stream The Arizona case marked the first felony conviction for Turner, who built a fortune around his Orlando-based pyramid sales 20 years ago. NEWS RELEASE SUMMARYSeptember 1, 2021. At the meeting Turner's proteges would run to the stage in their flashy suits and fancy shoes, with $100 or even $1,000 bills pinned to their lapels. We are forever suspicious, convinced someone else wants to profit at our expense. 0000004799 00000 n 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. 0000005760 00000 n Dougherty also ordered Turner and Rector to pay $44,000 each in fines to be distributed to victims. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. that our program was a crime," he said. Last month Turner, who turned 53 on Wednesday, and Rector, 57, were convicted on one count of conspiracy, nine counts of fraud, and nine counts of running an illegal pyramid sales scheme. Senate. [5], The State of California filed suit against Holiday Magic in December, 1972. They drove new Cadillacs and wore alligator shoes. [12] Holiday Magic was also labeled a "pyramid scheme" and a "multi-level distributorship" by the United States Bureau of Domestic Commerce, in their 1976 published book: Crimes Against Business: A Management Perspective. Generally, the product or service is of poor quality, overpriced, or has no purpose other than as a ploy to give the company the appearance of legality. Unfortunately, the multi-level cosmetic company became entangled in numerous legal difficulties and went out of business in the . In the low-interest-rate environment of the past decade, investors put up money with little diligence, and fake it till you make it turned toxic. they indicted me on aiding and abetting running a pyramid scheme. https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. 0000005276 00000 n 748 as an example of pyramid schemes. 0000006496 00000 n [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. Two dwarfs would hop out and unroll a red carpet. Sign up for a weekly roundup of thought-provoking ideas and debates. L|B@9`CwX}LKC 0000002472 00000 n If he never quite tells us what made Glenn Turner runthat is was he a con artist or merely an overeupeptic free enterpriser?no one else knew either, including perhaps Turner. Turner and a partner, Edward Rector, 57, were sentenced to seven years in prison in Arizona in August on charges of operating a pyramid scheme there and defrauding investors through a self-motivational company called Challenge Inc. Connect with the definitive source for global and local news. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. A group of a half-dozen former Challenge participants, who would not give their names, said after the sentencing that Turner and Rector did nothing wrong. Glenn W. Turner, who was frequently described himself as a harelipped sharecropper's son (leaving some doubt as to which of them was afflicted), built an ephemeral fortune on a pyramid selling scheme in the late 1960's and early 70's. These levels (as in "multi-level marketing") could make money by getting commissions from recruiting other participants to work as salespeople, supervisors or directors, and getting commissions on orders of cosmetics from other lower level recruited participants. %PDF-1.7 % "It is hard for me to believe . They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. %%EOF Koscot Interplanetary was a company from Orlando, Florida, selling mink oil-based cosmetics and was started by Glenn W. Turner in 1967. of plan, which will be referred to as the Glenn Turner or multi-level distributorship scheme, the promoters offer to the public a series of contracts called "Adventures." The promised El Dorado, however, was reserved for those who put up the requisite amount for becoming distributors; this gave them the right to sell distributorships to others, retaining a healthy percentage of the fee. Anyone can read what you share. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> He seems to have been equal parts P. T. Barnum, Horatio Alger, snake oil salesman and evangelist. trailer 84 F.T.C. These circumstances have led us into a society that is both more cynical and more predatory, both more receptive to and encouraging of outright fakers. 0000003018 00000 n 0000001036 00000 n [5][29], William Penn Patrick bought Mind Dynamics in 1970. . As Mr, Maxa notes, Americans have always had a weakness for successful rogues. The Last Podcast on the Left, a podcast covering topics like serial killers, conspiracy theories, and cults, discussed Holiday Magic on a 2023 episode about David Miscavige. . Committee on Banking, Housing and Urban Affairs. 0000043655 00000 n v. Holiday Magic, Inc., et al., N.D. California, Civil Action No. Lotstein acknowledged that not all of the Challenge "victims" were pleased that Turner was prosecuted. Charges were then dropped against Bailey. Government needs to return to enforcing meaningful financial regulation; politicians and entrepreneurs who deceive their supporters need to face consequences. