This leads to the failure mode wherein all those predisposed to commit crimes of a certain nature aim to become undercover police officers tasked with combating

This leads to the failure mode wherein all those predisposed to commit crimes of a certain nature aim to become undercover police officers tasked with combating those crimes. Then they can commit their favorite crime with impunity, at the expense of those too dumb to become cops first. No one can be above the law. No one. If an undercover officer commits crimes to avoid breaking cover, the police department is culpable, and must pay some penalty. Since a corporate entity can't be jailed, I'm not certain what form of punishment would encourage it to minimize those lesser crimes committed in pursuit of the "big fish", but it is very clear that impunity is dangerous, destructive, and corrupting.