Ah, you mean crony Capitalism.
You just defined it very well.
cro·ny·ism [kroh-nee-iz-uhm] Show IPA noun the practice of favoring one's close friends, especially in political appointments.
cap·i·tal·ism [kap-i-tl-iz-uhm] Show IPA noun an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth.
crony capitalism - You are seeing reference results for crony capitalism because there's not a match on Dictionary.com.
There you go, from dictionary.com, do try and educate yourself, because the enemies of capitalism are counting on your ignorance. So far, so good...for them.