Maybe the way to institute a police state is to have no control over the criminal element - this justifies ever-increasing controls over the vast majority of the people, and actually gets them to ask for/demand those additional controls (sheeple work this way). The truly rich and powerful have armed guards, so they'll never be victimized. The criminal element is their tool, precisely because it is uncontrolled.
The "socially friendly" (criminal) elements kept the soviet gulags under control.