There are ways of diong this without court action. Such as *gasp* banning.
Banning is only a temporary solution. Coming back is as simple as finding a new identity or using a convenient alt (and alternate credit card) from work.
So, I disagree. Especially when real investment is at stake.
It's not a matter of jailing everyone; it's about setting a precident that it could happen to curb wide-scale abuse and hopefully save LL money and time in the long run.