Forensics Journal - Stevenson University 2010 | Page 24

STEVENSON UNIVERSITY

Moral Lapse Versus the Psychopathic Fraudster:
Implications for Our Justice System
Yvette Frusciante, CPA, CFF
Past research and theory indicate that most occupational fraud (asset
misappropriation) is committed by individuals who face certain
situational pressures or motivations that result in “one-hit wonder”
crimes. They are not always seen as criminals, and often receive what
is perceived as lenient treatment in the justice system. A different
offender, however, whose character is in complete contrast to that
which the public has come to know as the typical “white-collar” criminal, has emerged. This sub-classification is known as psychopathic
fraudsters. In some instances, the personality traits present in this
type of offender have led to violent crimes as they attempt to conceal
their fraudulent behavior. Unfortunately, those same personality traits
allow these individuals to conceal their true nature. The public and
the justice system often have difficulty distinguishing the psychopathic fraudster, and as a result, they are classed with, and receive the
same sanctions as, the typical occupational offender.

non-shareable to another. These range from true financial problems to
problems that are viewed as being solvable through financial means.
Cressey’s study revealed that these non-shareable financial needs
typically arise as a result of a desire by the potential offender either
to achieve a higher status, or simply to maintain the one they have
(Wells, p. 14).
According to the Association of Certified Fraud Examiners’ (ACFE)
2008 Report to the Nation on Occupational Fraud and Abuse, the
typical occupational offender is over the age of forty and a long-term
employee of the organization (greater than five years), holding a
position with an annual salary of less than $50,000. In greater than
80% of the cases surveyed, the offender had a clean employment and
criminal record with respect to fraud or abuse (pp. 48-61). It therefore stands to reason that the typical occupational offender is seen as
one who experiences a moral lapse in response to certain pressures
in life. As a result, the public perception is often one of pity and, on
some level, identification. These offenders are seen as more rational
than other criminals, almost innocuous. This “public sentiment” is
greatest when the offense is committed to feed a family, to care for a
sick loved one, or to pay a mortgage to prevent foreclosure. Although
recent high profile financial crimes have resulted in greater public
condemnation and outrage against white-collar criminals in general,
the 8