It wasn't like that - there was roleplay that "we saw nothing" if you send one million first, perhaps you were a Freelancer passing by my report will say - the guy that complained just ignored any attempts on that kind of roleplay, or on RP after the trader I was protecting died and started shooting. I got away from him(no combat docking, just flying away mid fight) and offered to finish the fight if he sends that same one million that was asked initially
Assisting is fine of course - we still need government agencies to make arrests, pay for transport and housing of criminals and can assist with that. But if we meet a hostile solo it will go the money acquisition way - either issue fines or ask for bribes etc.
There's various LPI Infocards and rumors - some mention LPI prefers to focus on making the people working without focusing on arrests.
But there is also a rumor that LPI will take you in under any dubious pretense because they need workers. But in practice unless some ultra commited unlawful plays along this is just hard to impossible to pull off in game without powergaming, and you just become standard Navy ID ship "disabling" vessels and "oops, escape pod got away"