Noun
fairytale - A children's story about magical and imaginary beings and lands; or something that is too good to be true or seems unreal.
He told a fairytale about how he got the job, but no one believed him, and people suspected that he had a relative in management.
nepotism - When those with power or influence favor relatives, friends, or associates, such as by giving them jobs or ruling in their favor.
The public was disappointed by the nepotism of the newly elected mayor, when they saw that his whole government was filled with incompetent friends and relatives.