There are two major problems facing world Tae Kwon Do Instructors (actually more than two, but two I'll address):
1. Rank inflation
2. Credibility of Instructors
As Brad stated, he kwnows boatloads of Instructors passing themselves off as 7th, 8th, and 9th Dans. A quick glance of any Yellow Pages, and I do mean any, will quickly show many Instructors, Korean and non-Korean, passing themselves off as 7th, 8th, and 9th Dan Masters and Grandmasters. Many of these guys are not that old either. There are a plethora of claimed high Dan Instructors. Legitimate Dan holders is another matter.
Keep in mind, it is not hard at all to forge or obtain forged and phony certificates, and get shady Instructors to vouch for you. World Head of Family Sokeship anyone? Pay the fees, and presto, you have the backing the best Instructors money can buy. Which leads to me to point 2.
2. Having an Instructor claim 7th, 8th, and 9th Dan is one thing. Having an Instructor with the proper credibility to justify those ranks is quite another. How many Instructors have I met or read about who created their own organization, then certified themselves through it? Many. Very easy way to obtain 8th and 9th Dan. Simply create the _______ Tae Kwon Do League/Brotherhood/Association/ etc., issue your certificates through it, and you get all the ego building of claimed 9th Dan recognition without all the anoying credibility building over 50 years that goes along with it.