I would expect businesses to split up. It's physically impossible to keep 100,000 people from ever committing crimes. (By comparison, that's a mid-sized city. How busy are the police forces in a mid-sized city on a typical day, and how many crimes go uncaught?) You'd likely see one CEO after another go to jail until there's nobody with an ego big enough to take the position, at which point the company splits up until it reaches manageable chunks.
...which may not be a bad thing. Lock up all the sociopaths and narcissists, and improve competition too!