Wednesday 6 March 2013

10 of the Biggest Lies in History

Bernie Madoff's Ponzi Scheme When Bernie Madoff admitted that his investment firm was "just one big lie," it was an understatement [source: Esposito]. In 2008, he confessed to having conned about $50 billion from investors who trusted him with their savings. Madoff used the f­ormula of a Ponzi scheme to keep up the fraud for more than a decade. This classic lie is named after the notorious Charles Ponzi, who used the ploy in the early 20th century. It works like this: A schemer promises investors great returns, but instead of investing the money, he keeps some for himself and uses the funds from new investments to pay off earlier investors. Madoff may not have invented this lie, but he took it to new lengths. For one, he made a record amount of money from the scheme. But he was also able to keep it going much longer than most Ponzi schemers. Usually, the scam falls apart quickly because it requires the schemer to constantly find more and more investors. It was also an especially shocking lie because Madoff, as a former chairman of NASDAQ, had been an accomplished and respected expert in the financial field. Compare this to Chares Ponzi, who was a petty ex-con by the time he launched his scheme. Anna Anderson, Alias Anastasia With the onslaught of the Russian Revolution, the existence of a royal family was intolerabl­e to the Bolsheviks. In 1918, they massacred the royal Romanov family -- Czar Nicholas II, his wife, son and four daughters -- to ensure that no legitimate heir could later resurface and rally the public for support. Soon, rumors floated around that certain members of the royal family had escaped and survived. As one might expect, claimants came out of the woodwork. "Anna Anderson" was the most famous. In 1920, Anderson was admitted to a hospital after attempting suicide and confessed that she was Princess Anastasia, the youngest daughter of the royal family. She stood out from other claimants because she held a certain resemblance to and surprising knowledge of the Russian family and life at court. Although a few relatives and acquaintances who'd known Anastasia believed Anderson, most didn't. By 1927, an alleged former roommate of Anderson claimed that her name was Franziska Schanzkowska, not Anna and certainly not Anastasia [source: Aron]. This didn't stop Anderson from indulging in celebrity and attempting to cash in on a royal inheritance. She ultimately lost her case in the legal proceedings that dragged on for decades, but she stuck to her story until her death in 1984. Years later, upon the discovery of what proved to be the remains of the royal family, DNA tests confirmed her to be a fake. In 2009, experts were able to finally confirm that all remains have been found and that no family member escaped execution in 1918 [source: CNN] Titus Oates and the Plot to Kill Charles II By the time he fabricated his notorious plot, Titus Oates already had a history of deception and ­general knavery. He'd been expelled from some of England's finest schools as well as the navy. Oates was even convicted of perjury and escaped imprisonment. But his biggest lie was still ahead of him. Raised Protestant by an Anabaptist preacher, Oates entered Cambridge as a young man to study for Anglican orders. After misconduct got him dismissed from his Anglican post, he started associating with Catholic circles and feigned conversion [source: Butler]. With the encouragement of fellow anti-Catholic Israel Tonge, Oates infiltrated enemy territory by entering a Catholic seminary. In fact, he entered two seminaries -- both of which expelled him. But it hardly mattered. By this time, he had gathered enough inside information and names to wreak enormous havoc. In 1678, Oates concocted and pretended to uncover a plot in which the Jesuits were planning to murder King Charles II. The idea was that they wanted to replace Charles with his Catholic brother, James. What ensued was a three-year panic that fueled anti-Catholic sentiment and resulted in the executions of about 35 people [source: Encyclopaedia Britannica]. After Charles died in 1685, James became king and had Oates tried for perjury. Oates was convicted, pilloried and imprisoned. He only spent a few years in jail, however, as the Glorious Revolution swept through England in 1688. Without James in power, Oates got off with a pardon and a pension. Piltdown Man After ­Charles Darwin published his revolutionary "On the Origin of Species" in 1859, scientists scrambled to find fossil evidence of extinct human ancestors. They sought these so-called "missing links" to fill in the gaps on the timeline of human evolution. When