Yes, these people were wronged. To discourage that, giving them a “bail out” won't stop those that take this route. By making those personally responsible for the wrong they did, WILL discourage them from railroading others. How else will people be forced to be accountable if we shove the bill to Innocent tax payers? Where's the incentive to stop this?
I was in charge of a $57 million dollar budget. Most years I would come in under budget and get everything done. One year I made a $100,000 mistake. Actually one of my subbordinates did and I missed it in review. The department covered in in the overall budget. Should I have been made to pay $100,000 as a personal fine? And who do you think would have applied to be my successor? Take that amount to a higher level and see who would do the work.
In general, if a cop or witness or DA provides false info or hides evidence, they should do the sentence for that particular crime.