I'm probably going to get roasted for saying this, but this is completely unsurprising to me. When I was in college, folks from India and other low trust societies would mercilessly cheat on their projects and exams, blatantly helping one another on individual works, and the college knew about it and didn't care. When I had brought this up at one point, I was told by a professor that it was a cultural difference that…
Disagree from my experience.
When I was a TA in grad school, I had a PhD student who clearly had access to the instructor's solution manual. His answers were copied verbatim. If the solution's manual had an error, so did his answer. If the professor assigned a problem not from the book, he wouldn't answer it. I debated reporting him to the professor, but didn't want the drama and figured what your professor did: He'll do poorly on the exams (I was right), and poorly in the work place.
He got his PhD, got a fairly senior position, and quickly rose to be the director of a well known company's research division.
He probably was smart - he did get the PhD from a top ranked university. But I strongly suspect he gamed the system at his company just as he gamed the system there.
In grad school, I had a close friend. Clearly a very bright, skilled guy. Was kicked out of the PhD program when it was discovered he had been fabricating data (Nature was right about to publish his paper when he got discovered).
He went off to another top ranked university and got his PhD in the same area. I don't know how/why he had the balls to do it, as surely his former advisor would be in close proximity (conferences, etc) - and at least within my university his advisor was quite open about my friend's malfeasance.
He then got a research position at the top company in his field. Got promotions, and then quit and founded a startup that is doing well, and is known to some in this crowd here. If all goes to plan, he'll have his exit and be quite rich.
Now I don't know if he cheated in his second PhD or on the job, and I'm still in touch with him. But ... no - cheaters often continue to do well after graduating.