I once knew a recruiter who placed a SWE as a contractor at a large media / telecom company in Philly. They made huge gross margin, the candidate aced the interview and did a great job for a couple of years. Then it all came crashing down when the client went to convert the candidate full time. Why? Both the recruiter ended up finding out the candidate completely fabricated his work experience. The work experience the candidate entered for the background check was completely different than the information he entered for the contract role. Not just that, it was half of the experience. The offer ended up getting pulled, and the recruiter's company ended up getting kicked off the vendor list. It's crazy because had they just kept the candidate working as a contractor, he might still be working there as if nothing happened.