawyers and experts were simply of the Behavior Science Unit, which is part of skeptical of profiling in general. They say that the FBI Academy in Quantico, Virginia. In the movies like The Silence of the Lambs and the mid-1980s, the federal government decided CBS television show "Criminal Minds" have to expand the BSU model and that led to glamorized the work of FBI profilers, making the creation of the Behavioral Analysis Unit, them seem like real life versions of Sherlock with whom Hilts has worked with more than Holmes who always get their man. a decade. In a 2007 New Yorker magazine article, In hunting down serial killers, BAU agents writer Malcolm Gladwell tore into the help local police departments better analyze mythology that has surrounded profiling of the physical evidence left behind at murder serial killers.
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