ARE YOU FREAKING KIDDING ME?
I've encountered these guys before. What happens is the guy gets into a little trouble, which can be "made to go away" if he renders some valuable assistance. The people he entraps are often given similar deals.
The Ruby Ridge incident with Randy Weaver started out that way. Weaver was entrapped into gunsmithing a shotgun that was a little under the legal limit. He was then given a choice: go to jail, or infiltrate and inform on the Aryan Nations.