“Too Large to Charge”

In a society where proportional justice doesn’t exist, the gap between the ultra-wealthy and everyday people continues to grow, the concept of justice becomes warped. Corporate malfeasance—deception, fraud, and outright theft—often goes unpunished, or at best, results in fines so minuscule compared to the wealth of the perpetrators that they’re effectively meaningless. This phenomenon has given rise to a troubling reality: some corporations and billionaires are “too large to charge.”

While poor individuals are harshly penalized for their crimes, the wealthiest entities face wrist slaps that fail to deter future wrongdoing. This imbalance fuels the ever-widening wealth gap and erodes public trust in the justice system.

No More Pocket-Change Penalties For Robber Barons: American Express

Consider the recent settlement by American Express (Amex) over deceptive sales practices targeting small businesses. Amex agreed to pay $230 million—a figure that might sound substantial but pales in comparison to the company’s financial standing. With a market capitalization exceeding $200 billion and annual revenues of $67 billion, the fine amounts to just 0.34% of their revenue.

For Amex, this is little more than a rounding error, a negligible penalty that does nothing to deter future misconduct. Meanwhile, small businesses harmed by the practices likely suffered far more significant losses relative to their financial positions. The justice system has failed here: instead of delivering consequences proportional to the harm caused, it allows corporations to treat fines as a minor cost of doing business.

Elon Musk and the SEC: Billionaire Immunity Has To End

The SEC’s lawsuit against Elon Musk provides another glaring example. Musk allegedly delayed disclosing his acquisition of Twitter shares, allowing him to buy more stock at artificially low prices and enrich himself by over $150 million. The SEC is pursuing damages, but for Musk, whose net worth is in the hundreds of billions, even a $150 million penalty would amount to less than 0.1% of his wealth.

If Musk, or any billionaire, can violate regulations and face consequences so minor they are barely noticed, what’s stopping them from doing it again? This case highlights how the legal system struggles to hold the ultra-wealthy accountable. The fines and penalties need to match the scale of the crime and the resources of the individual, or they will continue to be meaningless.

Corporate Crimes Aren’t Victimless

When corporations engage in fraud, deception, or malpractice, the effects ripple through society. In 2008, the collapse of Lehman Brothers and the subsequent financial crisis devastated millions of ordinary Americans. Families lost their homes, life savings were wiped out, and the unemployment rate skyrocketed.

Yet, none of the executives at the center of the crisis faced jail time. The fines imposed on financial institutions amounted to billions—but when viewed against their profits and market caps, they were trivial. These fines neither delivered justice nor deterred future misconduct, as evidenced by repeated violations by many of the same institutions in the years since.

Another example is Purdue Pharma’s role in the opioid crisis. The company aggressively marketed OxyContin while downplaying its addictive potential, leading to hundreds of thousands of deaths. Purdue and its owners, the Sackler family, eventually agreed to a $6 billion settlement. While this seems significant, the Sacklers shielded much of their fortune and avoided criminal charges. The financial penalty did little to address the devastation caused by their actions, leaving countless victims without true justice.

The Cost of Doing Business In A Broken Justice System

These cases share a common thread: for the wealthiest individuals and corporations, legal penalties are rarely a true deterrent. Instead, they are factored into the cost of doing business. A company may knowingly engage in illegal activities, calculating that even if caught, the profits will outweigh the penalties.

Meanwhile, everyday people face disproportionate punishments for their crimes. A person with a net worth of $1,000 who robs a bank would never face a proportional penalty of $3.40. They would face years in prison, restitution, and a lifetime of consequences. Yet, when banks defraud their customers or manipulate the stock market, the penalties are often laughably small.

What Needs to Change

If America is serious about addressing wealth inequality and restoring faith in its justice system, penalties for corporate malfeasance must be reimagined. A few key reforms could include:

1. Proportional Fines

Fines should be tied to a percentage of a company’s annual revenue, market capitalization, or net worth. This would ensure that penalties are substantial enough to deter future misconduct. For example, instead of fining Amex $230 million, the penalty could be 5% of their annual revenue—roughly $3.35 billion.

2. Executive Accountability

Executives responsible for illegal actions must face personal consequences. This could include substantial fines, bans on serving as corporate officers, or, in extreme cases, prison time. Holding individuals accountable would create a culture of responsibility at the top levels of corporations.

3. Operational Restrictions

Companies with repeated violations should face structural changes or limits on their ability to operate. For example, a bank caught defrauding customers multiple times could lose its ability to issue certain financial products.

4. Enhanced Oversight

Regulators should impose long-term monitoring and stricter controls on companies with histories of misconduct. This could include mandatory compliance programs and regular audits.

A Call for Creative Penalization

Justice must evolve to address the realities of modern capitalism. The current system, where corporations and billionaires are “too large to charge,” undermines the rule of law and fuels public disillusionment. By implementing proportional penalties and holding individuals accountable, we can ensure that justice is not only done but seen to be done.

Fines should never be a minor inconvenience for the rich. They should be a deterrent—a signal that no one is above the law, no matter how large their bank account or balance sheet. The wheels of justice must turn faster, harder, and smarter, or they risk being outpaced by the axle of corporate crime.