That is a pretty weak example since it even says in the article that the window dressing maneuver was probably within the GAAP principles and the regulatory bodies were aware of the practice.

It kind of goes to my point that it seem to be more of incentive and business failure than a criminal one. Being aggressive with your company and then failing isn't a crime.

I'm not sure criminal is the right word here. The suit was settled for $10M, and there are conflicting interpretations as to whether that accounting maneuver was actually illegal or not. Given that the case never went to trial, it still remains up in the air.