[maratd]

> what if they refuse to work? Do they just get to walk away?

Nope. Then you can send them to prison. But at least give them a choice.

> people who commit things like large-scale fraud are usually psychopaths to some degree

Large scale fraud is rare. You want to send those people to prison, fine, but it'll be in the hundreds on an annual basis.

Small scale fraud is common. The motivation here is purely financial. They will want to keep out of jail and pay you money. It makes no sense to spend money to keep these people unproductive in prison. In fact, it's just outright crazy.