Yeah this is like the boogeyman story online poker players tell their kids around campfires. Very well known for years.
I wouldn't expect it to happen anywhere else, not under the same circumstances anyway. First, the industry witnessed the near implosion of AP/UB and the horrible PR that followed them to Black Friday, afterwhich they ceased to exist. Second, the vast majority of small sites can't afford to develop their own poker software, which is why most license a network skin. They don't have access to either the client code or server code. The backdoor was coded into the server backend by the original software developers, ostensibly for debugging purposes. Russ' IT guy discovered it and wrote a tool for Russ and his select friends to use to cheat with it. It would be virtually impossible these days for a rogue employee to set something like this up and not be caught. Remember that potripper was caught by players noticing odd play and comparing their tracker databases -- this is why we keep telling people that all other reasons aside for poker not to be rigged, the fact they couldn't rig it and get it past the players analyzing millions of hands every day should be enough to convince you all by itself.