Private Investigations of White‐Collar Crime Suspicions: A Qualitative Study of the Blame Game Hypothesis

The activity of private investigations by fraud examiners is a business of lawyers, auditors, and other professionals who investigate suspicions of financial crime by white‐collar criminals. This paper presents results from an empirical study of investigation reports. The available sample consists of 28 reports written mostly by auditing firms such as Deloitte, Ernst & Young, and PwC. The blame game can occur at two stages in a private investigation. First, the mandate formulated by a client may point investigators in a specific direction. Next, investigators sometimes suffer from a tunnel view of predetermined opinions. In the sample of 28 investigations reports, more than half of them involve potential blame game victims. Copyright © 2014 John Wiley & Sons, Ltd.     

Construct validity of the Life Orientation Test

The Life Orientation Test (LOT; Scheier & Carver, 1985) is a common measure of optimism. Previous studies of the convergent and discriminant (vis-à-vis neuroticism) validity of the LOT have relied solely on questionnaires. Our Study 1 was a multitrait, multimethod investigation of the LOT incorporating Gottschalk and Gleser's (1969) method of content analysis of speech samples as a nonquestionnaire assessment method. The LOT did not correlate significantly with the Gottschalk Hope Scale (Gottschalk, 1974) derived from speech samples. Study 2 was an initial attempt to determine the nature of the differences between these alternate measures of optimism. In particular, it was hypothesized and found that the LOT was more fakable than the Hope Scale. Participants who received special instructions to "fake good" scored significantly higher on the LOT than did control participants who received no special instructions. Faking instructions did not significantly affect scores on the Hope Scale.     

Convenience orientation and white-collar criminogenity: an empirical study

The theory of convenience suggests that white-collar crime is committed in situations where alternative legitimate actions to avoid problems are more painful and stressful. The extent to which individuals in privileged positions choose to break the law in difficult situations is dependent on their convenience orientation. For example, people with a strong convenience orientation can have a tendency to believe that bankruptcy might be avoided through tax evasion and bank fraud. However, the empirical study in this article provides limited support for the suggestion that convenience orientation has a direct influence on the propensity to crime in terms of criminogenity. Rather, there can be several statistically significant effects from convenience that are indirectly related to criminogenity. The most significant effect is that more conveniently oriented respondents believe that financial crime can solve problems and contribute to exploit possibilities.     

Heroic Leaders as White‐Collar Criminals: An Empirical Study

In an empirical study of 179 white‐collar criminals, we identify a subset of 28 who may be called having a ‘heroic’ status, having received official recognition for contributions to society and fame prior to their being exposed and convicted as white‐collar criminals. We argue that these people are close to the classical picture of the white‐collar criminal, which implies that they are more likely not to be suspected of crimes. They are older, richer, and more powerful than the regular criminals. They also commit crimes assuming the roles of leaders in the crime. Most importantly, it seems as if the combination of heroic status and executive positions induces people to commit large‐scale opportunistic crimes late in their lives. The apparent onset of criminal behaviour late in life may be triggered by latent narcissistic traits. Our study contributes to a differentiated view on the profile of white‐collar criminals and derailed leadership. Copyright © 2012 John Wiley & Sons, Ltd.     

Empirical Evidence of Convenience Theory: Reports of Investigations by Fraud Examiners

Convenience theory attempts to integrate various theoretical explanations for the occurrence of white-collar crime. Convenience theory suggests that organizational opportunity to commit and conceal financial crime is at the core of deviant behavior to avoid threats and exploit possibilities. This article presents an empirical test of convenience theory by content analysis of investigation reports by fraud examiners. Empirical evidence suggests that convenience orientation was indeed present among suspected offenders.     

Evaluation of Fraud Examinations: The Case of Inappropriate Accounting Practices at Fuji Xerox

ABSTRACT

There is a growing business for global auditing firms and local law firms as well as independent detectives to conduct forensic investigations at client organizations when there is suspicion of white-collar misconduct and crime. Client organizations normally do not disclose investigation reports. An investigation report concerned with inappropriate accounting practices at Fuji Xerox in New Zealand is publicly available. This article presents an evaluation of the investigation. Specifically, this article focuses on the mandate, where examiners were asked to find causes of misconduct. Examiners present eight reasons for inappropriate accounting practices. However, as discussed in this evaluation, the report of investigation presents little or no evidence for most of the causes.     

Changes in Behaviour and Body Weight Following a Single or Double Social Defeat in Rats

In a series of experiments, the consequences of a single and double social conflict on various behaviours and body weight in rats were studied. Animals were subjected to social defeat by placing them into the territory of an aggressive male conspecific for one hour, either once, or twice at the same time on two consecutive days. To assess the consequences of social defeat, three experiments were performed with independent groups of rats. In the first experiment, an open field test was performed two days after the last conflict. Locomotor activity was strongly reduced after social defeat. There were no differences between the single and double defeat group. To assess the effects of social defeat on subsequent social behaviour, a second experiment was performed in which experimental animals were confronted with an unfamiliar non-aggressive rat two days after a single or double conflict. Social defeat resulted in a reduction of social contact with the unfamiliar conspecific. There was no difference between the single and double conflict group. In the third experiment, the effects of social conflict on food intake, body weight and saccharine preference were measured. Food intake was not affected after a single conflict, but in the double conflict group food intake was decreased for several days. Body weight gain was decreased after both single and double social defeat. The decrease was stronger in the double conflict group. Water intake and saccharine preference were not significantly affected. This study revealed that social defeat in rats causes pronounced changes in various behaviours and body weight. Different aspects of behaviour are differentially affected by defeat with respect to the magnitude and time course of the changes induced. Moreover, different behavioural parameters are differentially sensitive to repetition of the stressor.