Such was the reputation of Ferdinand de Lesseps after his success with the Suez Canal, that when he announced his intention of building a similar canal in Panama, thousands of small French investors sunk their savings into his company formed to finance the project. He was a famous and respected figure in France, loved by his countrymen, and he managed to gain the support of many a dignitary to help with the running of his company, the Compagnie Universelle du Canal Interoceanique. Baron de Reinach and Cornelius Herz, together with a number of international investors (many of whom were [L3 401 / Jewish]), were given control over the company's finances.
When de Lesseps' project turned out to be a massive failure, the company was placed into liquidation in February 1889. Not only had his construction work been a disaster primarily because of disease, but his company also filed for bankruptcy after some $237 million was spent on what would eventually turn out to be nothing. Following accusations of bribery, mismanagement and corruption, an official government inquiry was set up in 1892 that resulted in de Lesseps, his son Charles and a number of the leading associates being charged for fraud and sentenced to imprisonment. At the same time, however, information was leaked that the French government was also involved, having accepted bribes from the company. Hence the scandal was turned into both a financial and political hornets' nest. Subsequently, de Lesseps did not have to serve his prison term, but his son did (albeit briefly after the appeals court reversed its decision).