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. Turner's fame and wealth was to be an inspiration for others to buy franchises so that "they could all be rich and successful like him". In the Arizona case, Turner represented himself -- a stark change from the days in the early '70s when renowned defense attorney F. Lee Bailey represented him in his Koscot dealings. PHOENIX Glenn W. Turner, creator of the "Dare to Be Great" motivational plan, surrendered to Arizona authorities today to face 126 counts of fraud and other charges after waiving extradition. The saying became so pervasive in Amway that it would be the title of a 1980s expos by Phil Kerns. What a fine madness it was, the heyday of Dare to Be Great. The Rise and Fall of Glenn Turner and His Financial Pyramid, https://www.nytimes.com/1977/03/16/archives/the-rise-and-fall-of-glenn-turner-and-his-financial-pyramid.html. 0000037334 00000 n Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . Dougherty said he had received "hundreds" of letters in support of Turner. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d Participants could pay $2,000 to be a supervisor or $5,400 to be a director. 0000006933 00000 n (Javice has denied the banks claims.) A nine-month trial ended in a hung jury. 0000031956 00000 n "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. . Civ. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. "[23] One of the Holiday Magic Inc. cases was also cited by The University of Chicago Law Review[24] and the Columbia Law Review. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. Since his victims were usually the little people, the guys who are always getting it in the neck from the system anyway, it was a matter of hitting cripples. "[9], The company was investigated by the Federal Trade Commission,[4][10] and in June 1973 the company was found guilty of deceptive trade practices. : A Case Study of Pyramid Sales Plan Regulation", "Glenn Turner, Empire Toppled, Trying Again to Sell Motivation", "Glenn Turner -- Out Of Luck; Fraud Sentencing May Be His Day Of Reckoning", "Koscot Cosmetics Accused Of Illegal Business Actions", "Koscot and Turner Cited in Complaint Filed by the S.E.C. "Our intent was to help people believe in themselves.". The book has its lighter moments. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. JPMorgan Chase fell for Frank, a college financial planning outfit whose customer base it later (allegedly) discovered was mostly made up of fake email addresses created at the behest of founder Charlie Javice. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. The sentencing of Dare to be Great supersalesman Glenn Turner, convicted of operating an illegal pyramid scam in Arizona, has been delayed for a week. Turner's long gone from the As Elizabeth Holmes gives way to Sam Bankman-Fried, who gives way to George Santos, its worth pondering why our society has embraced an ethos popularized by a huckster such as Turner. . In the end, Turner was saved by New Orleans evangelist, known as the Chaplain of Bourbon Street, who also pointed the way to fiscal salvation by introducing Turner to his own business managera former minister himself. As a subscriber, you have 10 gift articles to give each month. Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. trailer U.S. District Court documents in Orlando indicate there are dozens of other Turner creditors, but it is unlikely they will be paid from any proceeds from the Castles sale, officials said. 0000007782 00000 n 0000037159 00000 n Corbins office won a civil case against Turner over Challenge in 1983, ordering him to pay $1.5 million in restitution and $1 million in penalties. DeMuro, RG. "The first time I ever heard those words from those men was in this courtroom," Rector said. Self-help culture took that to ludicrous places: Whatever the mind can conceive and believe, it can achieve, claimed wealth guru Napoleon Hill in Think and Grow Rich.. [4], The Securities and Exchange Commission also filed a lawsuit in 1972 charging that Koscot's program should be considered a security and comply with securities laws and regulations. As we transitioned from a society that manufactured things to one whose products were intangible, reality was increasingly in the eye of the beholder or the pitchman. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. 