Everyone around him knew and participated to some extent.
His postdocs (except the one who said no), his PhD students, and all his other co-authors.
They all knew and never said a word.
When Cornell was told, they made some pious noises and ignored it until it became too public.
Journals ignored all criticism until it became too public.
This is a system that does not police fraud.
Now I am paid usually $45,000 - $60,000 per year to talk on a phone to people who need help filling out a web form in order to buy something. It's a bit absurd. I don't mind this work and it is good money. It keeps me and my girlfriend fed and sheltered.
Why is the university system so negligent and abusive towards those who invent new ideas and teach new inventors?
Have you considered the possibility that academia is paying researchers/etc what they are worth on average? Its just that the majority of people being paid are generating near zero, or negative, value to society.
So, you have consumers (students and their parents) paying real money for a real education that they are hoping will result in gainful employment. Either millions of students are overpaying every year, or the system provides some value.
Now, the ones delivering that value (grad students) are receiving maybe $8,000 per semester while teaching 100 students lets say, while the students are paying collectively nearly $1,000,000 for 4 months of tuitoon.
Where does the other $992,000 go, besides administrator salaries and football stadiums?
I mean, if the monkey doing the can generate 900k of value per year, but a human doing is can generate 1MM per year, then it would be better to hire the human for anything up to 96k/year (assuming peanuts cost less than 1k/quarter).
Its the former, except the government is paying for it...
EDIT:
I say this as someone who got paid by the government via academia to torture rodents for no reason for years.
The government of course gave me the loan for inflated price of attending uni, but goddamnit I paid for it myself with my own blood and tears.
I'm saying that when a grad student or adjunct teaches a class, they get paid a few thousand dollars. The students in that class are paying 100x that amount in tuition.
I'm implying that grad students should be paid more for this service, instead of the money going to administrator salaries and football stadiums.