There are no good or bad people, that’s not how being a biological organism works.
Everyone has a spectrum of different risk/reward tolerances and the perceived risks and rewards of an action determine individual behavior.
Ratcheting up the risks by imposing punishments lowers the amount of individuals who determine the action to be beneficial to them. Other factors can have more influence though - raising shoplifting penalties does little to influence the behavior of a starving population, for example.
Grifters trying to stymie competing grifts is the ideal use of our throughly corrupt court system. Just the perfect venue for that. It’s like an inception of lies and money.