Unfortunately, I suspect any funds recovered via such penalties would fail to even begin to approach the total economic damage done to the community.
Ah, but in that case there would also be a strong case to be made for setting aside the contract (it having been obtained through fraudulent actions; an illegal "contract" is never a real contract) or at least the lock-in terms of it. You mustn't just penalize one half of the crooked agreement; you've got to deal with the other side if they were part of the conspiracy too. And no, the fact that a contract has been signed off by all the people who were authorized to do so at the time doesn't make it sacrosanct and beyond review, and it cannot do as that would provide a mechanism to allow fraud on a massive scale without any legal recourse, which would be exceptionally abhorrent to the public morals.
Hmm... In fact, "conspiracy" is a very suitable word to be considering here, given the reported statements, as it would allow some pretty extreme penalties to be levied against all concerned (e.g., a corporate conviction for conspiracy would be catastrophic for the company concerned, and would run the real risk of making them go bust. Like you ought to care.) In fact, check who the state DA has been taking payments from, just in case. It pays to be careful with this sort of thing...
I would emphasize that I definitely don't know the facts of the case or any of the individuals concerned. I'm merely commenting on how I would expect such things to be possible to go forward, treating the whole thing as hypothetical, given the (not necessarily unbiased) statement of the situation in the posts I'm replying to.