I had the same situation back in the 90's. The margin quoted to all 8 contractors on site 12.5% but it was discovered to be 25%. Agent got sacked we all got a backdated pay as well, 9 months worth in my case. Sweet.
Don't know about the odd bad apple, I've caught agents lieing about the margin several times. Come extension time I usually end up going direct. You reap what you sow.
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An agent once promised they were taking a 15% cut
Was at Goldman Sachs in 2000. There was something in the way the agent behaved I just did not like. So I told HR how much I was on and asked the markup. Turns out markup was 28% - affecting 40 contractors.
The agent refused to pay back the difference and would not even admit a mistake. Alas it went quite senior in GS (the agency supplied contractors in NY too) and the agent got fired, everyone got a backdated payrise.
I still work through the same agency - they are very very good. Although I am at a different IB now. Every agency will get the odd bad apple from time to time.
If I had not been told the margin I would have no cause for complaint. But if you are told a margin, worth getting it checked with client. These days I always do.
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