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There actually is one case of Snuff that I know of. It was in Russia, and it was child snuff. That man got out of prison in 2005. He was bringing them into the U.S to sell and the distributor got caught, and like Sebastian said the chain of events were unfolded. Several people were put in jail, and the two Americans that supposedly bought his films were never discovered. That's the only case that is public that I know of.
As far as society only having a perversion for stage death, I'd beg to differ. I think society has a perversion of all death, or else movies such as Faces of death wouldn't be wildly popular, and that's mainly just fake scenes and dieing animals. You also can't deny the fact that anything associated with a death people want to see, such as the Mr. Hands video where the horse fucked that dude and he supposedly died. There are many videos circulating the internet of deaths via car crashes, the beheading of soldiers ect. I can agree that there is no comparison and that fake verses real is very different. I also think that people want to see death mainly of interest. Just because they don't like it in the way in which they enjoy a horror movie doesn't mean the perversion doesn't exist. I'm sure it doesn't in everyone, but I think it's safe to say most people would watch death if given an opportunity simply out of curiosity. That scenario of course is still very different from killing or purchasing a snuff film.
I'd feel comfortable saying that I don't think a snuff film exists in the U.S, Canada, the UK, ect. I do think though, in other countries with slack law enforcement that it would be very easy for one to be produced and circulated, just like it would be easier to cover up a murder there.
The simple lack of news coverage, as Sebastian said makes the Snuff film an urban legend, at least in evolved societies. How could a snuff film not be discovered and a new story surface? That may be true here at least, but I'm sure it's not everywhere.
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