The Distribution of Fake British Pounds in the Biggest Money Counterfeiting Scheme in History

ABSTRACT Operation Bernhard was the largest money counterfeiting scheme of all time. The secret Nazi operation, set up in the Sachsenhausen concentration camp with a workforce of Jewish prisoners, produced many millions of near-perfect counterfeit British pounds with the aim of destabilizing the currency. The initial plan to airdrop the counterfeits over Britain was adapted to distribution on the ground all over Europe. While the production side of the operation has enjoyed coverage in academic and popular publications, scarcely anything is known about the distribution of the counterfeits. This vacuum in the history of Nazi Intelligence is the focus of this article. Historical network analysis was employed as this framework proved particularly useful where original source material is scarce. A graphic visualization of the distribution network further facilitates the understanding of a complex semi-structured arrangement of people under the control of the SS. Nazi officials passed fake pounds to agents who bought other currencies, gold, valuables, weapons, scarce materials, and information with it. The distribution of the counterfeit pounds was cause for the greatest embarrassment in the history of the Bank of England.