When he commits fraud, certainly. That's the whole basis of our government - enforcement of contracts. If the guy is scamming the workers comp system, as the article indicated, he should be held accountable.
No fraud has been found in Mr. Doty's case. You can be sure that the state would play that up to the hilt if there was. There are only allegations of underreporting because the state insists a man's children are "employees" if he occasionally teaches them his trade. There was no contract for work with his children. These "employees" were not reported, and thus penalties and assessments were incurred.