Snopes says there may be some truth to it, but the recent story going around is greatly exagerated. The photo they contend is actually real, but of a dog caught in some fishing gear...not baited...
http://www.snopes.com/critters/crusader/sharkbait.asp
So we can all go back to loving French women and Delacroix...
mounter au beurre!
-spence