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I like the logic of that. Corporations were originally given limited liability in return for doing a public good.

If they are doing something illegal - the opposite of a public good - then they broke the deal, so those who broke the law don't get limited liability.

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On a previous thread someone posted a interesting idea. Every time a company conducts criminal actions, the feds assume X percentage of undilutable ownership. This punishes the company and stakeholders (or stockholders) as it dilutes their equity and if too much illegality occurs the company changes hands (and probably gets spun out as a new public company with the proceeds going back to the public and the original investors/etc still get an acceptable punishment).

We already have this. I was in prison federal prison with some of these guys. What you want is maybe less prosecutorial discretion but mandatory sentences/etc have been ruled unconstitutional in federal law so it would be a tricky prospect when it comes to removing individualized assessments. It's easy to grab a pitchfork after reading an article but their might be realities we don't see that prosecutors (who do this for a living and really really like having scalps to hang) did.

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