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Re:Interview with an Auschwitz Guard: 'I Do Not Feel Like a ... by alexjeffrey on Saturday September 06, 2014 @05:29PM (#8279542)
There's a term for this exact phenomenon - Little Eichmann:

http://en.wikipedia.org/wiki/Little_Eichmanns

This ties into the concept of the "Banality of evil" which plays out pretty much exactly as you described.

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