The OP is suggesting that CEO's face harsher penalties when criminal activity, significant enough to be investigated and prosecuted, is discovered. If 'everyth

The OP is suggesting that CEO's face harsher penalties when criminal activity, significant enough to be investigated and prosecuted, is discovered. If 'everything is securities fraud', and those frauds are not worthy of an investigation currently, then those companies would not be impacted by the suggestion. But they would have an incentive to be more diligent, as a precautionary measure.