AFAIK limited liability is more about financial liability, not criminal. People are still responsible for actual crimes they commit, we just may need to classify more things as crimes.
I think discouraging investment is the opposite of what leads to a prosperous society. We'll just have a bunch of rich landlord sitting on piles of cash, afraid to give it to anyone because the risk of any jail time at all is probably too high for most.
And that doesn't even account for non-institutional investors. Can you imagine putting people in jail because of the meme stock they bought on Robin Hood?
