Society values investment strategies and medical innovations. If society finds out it has been defrauded, then society tries to reclaim its investments and punish the fraudsters.
Society sounds very cranky
Not disagreeing with what you wrote, but the word "fraud" itself implies a distinction between perceived and actual value.
To be fair, if societal values are determined by capital allocation then the values are almost entirely determined by the top 10%.
Society did at some point, but I think society would pay more for a loaf of bread than a Madoff share today