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Prison is expensive. It costs $120 a day to put someone in federal prison. So that's $840 a week, plus health care for him, plus the loss of whatever tax he pays and his employees pay.
If you fine him to the point where he goes under and everyone working for him loses thier jobs, they figure those people are not going to find a new one for a long time.
The cost of prosecution probably did not add up. He probably owned the business and made a living from it, but was cash poor - which is probably why he was poaching. I don't condone it, but locking people up and shutting people down has costs also. We're at the point where every person who becomes unemployed stays that way for a long time.
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