archaeologist Charles Dawson unearthed what he thought was a missing link in 1910, what he really found was one of the biggest hoaxes in history. The discovery was the Piltdown man, pieces of a skull and jaw with molars located in the Piltdown quarry in Sussex, England. Dawson brought his discovery to prominent paleontologist Arthur Smith Woodward, who touted its authenticity to his dying day. Although the discovery gained world renown, the lie behind Piltdown man slowly and steadily unraveled. In the ensuing decades, other major discoveries suggested Piltdown man didn't fit in the story of human evolution. By the 1950s, tests revealed that the skull was only 600 years old and the jaw came from an orangutan. Some knowledgeable person apparently manipulated these pieces, including filing down and staining the teeth. The scientific world had been duped. So who was behind the fraud? Many suspects have surfaced, including Dawson himself. Today, most signs point to Martin A. C. Hinton, a museum volunteer at the time of the discovery. A trunk bearing his initials contained bones that were stained in exactly the same way the Piltdown fossils were. Perhaps he was out to embarrass his boss, Arthur Smith Woodward, who refused to give him a weekly salary. The Dreyfus Affair Like t­he conspiracy invented by Titus Oates, this scandal was built on a lie that dramatically affected national politics and was perpetuated for years by hatred. Alfred Dreyfus was a Jewish officer in the French Army in the late 19th century when he was accused of a treasonous crime: selling military secrets to Germany. After his highly publicized trial, authorities sentenced him to life imprisonment on Devils Island, and anti-Semitic groups used him as an example of unpatriotic Jews. However, suspicions arose that the incriminating letters were in fact forged and that a Maj. Esterhazy was the real culprit. When French authorities suppressed these accusations, the novelist Emile Zola stepped up to accuse the army of a vast cover-up. The scandal exploded into a fight between so-called Dreyfusards, who wanted to see the case reopened, and anti-Dreyfusards, who didn't. On both sides, the debate became less about Dreyfus' innocence and more about the principle. During the dramatic 12-year controversy, many violent anti-Semitic riots broke out and political allegiances shifted as Dreyfusards called for reform. After Maj. Hubert Joseph Henry admitted to forging key documents and committed suicide, a newly elected Cabinet finally reopened the case. The court found Dreyfus guilty again; however, he soon received a pardon from the president. A few years later, a civilian court of appeals found Dreyfus innocent, and he went on to have a distinguished army career and fought with honor in World War I. Meanwhile, the scandal had changed the face of politics in France. Clinton/Lewinsky Affair In January 1998, citizen journalist Matt Drudge reported a sensational story tha­t turned out to be true. The president of the United States, Bill Clinton, had an affair with a White House intern, Monica Lewinsky. As suspicions mounted, Clinton publicly denied the allegations. As if this lie weren't big enough, it turned out that Clinton had lied under oath about the affair as well -- which was perjury and grounds for impeachment. Here's how the truth came out. Paula Jones was an Arkansas state employee when then-governor Clinton allegedly propositioned her. She later sued him for sexual harassment. In an effort to prove that Clinton had a pattern of such behavior, lawyers set out to expose his sexual affairs. They found Linda Tripp, a former White House secretary and confidant of Lewinsky. Tripp recorded telephone conversations in which Lewinsky talked of her affair with Clinton. Lawyers then probed Clinton with specific questions and cornered him into denying the affair under oath. During the highly publicized scandal, prosecutor Kenneth Starr subpoenaed Clinton, who finally admitted to the relationship. Based on Starr's report, the House of Representatives voted to impeach Clinton for not only perjury but obstruction of justice. Despite the scandal, Clinton maintained relatively high approval ratings from the American public, and the Senate acquitted him of the charges. However, in the eyes of many Americans, his legacy remained tarnished. Watergate Two decades before the Clinton scandal, another U.S. president was caught in a web of lies, and the controversy had devastating effects on the country as a whole. In the summer before President Richard Nixon's successful re-election to a second term, five men were caught breaking into the Democratic National Committee