I've seen it happen multiple times.
Bungie still does not have Dedicated Host Servers, so SLR, Crucible, IB, ToO, Strikes and Raids are all subject to whom is host, and if your not host, your subject to crap like this. Yesterday I reported 4 people for clearly lag switching. They would be behind me, then in front of me instantly - not passing me just instantly moving ahead. Some were listed as in 6th place, but in front of me in 3rd place.
My connection is great (27 mbps down, 5 mbps up, < 25 ms ping time to MS Server, < 2 ms jitter), but that simply doesn't matter when some person in Africa using dialup connection is host. And if they had dedicated servers, then they would not need a Police force, as you can't be host so no directed DOS, IP Exploits or Lag Switching to affect others.
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I am 41 years old and I still will never understand the allure of cheating in these games. All it does is get them everything faster to the point where there is no challenge nor anything left to work towards as well as grief to others. Basically it just sucks the fun out of everything.