Yes you are right, this is the exception. Although, thinking about it from the point of view of someone being Convicted of a crime that never happened is fair

Yes you are right, this is the exception. Although, thinking about it from the point of view of someone being Convicted of a crime that never happened is fair enough, But when someone is not convicted of a crime that never happened we are not 'letting a guilty person go free' so both options in the ultimatum are broken with this.