The other grading company mentioned in the article, ASA, was run by Alan Hager, who was known for slabbing his own cards.
While I don't think this is still an issue, with respect to PSA, other conflicts of interest definitely still persist. Simply look at the thread related to Small Traditions or any number of other threads on the topic.
Here's my sole ASA graded card example, which, although overgraded, is 100% authentic!! You certainly don't see many ASA holders out there any more!!
__________________
...
http://imageevent.com/derekgranger
HOF "Earliest" Collection (Ideal - Indiv): 244/342 (71.4%)
1914 T330-2 Piedmont Art Stamps......: 114/119 (95.8%)
1923 V100 Willard's Chocolate............: 177/180 (98.3%)