skygiants

I don't remember an example involving a moustache-twirling villain, but Agatha Christie did one where the police immediately latch on to an obvious suspect who was practically found standing over the body shouting "I did it", which everyone knows is a sure sign they're chasing a red herring, and then it turns out in the end that he actually did do it and deliberately plotted to be found the obvious suspect so that nobody would suspect him.