Here's Bill Black, author of The Best Way to Rob a Bank is to Own One, on crimogenic environments:
Control fraudsare seemingly legitimate entities controlled by persons that use them as a fraudweapon.... Financial control frauds'weapon of choiceis accounting. Neoclassical theory, which dominates law & economics, is criminogenic because it assumes that control fraud cannot exist while recommending legal policies that optimize an industry for control fraud. Its hostility to regulation, endorsement of opaque assets that lack readily verifiable market values, and support for executive compensation that creates perverse incentives to engage in accounting control fraud and optimizes fraudulent CEOs' ability to convert firm assets to the CEO's personal benefit have created a nearly perfect crime.... CFOs that optimize accounting profit maximize their CEO's compensation while honest CFOs report dramatically lower (but real) profits and their CEO's receive far less compensation. The accounting control fraud optimization strategy hyper-inflates and extends the life of financial bubbles, which causes extreme financial crises.