I am not just talking about tweaking resumes here and there. I am talking about faking a complete resume with 5-10 years of experience, those are fraudulent resumes and under the US labor law act ...... punishable jail time and fine for up to $$$ and Time.... It's still a black and white case in my eyes. Tweaking resume to make it more appealing with real time experience vs fraudulent 5-10 years experience is a whole different thing.

I agree that it might be hard to prosecute and/or provide evidence of fraudulent resume and the level of fraudulent information given by the employee on the resume. However; there are labor laws (State and Federal) that classify resume fraud as being illegal.

Statutory law
At least 11 states (Illinois, Indiana, Kentucky, Maine, Michigan, Nevada, New Jersey, North
Dakota, Oregon, Texas, and Washington) have currently enacted laws that make
misrepresentation of employment qualifications a criminal offense. Five states—Kentucky, New
Jersey, North Dakota, Oregon, and Washington—have classified this practice as a felony
punishable by several years in prison. The remaining states consider résumé fraud to be a
misdemeanor.
-As of 2008, not sure what the current standing is on this.

source: http://businesscommunication.org/wp-content/uploads/2011/04/13ABC2008.pdf