It's not about the importance of the act of filing paperwork, it's the fraud of lying to customers that you are following the law and then taking their money. For what it's worth, I don't think prison would help. But maybe some non-dischargable liabilities and a ban from being a corporate officer would.

If you were actually to commit fraud regulators can come for you whether you register or not. The act of registration is simply to make it easier to tell regulators what is happening.