headquarters, housed in the Watergate Hotel. As details emerged over the next year, it became clear that officials close to Nixon gave the orders to the burglars, perhaps to plant wiretaps on the phones there. The question soon became about whether Nixon knew of, covered up or even ordered the break-in. In response to mounting suspicions, Nixon denied allegations that he knew anything. In front of 400 Associated Press editors, famously proclaimed, "I am not a crook." He was talking about whether he had ever profited from public service, but that one quote came to represent his entire political career. It was a lie that came back to haunt him. When it was revealed that private White House conversations about the matter were recorded, the investigative committee subpoenaed the tapes. Nixon's refusal on the basis of "executive privilege" brought the matter to the U.S. Supreme Court, which ruled that he had to relinquish the tapes. The tapes were exactly the smoking gun needed to implicate Nixon in the cover-up of the scandal. They revealed that he obviously knew more about the matter than he claimed. Upon the initiation of impeachment proceedings, Nixon gave up and resigned from office. The scandal left a lasting scar on the American political scene and helped usher Washington outsider Jimmy Carter into the presidency a few years later. The Big Lie: Nazi Propaganda By the time Nazism arose in Germany in the 1930s, anti-Semitism was nothing new -- not by a long shot. The J­ewish people had suffered a long history of prejudice and persecution. And although Nazis perpetuated centuries-old lies, this time those lies would have their most devastating effects. Like never before, anti-Semitism was manifested in a sweeping national policy known as "the Final Solution," which sought to eliminate Jews from the face of the Earth. To accomplish this, Adolf Hitler and his minister of propaganda, Joseph Goebbels, launched a massive campaign to convince the German people that the Jews were their enemies. Having taken over the press, they spread lies blaming Jews for all of Germany's problems, including the loss of World War I. One outrageous lie dating back to the Middle Ages claimed that Jews engaged in the ritual killings of Christian children and used their blood in the unleavened bread eaten at Passover [source: Landau]. Using Jews as the scapegoat, Hitler and his cronies orchestrated what they called "the big lie." This theory states that no matter how big the lie is (or more precisely, because it's so big), people will believe it if you repeat it enough. Everyone tells small lies, Hitler reasoned, but few have the guts to tell colossal lies [source: Hoffer]. Because a big lie is so unlikely, people will come to accept it. This theory helps us understand so many of the lies throughout history. Although we've barely scratched the surface of all those lies that deserve (dis)honorable mentions, you can satiate your historical curiosity by browsing the lists on the next page.By the time Nazism arose in Germany in the 1930s, anti-Semitism was nothing new -- not by a long shot. The J­ewish people had suffered a long history of prejudice and persecution. And although Nazis perpetuated centuries-old lies, this time those lies would have their most devastating effects. Like never before, anti-Semitism was manifested in a sweeping national policy known as "the Final Solution," which sought to eliminate Jews from the face of the Earth. To accomplish this, Adolf Hitler and his minister of propaganda, Joseph Goebbels, launched a massive campaign to convince the German people that the Jews were their enemies. Having taken over the press, they spread lies blaming Jews for all of Germany's problems, including the loss of World War I. One outrageous lie dating back to the Middle Ages claimed that Jews engaged in the ritual killings of Christian children and used their blood in the unleavened bread eaten at Passover [source: Landau]. Using Jews as the scapegoat, Hitler and his cronies orchestrated what they called "the big lie." This theory states that no matter how big the lie is (or more precisely, because it's so big), people will believe it if you repeat it enough. Everyone tells small lies, Hitler reasoned, but few have the guts to tell colossal lies [source: Hoffer]. Because a big lie is so unlikely, people will come to accept it. This theory helps us understand so many of the lies throughout history. Although we've barely scratched the surface of all those lies that deserve (dis)honorable mentions, you can satiate your historical curiosity by browsing the lists on the next page.

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