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> (size of fine * chance of being caught) > profit from not being caught But that's precisely the problem, isn't it? How can you ensure the risk is too high fo

• dpark 10y ago
  Because the question isn't whether the fine will bankrupt the company but whether the expected value of the illegal transaction is negative. Illegal transactions that lose you money are a generally bad idea regardless of whether your net worth is ten dollars or ten billion.
• habosa 10y ago
  That's the profit part. It could be the following: * $x of fines for every $y of wire fraud * $x of fines for every individual instance of wire fraud The point is if a company that makes a billion dollars does $100k in fraud they should probably pay the same fine as a company that makes a million dollars and does $100k in fraud.