GMATNinja or anyone else feel free to correct my analysis:
(A) Parallelism Error:
Form: X BUT Y
Subject: People
X Element: "under criminal investigation" is a prepositional phrase
Y Element: "have not yet been charged" phrase that starts with a verb, but does not contain a subject
(B) Parallelism error (similar to A)
The addition of who corrects the missing Subject the Y element, but we need a form of be (is/was/are/am/be) with "under" as "under" starts a prepositional phrase
We can also eliminate (C) for the same reasons.
(D) who are under criminal investigation, but they
"who are under" - relative pronoun "who" is connected to form of be. Why is this correct? well it can connect with the non-underlined verb in the Y element of the parallelism marker
And, we can clearly see that the antecedent of "who" is "people".
But, "they" forms an independent clause. This is incorrect.
Rule: A relative clause (a clause beginning with a relative pronoun such as that, who, whom, which, whose) is never parallel to an independent clause
Eliminate D
(E) the relative clause "who" has a clear antecedent.
The relative pronoun "who" clearly introduces two parallel verbal phrases that are coordinated by the one-word marker, "but"
"they" is removed, eliminating the previous independent clause error in D