Maybe I am just not as Politically Correct Understanding As Others

Today it came out that someone in a niche business I participate in on occasion,meaning I buy a product or two,(not internet,but physical products) was charged and signed an admission of guilt to swindling one of his customers out of 500K over the past few years,
Of course there are several threads on FB about it, I haven't even bothered to check any forums,but I am sure there is a buzz there too.

But anyway. My thought when I heard it was first disbelief and shock,then disgust.

Then I saw some people poest a email he sent out that said....I hear some rumours are going around about me,let me assure you that my store is still open and I amm in business despite these rumours (I'm paraphrasing,I don't remember the exact text.)

Then a few hours later someone posted a copy of a signed document that came from the state attorneys office where the guy had admitted guilt and plea bargained down.

Of course now I realized he had lied in the first email,that he knew exactly what the "rumours" were about.

So as in all these forums and chat places, people are tyalking about it.
The shocker to me is how many are saying, crap like he made a mistake but he is still a good guy, or well,he may have done it but he never stole from me.

WTF is wrong with people.
He bilks a customer of his out of $500K!!

I would be screaming for the police to lock him up immediately. That is not like he made a "mistake". A mistake is when I owe you 75 cents in change but give you 7 cents. Thats usually a mistake,but defrauding a customer over the years to a tune of 500k, nope, no mistake.
What is your take. Is it a m"mistake" that everyone should ignore, or should they lock him up and throw away the key?