I have a suggestion regarding the crime system.
Why not just get rid of the demerits system and replace it with judicial system?
A person caught will be held in custody until he has a proper court (if he desires it), and when the court happens, there will be prosecution, defense, witnessess and evidence.
Think of the average court as a game of Phoenix Wright.
Judge decides the final sentence, should the defendant be declared guilty and sentenced to something, or should he be declared not guilty and let him go?
Ofcourse, you'll have to write some sort of in-game lawbook so judge, police and lawyers can read up on it. It should document all the crimes and what's the sentence for said crimes. I can write such a thing for you if you want me to.