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There was also a period of time (70s-80s?) when PF was providing certs to certain dealers on the dealer's ID. Many of those certs are (surprise!) bad. Since that was discovered they've been very good at actually judging what was submitted instead of taking the word of 'reputable' dealers.
As far as I know, that is not true. What *IS* true is that indeed there was a scandal at the PF back in this period but it did not work as you stated it. As I recall (and we can dig this out to include in the thread if we want) there were a couple of dealers who were able to submit some material that may have had small faults and get "clean" certs on them because there was a PF employee in cahoots with those few dealers. Fortunately, there was a published list of the questionable cert's numbers which enable people to identify those certs.