2(a) OF THE CLAYTON ACT Docket 8834 (1974), MLM Law - Lawyer Grimes & Reese PLLC - Attorney Specializing in Multilevel Marketing - Marshall v. Holiday Magic, Inc. (1977) 550 F.2d 1173, Door to Door Selling, Pyramid Selling, Multilevel Marketing, "L.A. Con Artist Behind Alleged Electricity Scam: Pyramid scheme linked to coming deregulation", "First Amendment Protection for Commercial Advertising: The New Constitutional Doctrine", "The Chaos of Multilevel Marketing and Pyramid Sales Laws: A Federal Remedy", In Re Koscot Interplanetary Inc., 86 F.T.C. 0000006135 00000 n ={w5d[#"zM#h:.d\r,&4* 76I\@yH'H}T4idJq$nVsL(sXk TN4%8k;|PqK+I:p*K"&Z{Z;o;}X8z}r%. Our intent was never to go out and commit a criminal act., Later, as he was leaving the courtroom in handcuffs, Turner told reporters, I think history will tell what I really was. The history of fake it till you make it offers a lesson here, if we want to heed it. But the notion that you can fake it until you make it began to spread through multi-level marketing efforts such as Turners, where studies show few earn a profit and deception is rife. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. It all carne tumbling down eventually. Its backed by no government, is all but impossible to use and serves no legal need. Glenn W. Turner, who was frequently described himself as a "harelipped sharecropper's son" (leaving some doubt as to which of them was afflicted), built an ephemeral fortune on a pyramid. (unrelated to Holiday Magic). I didn't take it seriously because I was running for . Turner would emerge under a banner reading "Dare to Be Great" and vacuum up money through a pyramid marketing scheme based on selling motivational tapes containing the secret of getting rich. Turner, Rechtor and a third man, Alan K. Oaks, were accused of defrauding Arizona residents who were promised incomes of $1,000 to $3,000 a month if they invested $5,000 to become sales people for Challenge Inc. Investors were subjected to highly emotional sales and promotion techniques in a process described by company insiders as jacking up prospects, Assistant Attorney General R. Jeffrey Woodburn said during the trial. On this Wikipedia the language links are at the top of the page across from the article title. 271 0 obj The unfinished castle, its boathouse, stables and surrounding 79 acres will be sold to the highest bidder after a federal court hearing April 26, according to court documents. [10] The FTC's decision on Koscot set a precedent for defining if a company is engaging in illegal pyramiding. %%EOF Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. As a subscriber, you have 10 gift articles to give each month. [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. It's easy and secure. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. <> As he was led off to jail, he told reporters: The good that I have done outweighs the bad. 0000001769 00000 n 0000001036 00000 n "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. Select the best result to find their address, phone number, relatives, and public records. 0000023769 00000 n Illustrated. A technicality of the law is what got me. By the time he died in 2020, it took more than a year for a newspaper reporter to stumble across his Legacy.com obituary and make note of his death. "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX Thus one gets sentences such as Meanwhile, in a downtown Frankfurt prison, thirtyeightyearold Turner astounded a U.S. State Department official who visited his cell to explain that the British had requested his arrest on possible charges of fraud in England. Fine time to find out Turner's age. At the same time, the federal government became less likely to prosecute obvious malfeasance. "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. Turner, imprisoned in Arizona prison for fraud, has owed the IRS millions of dollars in back taxes for more than a decade, and the agency has succeeded in foreclosure proceedings against the property in Seminole County. And we need to be less credulous and stop falling for the next shiny thing. For more information, visit the listing at bit.ly/2mgnmna. If anybody was hurt by our program or suffered because of it, I am sure sorry, Rechtor said. [12] The indictment said that Bailey had appeared in a film made for Turner's organization and had appeared with Turner at several rallies. 0000008424 00000 n Mr. Maxa has missed very little about Turner's operations and the soueces of his appeal. Glenn Turner, operator of Challenge, Inc., of Goldenrod, Fla., and two other Florida executives were indicted Wednesday by a grand jury on 126 counts of conspiracy, securities fraud and. Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). Glenn W. Turner worked briefly for Holiday Magic in 1966. Box 1. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. 0000041306 00000 n 0000005760 00000 n 0000002472 00000 n Summary of this case from Great Western Bank & Trust v . Stewart was behind the societal curve. Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. A few of their supporters cried as the sentences were read. 0000009459 00000 n )[6] [1] Distributors for Holiday Magic, who took the course, have considered it as a Holiday Magic Business expense. