Corruption and Fraud
Corruption and fraud are, in this context, when an entity in power does things that are dishonest or contrary to commonly accepted ethics and laws. Profit is usually involved. If the action goes unnoticed there can often be a very large monetary benefit to these actions, which is usually the driving force behind such actions.
How it Works
Let's say you are a county judge and you are taking a bribe from a privately owned prison to sentence minor offenses more harshly in order to keep the private prison full. This would be corruption and fraud in action.