and abetting the fraud, looking the other way.”
He went on. “I think the insurance industry is totally corrupt. They’ve had no oversight forever, and they’re dealing with trillions in assets and liabilities.” He thought between 20 and 25 percent of public companies were cheating on their financial statements. “You want to talk of another fraud?” he said at one point, out of the blue. He had just published a memoir and was now in the habit of scrutinizing his royalty statements. He called them “Chinese batshit.” The crooks he investigates, he said, have financial statements “more believable than my publisher’s.”
He said the one fact he keeps in mind whenever he goes to the doctor’s office is that forty cents of every health-care dollar goes to either fraud or waste.
Whoever is treating me, I make sure I tell them that I’m a white-collar-criminal investigator, and I let them know that there’s a lot of fraud in medicine. I tell them that statistic. I do that so they don’t mess with me or my family.
There is no high threshold in Markopolos’s mind before doubts turn into disbelief. He has no threshold at all.
3.
In Russian folklore there is an archetype called yurodivy, or the “Holy Fool.” The Holy Fool is a social misfit—eccentric, off-putting, sometimes even crazy—who nonetheless has access to the truth. Nonetheless is actually the wrong word. The Holy Fool is a truth-teller because he is an outcast. Those who are not part of existing social hierarchies are free to blurt out inconvenient truths or question things the rest of us take for granted. In one Russian fable, a Holy Fool looks at a famous icon of the Virgin Mary and declares it the work of the devil. It’s an outrageous, heretical claim. But then someone throws a stone at the image and the facade cracks, revealing the face of Satan.
Every culture has its version of the Holy Fool. In Hans Christian Andersen’s famous children’s tale “The Emperor’s New Clothes,” the king walks down the street in what he has been told is a magical outfit. No one says a word except a small boy, who cries out, “Look at the king! He’s not wearing anything at all!” The little boy is a Holy Fool. The tailors who sold the king his clothes told him they would be invisible to anyone unfit for their job. The adults said nothing, for fear of being labeled incompetent. The little boy didn’t care. The closest we have to Holy Fools in modern life are whistleblowers. They are willing to sacrifice loyalty to their institution—and, in many cases, the support of their peers—in the service of exposing fraud and deceit.
What sets the Holy Fool apart is a different sense of the possibility of deception. In real life, Tim Levine reminds us, lies are rare. And those lies that are told are told by a very small subset of people. That’s why it doesn’t matter so much that we are terrible at detecting lies in real life. Under the circumstances, in fact, defaulting to truth makes logical sense. If the person behind the counter at the coffee shop says your total with tax is $6.74, you can do the math yourself to double-check their calculations, holding up the line and wasting thirty seconds of your time. Or you can simply assume the salesperson is telling you the truth, because on balance most people do tell the truth.
That’s what Scott Carmichael did. He was faced with two alternatives. Reg Brown said that Ana Montes was behaving suspiciously. Ana Montes, by contrast, had a perfectly innocent explanation for her actions. On one hand was the exceedingly rare possibility that one of the most respected figures at the DIA was a spy. On the other hand was the far more likely scenario that Brown was just being paranoid. Carmichael went with the odds: that’s what we do when we default to truth. Nat Simons went with the odds as well. Madoff could have been the mastermind of the greatest financial fraud in history, but what were the chances of that?
The Holy Fool is someone who doesn’t think this way. The statistics say that the liar and the con man are rare. But to the Holy Fool, they are everywhere.
We need Holy Fools in our society, from time to time. They perform a valuable role. That’s why we romanticize them. Harry Markopolos was the hero of the Madoff saga. Whistleblowers have movies made about them. But the second, crucial part