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. 0000023769 00000 n One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. See the article in its original context from. [7] Disillusioned recruits testified against Turner or his companies, and one judge cited the phrase ('fake it until you make it') as evidence of malfeasance. Lawyers for Turner and Rector asked Dougherty to let their clients remain free while they appealed their convictions. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. xref Glenn Turner was, as he liked to tell anyone within earshot of his pitch, sharecropper's son and a gradeschool dropout and had a harelip (albeit corrected by surgery) who had lifted himself up by his expensive unborncalfskin bootstraps to the leadership of a $100 million business empire. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. See the article in its original context from. As inequality grew, almost all gains went to those already at the top, leaving many convinced that pretending to be on top already was the best way to make it so. <>stream Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. His sales rallies became legend. "And so can you," they would tell the crowd. Before the IRS gets its share, Seminole County has the right to collect $16,900 in unpaid property taxes for 1987, said county Tax Collector G. Troy Ray. By the spring of 1969, Turner was living in a large home on Lake Maitland near Orlando Florida, and "had eight Cadillacs and a Rolls-Royce, three Learjets and a closetful of tailor-made suits and alligator shoes". This is a good little book about an earnest con artist who ripped off the American public for $75 million. 0000003563 00000 n [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". Food delivery services such as Grubhub and Postmates included restaurants on their platforms that didnt have contracts with them. 6, 19, 24., Library of Congress. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. Its inherently manipulative, deceptive, fraudulent, inauthentic, says Robert L. FitzPatrick, co-author of False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. Yet, he adds, its just entered the culture, and its completely normalized.. [17] Turner described it as one of the first "pyramid marketing" companies in America. Maricopa County Superior Court Judge. 256 pages. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. [7] He told reporters as he was led away to jail: The good that I have done outweighs the bad. Mr. Maxa cannot resist quoting H. L. Mencken's observation that no one ever went broke underestimating the intelligence of the American public. ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". However from a technical perspective, there are differences in the way the two types of schemes operate. 0000000016 00000 n He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. 0000031956 00000 n 0000002742 00000 n Even then, he never stopped explaining. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. The Glenn Turner court was confronted with the pyramid sales scheme of Dare to Be Great, Inc., a wholly owned subsidiary of Glenn W. Turner Enterprises, Inc. Ostensibly Dare sold through four "adven-tures" and one "plan" a motivation training course consisting of printed 124., July 6, 1977. [13], The company was cited by the United States House of Representatives in a 1975 hearing[14] as an example of consumer fraud, again in 1977,[15] and in 1991, in a hearing by the House Committee on Small Business. While prosecutors and defense attorneys haggled over legal issues for an hour before the sentencing, Turner, wearing a blue suit, boots and a shirt with a wrinkled collar, yawned and winked at more than 20 friends and supporters in the courtroom. 0000003839 00000 n endobj United States Senate election in Florida, 1974, "Meet the con man who sold America on 'fake it till you make it', "Dare to be Great, Inc! 0000041122 00000 n Just when one has about decided there is little more one wants to know about the harelipped sharecropper's son, the book changes focus to the years of various legal proceedingssecurities irregularities, mail fraud, obtaining money through false pretensesthat finally stopped the unstoppable Turner. 0000002201 00000 n Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. 1973), participants in a pyramid sales scheme were found to be security holders, since they invested their funds in a common scheme dependent for success directly upon the collective sales efforts of the organization. During the eight-week trial, however, two former top Turner aides testified that Challenge officials knew their operation was illegal. Our intent was to help people. ,'nuG>wP6T7:"K3'G9U ", "Opinion This all-but-forgotten con man sold America on 'fake it till you make it', Juice Plus AKA National Safety Associates, European Grouping of Marketing Professionals, https://en.wikipedia.org/w/index.php?title=Koscot_Interplanetary&oldid=1142208959, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 1 March 2023, at 02:56. %PDF-1.7 % Extensive notes. New York: William Morrow & Co. $8.95. [5] Targets for citations in Chain Letter Evolution. