Fraud Examiners in White-Collar Crime Investigations

296 Pages·2015·3.86 MB·English

by  Petter Gottschalk

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In Fraud Examiners in White-Collar Crime Investigations, Petter Gottschalk examines and
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Pool Your Resources for a Successful Investigation

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Gottschalk emphasizes the importance of collaboration across multiple disciplines including
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accounting, law, and forensic science in solving each case of suspected white-collar crime.
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participating individuals or organizations. Since so many people participate in an -
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Fraud Examiners in White-Collar Crime Investigations approaches case studies from the

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perspectives of police science and detective work rather than auditing and legal thinking.
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Gottschalk asserts that “the private detective rather than the firm lawyer” is the more potentially i
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successful fraud examiner. His approach emphasizes the importance of using strategy and
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practice in yielding results toward solving a case and highlights the use of interviews. He

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looks at the role of people as significant resources of information to help solve white-collar n
criminal cases and explains how a well-conducted interview can have a significant impact on v
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the progress of an investigation. s
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Through the analyses theories Gottschalk presents, this book gives you a useful tool for g
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understanding characteristics of white-collar crime and for devising strategies for conducting t
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and evaluating investigations of suspected white-collar crimes. o
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Fraud Examiners in
White-Collar Crime
Investigations

Fraud Examiners in
White-Collar Crime
Investigations
Petter Gottschalk
BI Norwegian Business School
Oslo, Norway
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2015 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20150420
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Contents
About the Author ix
Introduction xi
1 White-Collar Criminals 1
Characteristics of White-Collar Criminals 1
Characteristics of White-Collar Crime 5
Sample of White-Collar Criminals 9
Characteristics of Sample Criminals 15
References 17
2 Empirical Study of Criminals 23
Occupational versus Corporate Crime 23
Criminal Leaders versus Criminal Followers 27
Rotten Apples versus Barrel Offenders 32
Detection of White-Collar Crime 35
Auditing Role in Crime Detection 41
Crime Signal Detection Theory 44
References 46
3 General Theory of Crime 49
Theorizing White-Collar Crime 49
Definitions of Theory 52
Economical Dimension of Crime 54
Organizational Dimension of Crime 55
Behavioral Dimension of Crime 57
Organizational Level of Criminals 59
Challenging a General Theory 61
References 65
4 Private Investigations 71
Financial Crime Specialists 72
Certified Fraud Examiners 74
Markopolos in the Madoff Case 76
Person-Oriented Investigation 80
Place-Oriented Investigations 81
v
vi Contents
Archive-Oriented Investigation 82
Technology-Oriented Investigation 82
Hypotheses Testing 85
Investigative Thinking Styles 86
The Case of Kelly Paxton 91
References 93
5 Investigation Characteristics 97
Extraordinary Examination 97
Need for Investigation 99
Examination Characteristics 100
Police Investigations 105
Investigation Science 108
Internal or External Investigation 110
Examiners, Officers, Journalists 111
References 121
6 Information Management 123
Criminal Intelligence 125
Strategy Characteristics 128
Classification of Information Sources 129
Forensic Accounting 136
Crime Intelligence Analysis 138
Whistle-Blowers as Informants 140
Arranging the Interview 142
References 142
7 Knowledge Management 145
Knowledge Management 146
Professional Service Firms 149
Intelligence for Knowledge 151
Knowledge Integration 153
Knowledge in Analytical Work 155
References 157
8 Configuration Management 161
Law Firm Business 162
Legal Knowledge 162
Knowledge Resources 164
Law Firm Clients 164
Value Shop Work 166
References 169
Contents vii
9 Systems Management 171
Stages of Growth Models 171
Stage Model for Systems 172
Seven C Knowledge Framework 178
Business Intelligence 181
References 185
10 Evaluation of Investigations 187
Process and Impact 187
Evaluation Defined 189
Evaluation Procedure 192
Contributors to Evaluation 196
Secrecy of Investigations 198
Disclosure to Law Enforcement 206
References 212
11 Stage Model for Investigations 215
Four Levels of Maturity 216
Starting Point Evaluation 219
Work Process Evaluation 222
Work Result Evaluation 224
Examination Impact Evaluation 225
Resource Value Evaluation 226
References 229
12 Sample Investigation Evaluations 233
Twenty-One Examination Reports 233
Investigation Performance 236
The Turkey Case 238
The Eckbo Case 239
The Langemyhr Case 240
Characteristics of Cases 241
Fraud Examination Reports 242
References 243
13 Investigation Perspectives 247
Blame Game Hypothesis 247
Twenty-Eight Examination Reports 250
Empirical Case Study 254
Qualitative Research Results 259
viii Contents
Corporate Social Responsibility 261
Case for Discussion 264
New Chance 265
Accepted Statoil’s Offer 265
Expects Several Answers 266
“Victory Strengthens the Suspicion” 266
Not Good Enough 267
An Explanation Is Needed 268
The Supervising Judge’s Version 269
Not to the Press 270
References 270
Conclusion 275
Reference 276