I think you're running into an issue that lives between the LEM database and Crystal Reports. The LEM database search itself is case insensitive, but Crystal Reports is doing some additional filtering according to your select expert filters that are turning around and making the searches case sensitive. We've seen this in a couple of other customer-reported cases as well. Since this is a "feature" of Crystal Reports, we haven't tracked down the override and resolution yet.
Unfortunately, we're not aware of a workaround in Reports to avoid this situation. To avoid the duplicate entries problem, you could try making them two slightly different variations of the same thing - "like *brichards* or *BRichards**" for example (or *BRichard*, etc).
Another alternative, depending on what you're going for, is to search using nDepth (Explore > nDepth). Searching for Username = *brichards* or Auth Audit Alerts.DestinationAccount = *brichards* should do it.
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Thanks for the response Nicole! Just getting around to working with some of this and your suggestions (double ** in the reports filtering) seem to be giving me some additional flexibility that is greatly appreciated.