Fraud and the American Dream: Toward an Understanding of Fraud Victimization

ABSTRACT

American culture and the practices of government focus an overwhelming majority of attention on violent “street” crime. As a result, very little is known about the victims of fraud. In order to contribute to this literature, a case study is provided that examines the victim population of a Ponzi scheme. Data are provided on the general characteristics of the victims, their investments, and the growth of the scheme. A theoretical model is formulated from Messner and Rosenfeld.'s work in Crime and the American Dream. This paper expands the concepts of this theory by providing evidence that it can be used to explain victim behavior.

Notes

¹Russell Turbeville is the Chief of the Consumer Fraud Division of the Harris County District Attorney.'s Office and has over 25 years experience investigating Ponzi schemes and prosecuting offenders.

²All 434 victims responded to the survey administered by the Harris County District Attorney.'s Office.

³The victim profile is comprised of demographic dimensions that were available in the data. No information, for example, was available on the victims.” race or education.

⁴GDP is a measure of the total market value of all final goods and services produced in our country and, according to the U.S. Census Bureau (2004), is the most important measure of economic performance.