Did the fake bomb scenario actually happen? I'd be interested in reading about that.
I've seen various stories about it. In a couple cases, evidence suggested that the FBI sought out unstable individuals and convinced them to engage in terror plots (instead of working their way into existing terror groups).
> so they can publicly "break up" a terror plot
I thought it was purely to get publicity or instill fear in people while getting good press for the FBI, rather than for a sting operation.