Yep, I can personally attest that a director at one large corporation has a BOUGHT undergraduate degree, and no other education.
He inherited the position from the hardworking founder through being extremely good at people skills and corporate backstabbing (he should have a degree in that :) ). It saddens me and makes me a bit more cynical every time I see him.
The corporation survives because these monsters are mostly self-sustaining, and those at lower levels do the actual work (I wouldn't give it a chance if some disruption came along, though).