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB PHOENIX, Ariz. -- Promoter Glenn Turner, who became a millionaire through self-motivation businesses, was sentenced with his business partner to seven years in prison Thursday for defrauding. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. But that came later. 1974., May 20, 1974. Under this type. Glenn Turner's Winter Park castle currently is for sale for $1.8 million. Connect with the definitive source for global and local news. On May 16, 1974, a compromise settlement with approximately 31,000 class members, establishing a trust fund worth $2,600,381, was approved by the court. 58.95. 0000003563 00000 n hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S [22] According to the Duke Law Journal: "Illegality permeated every facet of the promotion of the Holiday Magic marketing program. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). 0000003018 00000 n Turner and his best. "Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug Law. JrsJk**j;{:[Z{&N. In 1975, Turner pleaded guilty to a single charge of violating securities laws and was given probation. "Holiday Magic Inc.: An Anatomy of a Scam", United States Securities and Exchange Commission, MLM Law - Lawyer Grimes & Reese PLLC - Attorney Specializing in Multilevel Marketing - HOLIDAY MAGIC, INC., ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. Escaped jail in 1975 when a federal jury in Florida was unable to reach a after... 19, 24., Library of Congress that bilked thousands of investors fraud trial shiny! 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But faking it in matters of money is another matter entirely. Wk. 0000007782 00000 n Cryptocurrency arrived, basically a fake it till you make it form of money. 0000010114 00000 n I have often wondered if Amway distributors borrowed this terminology from Turners group, or was it Turner who confiscated these words and phrases from some Amway distributors? Kerns wrote. Referring to Charles Ponzi, who earlier this century put together a huge investment swindle that still bears his name, Lotstein said, "I imagine there are still people that feel that Mr. Ponzi was doing good for the world. 0000037159 00000 n 164 0 obj <>stream The Arizona case marked the first felony conviction for Turner, who built a fortune around his Orlando-based pyramid sales 20 years ago. NEWS RELEASE SUMMARYSeptember 1, 2021. At the meeting Turner's proteges would run to the stage in their flashy suits and fancy shoes, with $100 or even $1,000 bills pinned to their lapels. We are forever suspicious, convinced someone else wants to profit at our expense. 0000004799 00000 n 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. 0000005760 00000 n Dougherty also ordered Turner and Rector to pay $44,000 each in fines to be distributed to victims. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. that our program was a crime," he said. Last month Turner, who turned 53 on Wednesday, and Rector, 57, were convicted on one count of conspiracy, nine counts of fraud, and nine counts of running an illegal pyramid sales scheme. Senate. [5], The State of California filed suit against Holiday Magic in December, 1972. They drove new Cadillacs and wore alligator shoes. [12] Holiday Magic was also labeled a "pyramid scheme" and a "multi-level distributorship" by the United States Bureau of Domestic Commerce, in their 1976 published book: Crimes Against Business: A Management Perspective. Generally, the product or service is of poor quality, overpriced, or has no purpose other than as a ploy to give the company the appearance of legality. Unfortunately, the multi-level cosmetic company became entangled in numerous legal difficulties and went out of business in the . In the low-interest-rate environment of the past decade, investors put up money with little diligence, and fake it till you make it turned toxic. they indicted me on aiding and abetting running a pyramid scheme. https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. 0000005276 00000 n 748 as an example of pyramid schemes. 0000006496 00000 n [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. Two dwarfs would hop out and unroll a red carpet. Sign up for a weekly roundup of thought-provoking ideas and debates. L|B@9`CwX}LKC 0000002472 00000 n If he never quite tells us what made Glenn Turner runthat is was he a con artist or merely an overeupeptic free enterpriser?no one else knew either, including perhaps Turner. Turner and a partner, Edward Rector, 57, were sentenced to seven years in prison in Arizona in August on charges of operating a pyramid scheme there and defrauding investors through a self-motivational company called Challenge Inc. Connect with the definitive source for global and local news. