Penn State Scandal And Conspiracy Theories

Mano Singham has an interesting question regarding the Penn State child rape scandal:  How far did the Penn State rot spread? 

Normally, this blogger is quite skeptical of conspiracy theories.  However, it is apparent that, within the culture of a large, closed and authoritarian organization such as major college football or the Catholic Church, people can be pressured to overlook harm to individuals to protect the organization and their place in it.  Knowing personally how major sport coaches communicate very closely with each other (this blogger has two relatives in that situation), Mano's speculation may have merit.

Note the difference between a large, closed authoritarian organization and a political democracy.  Many conspiracy theories center around the US government.  Within the representative democracy of the USA, how likely is it that the government can plan and execute a conspiracy?  Even if it did, how likely is it that none of the perpetrators will leak information about the conspiracy?