Well, not anymore, since I finished for the day.
Got quite a bit of the Crime and Punishment done. The basic way it works is that, for every illegal action you perform (public indecency/nudity, theft, assault, solicitation, etc), you get guilt points. The number of points you get depends on the severity of the crime. Once your guilt gets to 50+ points (on a scale of 0-100), there's an increasing chance that the police will show up at your apartment between early afternoon and night to arrest you.
Once you're arrested, you can pay the fine, or spend time in jail (warning, spending time in jail will be REALLY boring!). Either way, when you've done that, your guilt resets to zero and, depending on the severity of the crime you were arrested for, you get between 1 and 3 points added to your criminal record. The more points you have in your criminal record, the more severe the fines/sentences you have to face for your crimes.
At the end of every day, your guilt drops by 1 point, so if you go long enough without getting all up in the illegal activity, then you're off scot-free.
Eventually, I want to make it so that if you're arrested a lot, you get a trait for it (Criminal), which gives bonuses to slightly counter the penalties you get for spending time in jail (you'll still want to avoid spending time in jail, though), as well as additional options while in jail, instead of the wait/nap/exercise options that are planned for this release.