There won't be a game over if you're arrested. It'll be random in the sense that you'll either get a warning or an event wil happen that branches into a route I'm planning. Still figuring out the details on it though.
Cool. Just getting a game over is kinda lame. If I may make a suggestion, I'd like it if the arrest scene features the model being handcuffed from behind (actually, there should be more models showing the characters from behind in general, but that's just my opinion). You don't need to take my suggestions as anything more. It's your game at the end of the day.