Penalties of Fraud

Fraud perpetrators can be especially difficult to prosecute. As a result, many fraudsters lose their jobs, but face little or no other repercussions. The fraudsters then get a job at a new company that usually has no idea that their new employee has been involved in suspicious behavior. The individual defrauds this new employer, gets fired and the cycle continues. Eventually the fraudster gets caught doing something that produces enough evidence to prosecute the individual. Many times, fraud prosecutions dig up a history of fraudulent behavior at several previous employers. By keeping the penalties for fraudulent acts fairly low, we encourage future frauds.

Because of this, I get concerned when I read the following (via LAT):

Los Angeles County’s top prosecutor has warned that a budget proposal by Gov. Arnold Schwarzenegger would so weaken court sentencing guidelines that if a swindler such as Bernard Madoff were to be brought to justice in California he would not face state prison time.