If you pass on a candidate (before the offer stage) based on a back-channel reference, then you're being unethical but you probably won't get caught, because people rarely probe (or are even able to do so) into why someone pased. If you actually rescind an offer over a bad reference... you'll have to cut a sizable hush fee to come out safe.
That said, I can't tell at this point if your fascist schtick is trolling or serious, but it's disturbing either way.