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. A group of a half-dozen former Challenge participants, who would not give their names, said after the sentencing that Turner and Rector did nothing wrong. Glenn W. Turner, who was frequently described himself as a harelipped sharecropper's son (leaving some doubt as to which of them was afflicted), built an ephemeral fortune on a pyramid selling scheme in the late 1960's and early 70's. These levels (as in "multi-level marketing") could make money by getting commissions from recruiting other participants to work as salespeople, supervisors or directors, and getting commissions on orders of cosmetics from other lower level recruited participants. %PDF-1.7 % "It is hard for me to believe . They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. %%EOF Koscot Interplanetary was a company from Orlando, Florida, selling mink oil-based cosmetics and was started by Glenn W. Turner in 1967. of plan, which will be referred to as the Glenn Turner or multi-level distributorship scheme, the promoters offer to the public a series of contracts called "Adventures." The promised El Dorado, however, was reserved for those who put up the requisite amount for becoming distributors; this gave them the right to sell distributorships to others, retaining a healthy percentage of the fee. Anyone can read what you share. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> He seems to have been equal parts P. T. Barnum, Horatio Alger, snake oil salesman and evangelist. trailer 84 F.T.C. These circumstances have led us into a society that is both more cynical and more predatory, both more receptive to and encouraging of outright fakers. 0000003018 00000 n 0000001036 00000 n [5][29], William Penn Patrick bought Mind Dynamics in 1970. . As Mr, Maxa notes, Americans have always had a weakness for successful rogues. The Last Podcast on the Left, a podcast covering topics like serial killers, conspiracy theories, and cults, discussed Holiday Magic on a 2023 episode about David Miscavige. . Committee on Banking, Housing and Urban Affairs. 0000043655 00000 n v. Holiday Magic, Inc., et al., N.D. California, Civil Action No. Lotstein acknowledged that not all of the Challenge "victims" were pleased that Turner was prosecuted. Charges were then dropped against Bailey. Government needs to return to enforcing meaningful financial regulation; politicians and entrepreneurs who deceive their supporters need to face consequences. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. Turner's fame and wealth was to be an inspiration for others to buy franchises so that "they could all be rich and successful like him". In the Arizona case, Turner represented himself -- a stark change from the days in the early '70s when renowned defense attorney F. Lee Bailey represented him in his Koscot dealings. PHOENIX Glenn W. Turner, creator of the "Dare to Be Great" motivational plan, surrendered to Arizona authorities today to face 126 counts of fraud and other charges after waiving extradition. The saying became so pervasive in Amway that it would be the title of a 1980s expos by Phil Kerns. What a fine madness it was, the heyday of Dare to Be Great. The Rise and Fall of Glenn Turner and His Financial Pyramid, https://www.nytimes.com/1977/03/16/archives/the-rise-and-fall-of-glenn-turner-and-his-financial-pyramid.html. 0000037334 00000 n Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . Dougherty said he had received "hundreds" of letters in support of Turner. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d Participants could pay $2,000 to be a supervisor or $5,400 to be a director. 0000006933 00000 n (Javice has denied the banks claims.) A nine-month trial ended in a hung jury. 0000031956 00000 n "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. . Civ. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. "[23] One of the Holiday Magic Inc. cases was also cited by The University of Chicago Law Review[24] and the Columbia Law Review. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. Since his victims were usually the little people, the guys who are always getting it in the neck from the system anyway, it was a matter of hitting cripples. "[9], The company was investigated by the Federal Trade Commission,[4][10] and in June 1973 the company was found guilty of deceptive trade practices. : A Case Study of Pyramid Sales Plan Regulation", "Glenn Turner, Empire Toppled, Trying Again to Sell Motivation", "Glenn Turner -- Out Of Luck; Fraud Sentencing May Be His Day Of Reckoning", "Koscot Cosmetics Accused Of Illegal Business Actions", "Koscot and Turner Cited in Complaint Filed by the S.E.C. "Our intent was to help people believe in themselves.". The book has its lighter moments. