Did you not realize that almost all crimes that have ever been committed, very much including by smart accomplished people with a lot to lose, violated and belied this theory of rational behavior?
One thing I've been realising over the last few years is that that prison population is almost completely unrelated to actual crime rates.
My standard example is heroin, which is in the most severe rating category of illegal drug. In the UK, the number of users of just that drug on its own is close to triple the entire prison population.