Yup, bad beats never happen in live poker. This is a hand from the ME, I copied it from cardplayer.com :
John Armbrust raised to $700,000 from the big blind. Lee Childs had limped from the button, but now reraised to $1,700,000. Armbrust quickly went all-in for approximately $5,000,000. Childs seemed unsure about what to do, and took several minutes before he eventually decided to call with the A
. Armbrust revealed his dominant A
and the two went to the flop with Armbrust's tournament life on the line. The flop was a nightmare for Armbrust, bringing the J
. The pause before the turn must have been agonizing for Armbrust, but not nearly as painful as when the 10
hit the turn. With that he was drawing dead. Armbrust took 18th place and $381,302.
Like I said, it never happens live.