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. JPMorgan Chase fell for Frank, a college financial planning outfit whose customer base it later (allegedly) discovered was mostly made up of fake email addresses created at the behest of founder Charlie Javice. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. The sentencing of Dare to be Great supersalesman Glenn Turner, convicted of operating an illegal pyramid scam in Arizona, has been delayed for a week. Turner's long gone from the As Elizabeth Holmes gives way to Sam Bankman-Fried, who gives way to George Santos, its worth pondering why our society has embraced an ethos popularized by a huckster such as Turner. . In the end, Turner was saved by New Orleans evangelist, known as the Chaplain of Bourbon Street, who also pointed the way to fiscal salvation by introducing Turner to his own business managera former minister himself. As a subscriber, you have 10 gift articles to give each month. Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. trailer U.S. District Court documents in Orlando indicate there are dozens of other Turner creditors, but it is unlikely they will be paid from any proceeds from the Castles sale, officials said. 0000007782 00000 n 0000037159 00000 n Corbins office won a civil case against Turner over Challenge in 1983, ordering him to pay $1.5 million in restitution and $1 million in penalties. DeMuro, RG. "The first time I ever heard those words from those men was in this courtroom," Rector said. Self-help culture took that to ludicrous places: Whatever the mind can conceive and believe, it can achieve, claimed wealth guru Napoleon Hill in Think and Grow Rich.. [4], The Securities and Exchange Commission also filed a lawsuit in 1972 charging that Koscot's program should be considered a security and comply with securities laws and regulations. As we transitioned from a society that manufactured things to one whose products were intangible, reality was increasingly in the eye of the beholder or the pitchman. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. 2(a) OF THE CLAYTON ACT Docket 8834 (1974), MLM Law - Lawyer Grimes & Reese PLLC - Attorney Specializing in Multilevel Marketing - Marshall v. Holiday Magic, Inc. (1977) 550 F.2d 1173, Door to Door Selling, Pyramid Selling, Multilevel Marketing, "L.A. Con Artist Behind Alleged Electricity Scam: Pyramid scheme linked to coming deregulation", "First Amendment Protection for Commercial Advertising: The New Constitutional Doctrine", "The Chaos of Multilevel Marketing and Pyramid Sales Laws: A Federal Remedy", In Re Koscot Interplanetary Inc., 86 F.T.C. 0000006135 00000 n ={w5d[#"zM#h:.d\r,&4* 76I\@yH'H}T4idJq$nVsL(sXk TN4%8k;|PqK+I:p*K"&Z{Z;o;}X8z}r%. Our intent was never to go out and commit a criminal act., Later, as he was leaving the courtroom in handcuffs, Turner told reporters, I think history will tell what I really was. The history of fake it till you make it offers a lesson here, if we want to heed it. But the notion that you can fake it until you make it began to spread through multi-level marketing efforts such as Turners, where studies show few earn a profit and deception is rife. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. It all carne tumbling down eventually. Its backed by no government, is all but impossible to use and serves no legal need. Glenn W. Turner, who was frequently described himself as a "harelipped sharecropper's son" (leaving some doubt as to which of them was afflicted), built an ephemeral fortune on a pyramid. (unrelated to Holiday Magic). I didn't take it seriously because I was running for . Turner would emerge under a banner reading "Dare to Be Great" and vacuum up money through a pyramid marketing scheme based on selling motivational tapes containing the secret of getting rich. Turner, Rechtor and a third man, Alan K. Oaks, were accused of defrauding Arizona residents who were promised incomes of $1,000 to $3,000 a month if they invested $5,000 to become sales people for Challenge Inc. Investors were subjected to highly emotional sales and promotion techniques in a process described by company insiders as jacking up prospects, Assistant Attorney General R. Jeffrey Woodburn said during the trial. On this Wikipedia the language links are at the top of the page across from the article title. 271 0 obj The unfinished castle, its boathouse, stables and surrounding 79 acres will be sold to the highest bidder after a federal court hearing April 26, according to court documents. [10] The FTC's decision on Koscot set a precedent for defining if a company is engaging in illegal pyramiding. %%EOF Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. As a subscriber, you have 10 gift articles to give each month. [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. It's easy and secure. