I believe that you are partially correct.
When the IRS removes the charitable/non profit status of 501c3 charities, the result can be fines and possible seizure of assets of the 501c3.
As of now the assets of the people involved are protected. So they just walk away from the wreckage, get more startup funding from George $oreA$$ and start a new 501c3.
A conservative lawyer in the DC area said the only way to stop this was to make the officers and board members of the 501c3 responsible for criminal acts. Over 6 years ago, he was for asset seizure of the execs and board members when they involved the 501c3's in illegal activities. Living in the DC area, he said that liberal criminals (his words) created 501c3's for illegal political activities on a regular basis. As soon as the need was over, they would end the 501c3 or change its name and mission. He felt that these 501c3's enabled the liberals to laundry money and create boiler rooms to defeat republican candidates. With what happened in 2004 and up to now, his warnings came true.