In many instances of fraud, such as the Bernie Madoff case, willful blindness occurs when victims of fraud enable a cover up by choosing not to question possible wrongdoing.
Neal H. Levin, Partner and Team Leader of the Fraud and Internal Investigations Group, describes this psychological syndrome in “Fraud Cover-Ups: How to Tell When Something Doesn’t Smell Right…,” published in the February 2013 issue of the White-Collar Crime Fighter newsletter.