Board Thread:Speculation House/@comment-24019512-20140801001528/@comment-24994749-20140801022919

Glynda did show a certain level of reaction to Cinder when she walked to face her during the battle in Volume 1 Episode 1. It is possible Glynda and Ozpin know Cinder is in shady business but they can't prove it.

Following the Harry Potter references, Dumbledore knew Voldemort was up to no-good with his Death Eaters long before they became criminals chased by the Ministry of Magic.