@maxdancona,
Your "punishment must fit crime" comparisions don't fly, Max. Not every loss a person suffers is a "punishment" nor is it necessarily the result of committing a crime.
This aint the best example, but it illustrates the basic point:
Suppose you have a house you want to sell me, and I come to see it. You show me around. I like it so I agree to pay you $250,000 if you can prove you own it, as it appears you do since you are living there. I go to the courthouse and see that a deed to the property is registered showing you as the owner. So you give me a deed, and I pay you $250,000.
A week later the true owners come back from vacation and tell me to get the hell out of their house. It turns out that you forged a deed from these people to you before I bought it.
Who should get the house? If it's them, I lose $250,000 and I didn't do anything wrong. If it's me, they lose their house for nothing.
Somebody loses, whichever way you go. Neither of us have committed a crime and the loss is not because we're being punished. It's all just because of the illegal acts of a 3rd person (you).
I did nothing wrong at all. Sure, I may have made an honest mistake when I relied on a criminal to acquire title, but personally I'm innocent. I should get to keep the house, right!?