White Collar Crime: Suicide, Murder And Revenge - Forbes

Aaron Schwartz took his own life in his Brooklyn apartment. Now, each year, I pause when my reminder flashes on my phone to think about this guy, who I never knew, but understood what he was going through.

At the time of his death, Schwartz was facing a federal indictment in the District of Massachusetts for hacking into a database of free academic papers at Massachusetts Institute of Technology (MIT).  While nothing was "stolen," his computer antics may have caused delays for others seeking to access the research.  The act itself caught the attention of US District Attorney Carmen Ortiz (then US Attorney) who after pressing the case approved a deal to offer Schwartz a 6-month prison term.  Schwartz turned it down, choosing instead his own remedy for the pain that he felt.  Ortiz would say of the incident, "I just wish we had the opportunity to save him."

"Wishing" is not going to bring back Aaron Schwartz or others who make such tragic decisions.  However, research into these cases is bringing awareness to the problem and led to a new phrase, "Red Collar Crime."  One of my good friends, Professor Rich Brody, the Douglas Minge Brown Professor of Accounting at the University of New Mexico's Anderson School of Management, introduced me to his research and his interest in the subject.

"I came across a paper by attorney Frank Perri and thought, 'Wow, this is different.'"  Brody, a Certified Fraud Examiner who teaches fraud examination and forensic accounting, speaks on the topic of Red Collar Crime around the country.

Brody pointed to a case in Tampa, FL where an executive from Anchor-Glass who under suspicion for involvement in securities fraud, killed his wife and two teenage children before setting his home ablaze then shooting himself.  It was a tragedy that nobody saw coming.  In cases like this, Brody said, "In murder-suicides like this one, there are risk factors that include personality traits such as the need to control situations and/or persons. Murder is the ultimate form of control over others, and being able to control one’s destiny, albeit resulting in death, appears preferable."

Research like this is used to train law enforcement and is slowly making its way to lawyer Continuing Legal Education.  In cases of attorneys, they are usually working with complete strangers as a white collar case begins.  What is routine for the lawyer, another interesting criminal case, is a tragedy for the person sitting in front of them.  Family pressures, alcohol and drug abuse, sense of failure and lack of understanding the process in front of them can be overwhelming.  "Lawyers are not counselors, but there are things that they should be aware of when that client walks in the door.  The propensity for violence or suicide is one of them.  Just because someone is accused of a white collar crime does not mean that he or she is not capable of committing a violent act against someone else or themselves," Brody said.

In a paper by Brody and Perri, "Fraud Detection Suicide: The Dark Side of White-Collar Crime," they evaluate cases from Enron to the death of a college dean at St. John's University, providing clues to why these tragic events occur.

There are important lessons for those in law enforcement.  "We want to inform law enforcement that there is a dark side to some white collar criminals and that consideration of other motives, like the impact of the disclosure of a white-collar crime, could be enough for someone to take a life," Brody said.  Brody and Perri have taken the well-known Fraud Triangle and applied it to cases involving violence. They have renamed it as the “Fraud Concealment Homicide Triangle.”

On January 11, 2013 I set a yearly reminder in my iCalendar to mark when Aaron Schwartz took his own life in his Brooklyn apartment. Now, each year, I pause when my reminder flashes on my phone to think about this guy, who I never knew, but understood what he was going through.

At the time of his death, Schwartz was facing a federal indictment in the District of Massachusetts for hacking into a database of free academic papers at Massachusetts Institute of Technology (MIT). While nothing was "stolen," his computer antics may have caused delays for others seeking to access the research. The act itself caught the attention of US District Attorney Carmen Ortiz (then US Attorney) who after pressing the case approved a deal to offer Schwartz a 6-month prison term. Schwartz turned it down, choosing instead his own remedy for the pain that he felt. Ortiz would say of the incident, "I just wish we had the opportunity to save him."

"Wishing" is not going to bring back Aaron Schwartz or others who make such tragic decisions. However, research into these cases is bringing awareness to the problem and led to a new phrase, "Red Collar Crime." One of my good friends, Professor Rich Brody, the Douglas Minge Brown Professor of Accounting at the University of New Mexico's Anderson School of Management, introduced me to his research and his interest in the subject.

"I came across a paper by attorney Frank Perri and thought, 'Wow, this is different.'" Brody, a Certified Fraud Examiner who teaches fraud examination and forensic accounting, speaks on the topic of Red Collar Crime around the country.

Brody pointed to a case in Tampa, FL where an executive from Anchor-Glass who under suspicion for involvement in securities fraud, killed his wife and two teenage children before setting his home ablaze then shooting himself. It was a tragedy that nobody saw coming. In cases like this, Brody said, "In murder-suicides like this one, there are risk factors that include personality traits such as the need to control situations and/or persons. Murder is the ultimate form of control over others, and being able to control one’s destiny, albeit resulting in death, appears preferable."

Research like this is used to train law enforcement and is slowly making its way to lawyer Continuing Legal Education. In cases of attorneys, they are usually working with complete strangers as a white collar case begins. What is routine for the lawyer, another interesting criminal case, is a tragedy for the person sitting in front of them. Family pressures, alcohol and drug abuse, sense of failure and lack of understanding the process in front of them can be overwhelming. "Lawyers are not counselors, but there are things that they should be aware of when that client walks in the door. The propensity for violence or suicide is one of them. Just because someone is accused of a white collar crime does not mean that he or she is not capable of committing a violent act against someone else or themselves," Brody said.

There are important lessons for those in law enforcement. "We want to inform law enforcement that there is a dark side to some white collar criminals and that consideration of other motives, like the impact of the disclosure of a white-collar crime, could be enough for someone to take a life," Brody said. Brody and Perri have taken the well-known Fraud Triangle and applied it to cases involving violence. They have renamed it as the “Fraud Concealment Homicide Triangle.”

Let's block ads! (Why?)