Not true - if mark has a resume listing a successful employment post-cookie incident I would call them for a reference. A good reference isn't completely trustworthy but 2 or 3 of them with good companies and I'd be convinced.
You apparently live a privelaged life then. Laws are being passed in US states to prevent criminal history from being asked until an offer has been made precisely because people are not able to get over the result.
The HR pipeline treats any sort of checkered pass as and immediate rejection, whether or not a hiring manager would treat it as such
True - 100% true. If I had a checkered past with no references I would expect to get denied for every job I applied to.
To combat this prejudice I would fully expect to have to lower my expectations in the form of lower wage or other restriction. If I offer to work for half the normal pay not only will I definitely get hired but I'll get a good reference providing I prove myself capable and trustworthy.
Why would you get a good reference? Your boss can just always give a bad reference so that your forced to stay. After all he's getting cheap labor, and you have to risk never getting employed again.
You're coming at this from a viewpoint that implies that companies want to help people, when we are already dealing with that fact that they absolutely do not
Once Mark goes to company B, they find the cookie monster article and make Mark completely rebuild trust from scratch.
Then Mark has to move, and goes to company C. The cycle repeats again.
Thus Mark is never able to truly get over the cookie monster incident.