>The function of a jail is not to take revenge, it is to keep harmful people out of society
There have been countless words written on the subject, but one of the functions IS deterrence.
Look at it this way: you can try to launch a startup and guide it to a successful exit. If it succeeds, you get some nice cash in the bank. If you fail, you spent a few years and have no material gain to show for it.
Or, you can try to get away with a large-scale fraud. If it succeeds, you get some nice cash in the bank. If you fail, you spend 6 months doing community service and have no material gain to show for it.
Yes, it's obviously oversimplifying (ethics, experience/learning from a failed startup, what do you enjoy doing, etc.) But there has to be a significant cost of failure to prevent people from deciding it's worth a try.
You're missing a few things. The punishment of 10 years in jail didn't deter him. Why? Because he was desperate and viewed this as his only way out of a desperate situation. I'm sure there are many people that attempt the same things that he did for same/similar reasons. This punishment isn't going to deter someone that thinks: (1) They have the 'system' beat (2) This is their only option.
There have been countless words written on the subject, but one of the functions IS deterrence.
Look at it this way: you can try to launch a startup and guide it to a successful exit. If it succeeds, you get some nice cash in the bank. If you fail, you spent a few years and have no material gain to show for it.
Or, you can try to get away with a large-scale fraud. If it succeeds, you get some nice cash in the bank. If you fail, you spend 6 months doing community service and have no material gain to show for it.
Yes, it's obviously oversimplifying (ethics, experience/learning from a failed startup, what do you enjoy doing, etc.) But there has to be a significant cost of failure to prevent people from deciding it's worth a try.