One of the reasons that some scams are so numerous is that the people committing them rarely get caught. If people know that there is no consequence for stealing people's money, there is just no incentive not to. Arresting criminals is important since in helps protect victims and show potential criminals that they can't get away with it.
Scam like this have been perpetrated for many years. How is this any different than a Ponzi scheme or penny stock boiler room scheme? I think that arrests like this put fraudsters on notice that someone is watching and noticing what they have been doing. Citizens should be able to trust that a person representing themselves as a debt collector is collecting on debts that are real.
Arresting is the first step. This might scare employees in other such industries away from this kind of business. The law when it cracks down is often a good deterrent, not only on targeted criminals, but non-targeted criminals as well. With all of the debt collection gone awry it is no wonder someone eventually got arrested.
Debt collection is a horrible business to carry on but it is profitable and because of that more companies will just fill the void. All they have to do is find employees which isn't difficult when everyone is begging for work regardless of what it is. Putting John Todd Williams and his employees at bay will not stop the lawlessness of debt collection.