But they did apply the law. Part of the settlement was an admission of guilt (along with massive fines and turning snitch on at least one business associate).

But they did apply the law. Part of the settlement was an admission of guilt (along with massive fines and turning snitch on at least one business associate). It sounds like everybody wins. IRS gets revenue in the form of fines that exceeded the avoided taxes. AG's office gets a snitch, which should enable them to fry bigger fish. The criminal pays a large fine, gets his name in the paper for bad reasons, but avoids jail. Really, what does jail get us in this case? It's a non-violent crime.