Since evil spirits plunge into all kinds of evils when they are in this second state, it is normal for them to be punished often and severely. There are many kinds of punishments in the world of spirits, and there is no respect for rank, for whether someone was a king or a servant in the world. Every evil brings its own punishment with it. They are united; so whoever is involved in something evil is involved in the punishment of the evil as well. Still, no one suffers any punishment for evil things done in the world, only for current evil deeds. It boils down to the same thing, though, and makes no difference whether you say that we suffer punishments because of our evil deeds in the world or that we suffer punishments because of our evil deeds in the other life, because after death we all return to our life, which means that we are involved in the same kinds of evil. This is because our nature is determined by the kind of physical life we led (Sections 470–484).
The reason they are punished is that fear of punishment is the only means of taming their evils in that state. Encouragement does not work any more, or teaching or fear of the law or fear for their reputation, because they are acting from their nature, which cannot be compelled or broken by anything but punishments.
Good spirits are never punished, though, even though they have done bad things in the world. This is because their evils do not come back. I have also been granted a knowledge that their evils are of a different kind or nature. They do not stem from any deliberate resistance to what is true, and they are not from any evil heart except the one they acquired by heredity from their parents, which blind pleasure drove them into when they were involved in outward concerns separated from inner ones.
from Heaven and Hell, Section 509