Please provide a list of the companies at which you have worked so I can be sure to avoid them. There are layers of management so the top layers can use the bottom layers as fall guys? Really?
I'm not going to give you a copy of my resume, but yes. I've seen examples of it (not to the point of where people get fired) but definitely cases where Management doesn't want to know the dirt on what is really happening. So between a couple layers of management, there is enough plausible deniability that the boss doesn't need to take the hit.
Take the Wells Fargo deal where they were creating the false accounts. People were doing it wide-spread, but the CEO didn't know.
Middle management's role is basically to be the buffer between what the CEO tells the investors and what is really happening at ground level.
Recruits come to town and get laid. Players know this. The coach can't say it, (at any university) but they set up the environment to ensure recruits are happy. The AD has to have a hunch that something could happen, but he doesn't want any proof of it. He wants a successful program but wants it "clean" of course. The President wants to act like he's too big of a figure to watch every detail. He assumes everything is in line. "that's what he has coaches and AD's for!"
Until something goes wrong. Then the President can act shocked that something horrible is happening. The AD can play the same game. The coach is caught in the middle of the players and the coach.
It's corporate America everywhere I've worked. It's not always about sex or even breaking laws, but it could be about sales figures. CEO is saying sales will be higher, but the forecast is showing half of last year. Three layers of management to tell the story from "Weak pipeline" to "We're getting some traction on some big accounts" to "Looks like we have a good future" to CEO saying "Things are incredible".