This week in fraud.

A couple of stories came to my attention over the weekend, and I thought they’d make an interesting diversion from the endless parade of obits.

1) Back in 1973, David Rosenhan (a social psychologist at Stanford) published what became one of the most famous papers in psychology. Summarizing:

Rosenhan himself and seven mentally healthy associates, called “pseudopatients”, attempted to gain admission to psychiatric hospitals by calling for an appointment and feigning auditory hallucinations…
All were admitted, to 12 psychiatric hospitals across the United States, including rundown and underfunded public hospitals in rural areas, urban university-run hospitals with excellent reputations, and one expensive private hospital. Though presented with identical symptoms, seven were diagnosed with schizophrenia at public hospitals, and one with manic-depressive psychosis, a more optimistic diagnosis with better clinical outcomes, at the private hospital. Their stays ranged from 7 to 52 days, and the average was 19 days. All were discharged with a diagnosis of schizophrenia “in remission”, which Rosenhan considered as evidence that mental illness is perceived as an irreversible condition creating a lifelong stigma rather than a curable illness.

(I would link to his paper, “On Being Sane In Insane Places” here, but I can’t find a trustworthy non-paywalled version. If someone else can, please leave a link in the comments and I’ll update.)

This caused a great deal of consternation in the profession, and led to the creation of the DSM and other changes.

Susannah Cahalan (the author of Brain on Fire: My Month of Madness, a book I haven’t read yet but plan to) got interested in Rosenham’s paper and the story behind it:

‘On Being Sane in Insane Places’ was the only significant scholarship he ever produced, and he lived off this famous paper throughout his career. It occurred to her that it would be fascinating to track down as many of the pseudo-patients as she could, and to explore the circumstances under which Rosenhan had come to undertake his study.

The Great Pretender: The Undercover Mission That Changed Our Understanding of Madness is her new book (it came out in November) about Rosenham and his experiment. I haven’t read it, so I can’t really spoil it, but the title probably gives away a lot:

With two and a half exceptions, even as skilful an investigative reporter as Cahalan was unable to locate the pseudo-patients. Rosenhan himself was easily identified as the first of them. His files included his admission as ‘David Lurie’ to Haverford State Hospital in Pennsylvania. (He was then teaching at Swarthmore College.) And internal clues in the files enabled her to track down Bill Underwood, who had been a Stanford graduate student at the time. Another pseudo-patient, Harry Lando, surfaced — once also a graduate student and now an academic — but he only half counts, for, as a usually overlooked footnote in Rosenhan’s paper recounts, one pseudo-patient had been dropped from the study, and this was he. As for the rest: nothing, nada, no trace.

In a larger sense, it scarcely matters, because Cahalan uncovered so much other evidence of Rosenhan’s malfeasance and lies. He claimed, for example, to have carefully coached his volunteers before sending them forth. Bill Underwood and Harry Lando emphatically denied this. Lando appears to have been dismissed from the study, not because he violated protocol, but because, as Rosenhan incredulously noted about his confinement, ‘HE LIKES IT!’ And then some of the things Lando reported about his experiences reappeared in the published paper attributed to a different pseudo-patient.
Most damning of all, though, are Rosenhan’s own medical records. When he was admitted to the hospital, it was not because he simply claimed to be hearing voices but was otherwise ‘normal’. On the contrary, he told his psychiatrist his auditory hallucinations included the interception of radio signals and listening in to other people’s thoughts. He had tried to keep these out by putting copper over his ears, and sought admission to the hospital because it was ‘better insulated there’. For months, he reported he had been unable to work or sleep, financial difficulties had mounted and he had contemplated suicide. His speech was retarded, he grimaced and twitched, and told several staff that the world would be better off without him. No wonder he was admitted.

In summary (this is the reviewer talking, not me):

…the evidence she provides makes an overwhelming case: Rosenhan pulled off one of the greatest scientific frauds of the past 75 years, and it was a fraud whose real-world consequences still resonate today.

2) Randy Constant was a farmer. He bought and sold orgainc grain, and raised fish commerically. In 2017, he was named to the list of “10 Sucessful Farmers to Watch” published by “Successful Farming”.

And about the same time he was named to that list, the FBI raided his home and businesses.

Records showed that in 2016 he sold 7 percent of all the corn labeled organic and 8 percent of all the soybeans carrying that designation. More than $19 million worth that year, $24 million the year before and so on every year before that back to 2010 at least.
It was impossible for him to have done that legitimately. He didn’t have access to enough organic crop acres to supply so many bushels.

With the FBI’s assistance, the USDA would go on to prove that Constant was a swindler on a grand scale: More than $140 million in fraudulent sales between 2010 and 2017 for grain that was likely worth half that.
The Star’s subsequent reporting found that, in fact, his scheme stretched back further than that, to 2007 or 2006.
Constant scammed grain buyers, meat producers and millions of American consumers for a decade or more. The organic beef and poultry countless Americans were eating during those years wasn’t organic after all.

And what did he do with the money?

Not only did he bankroll extravagant family vacations every summer — counting kids and grandkids, he’d treat a dozen to stays at luxury resorts like Hilton Head, South Carolina — Constant also admitted to using the grain sales money to pay for sex with prostitutes and wagering at casinos.
He took more than 20 trips to Las Vegas, often alone, during the seven-year period covered in his indictment. There he spent hundreds of thousands of dollars in illegal profits on gambling on the Vegas strip, hiring female escorts and providing financial support to three women with whom he had extramarital affairs.
He shared a bank account with one of them, and spent $110,000 on her car payments and other bills, a trip to Spain and surgery to enhance her breasts.
“During a roughly seven-month period in the course of the scheme,” Constant admitted in court records, “another account in my name and under my control incurred more than $250,000 in Las Vegas-related expenses.”

(As Lawrence said when I read him that quote, “The rest of it he just wasted.”)

The Kansas City Star piece is long, but I think it’s worth reading. It covers not just Constant and what may have motivated him, but also the flaws in the government’s system of certifying organic crops.

Constant pled guilty to one count of wire fraud and was sentenced to 10 years in prison. He committed suicide before his sentence began.

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