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This is a core component of a corrupt system. Everyone needs dirt on everyone else to feel secure that they can screw you if you ever try to run against the grain.
Just look back at any of the police who get criminally charged. One of the charges against the cop will likely be "theft of state funds" or similar language. This means the cop stole overtime, which is so common as to be universal.
Another common example is tax-evasion under a dictatorship. Everyone in the ruling class does it, but run afoul of the regime, and off to jail you go.