That's a weird take, meaningful fines are rare, except for parking/speeding tickets (because it's an easy way for cities to get cash), prison is very rare, you have to really go for the large crimes to not get probation. The one exception is coercive detention ("Beugehaft"), which they hand out instead of fines. It's a dumb concept, but it's also not that common.
I also generally disagree that Germany is capitalist. Most markets are heavily regulated and full of subsidies, taxes are extremely high, and there's a fundamental mistrust of individualism.