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by vlovich123 284 days ago
If in most cases damages cannot be recovered or the criminal will never be caught in the first place, then what is the lesson being taught? Doesn't that just create a moral hazard where you "randomly" choose who to penalize?
1 comments

It's about sending a message.
The message being you’ll likely get away with it?
They're setting up a pretty simple EV calc:

(Probability of not getting away with it) 0.01 * (Cost if caught) 1000 = 10x (Expected Cost) = not worth it

The EV calculation completely goes away if you add a layer of limited liability corporation.