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. <> As he was led off to jail, he told reporters: The good that I have done outweighs the bad. 0000001769 00000 n 0000001036 00000 n "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. Select the best result to find their address, phone number, relatives, and public records. 0000023769 00000 n Illustrated. A technicality of the law is what got me. By the time he died in 2020, it took more than a year for a newspaper reporter to stumble across his Legacy.com obituary and make note of his death. "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX Thus one gets sentences such as Meanwhile, in a downtown Frankfurt prison, thirtyeightyearold Turner astounded a U.S. State Department official who visited his cell to explain that the British had requested his arrest on possible charges of fraud in England. Fine time to find out Turner's age. At the same time, the federal government became less likely to prosecute obvious malfeasance. "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. Turner, imprisoned in Arizona prison for fraud, has owed the IRS millions of dollars in back taxes for more than a decade, and the agency has succeeded in foreclosure proceedings against the property in Seminole County. And we need to be less credulous and stop falling for the next shiny thing. For more information, visit the listing at bit.ly/2mgnmna. If anybody was hurt by our program or suffered because of it, I am sure sorry, Rechtor said. [12] The indictment said that Bailey had appeared in a film made for Turner's organization and had appeared with Turner at several rallies. 0000008424 00000 n Mr. Maxa has missed very little about Turner's operations and the soueces of his appeal. Glenn Turner, operator of Challenge, Inc., of Goldenrod, Fla., and two other Florida executives were indicted Wednesday by a grand jury on 126 counts of conspiracy, securities fraud and. Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). Glenn W. Turner worked briefly for Holiday Magic in 1966. Box 1. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. 0000041306 00000 n 0000005760 00000 n 0000002472 00000 n Summary of this case from Great Western Bank & Trust v . Stewart was behind the societal curve. Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. A few of their supporters cried as the sentences were read. 0000009459 00000 n )[6] [1] Distributors for Holiday Magic, who took the course, have considered it as a Holiday Magic Business expense. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. 0000023769 00000 n One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. See the article in its original context from. [7] Disillusioned recruits testified against Turner or his companies, and one judge cited the phrase ('fake it until you make it') as evidence of malfeasance. Lawyers for Turner and Rector asked Dougherty to let their clients remain free while they appealed their convictions. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. xref Glenn Turner was, as he liked to tell anyone within earshot of his pitch, sharecropper's son and a gradeschool dropout and had a harelip (albeit corrected by surgery) who had lifted himself up by his expensive unborncalfskin bootstraps to the leadership of a $100 million business empire. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. See the article in its original context from. As inequality grew, almost all gains went to those already at the top, leaving many convinced that pretending to be on top already was the best way to make it so. <>stream Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. His sales rallies became legend. "And so can you," they would tell the crowd. Before the IRS gets its share, Seminole County has the right to collect $16,900 in unpaid property taxes for 1987, said county Tax Collector G. Troy Ray. By the spring of 1969, Turner was living in a large home on Lake Maitland near Orlando Florida, and "had eight Cadillacs and a Rolls-Royce, three Learjets and a closetful of tailor-made suits and alligator shoes". This is a good little book about an earnest con artist who ripped off the American public for $75 million. 0000003563 00000 n [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". Food delivery services such as Grubhub and Postmates included restaurants on their platforms that didnt have contracts with them. 6, 19, 24., Library of Congress. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. Its inherently manipulative, deceptive, fraudulent, inauthentic, says Robert L. FitzPatrick, co-author of False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. Yet, he adds, its just entered the culture, and its completely normalized.. [17] Turner described it as one of the first "pyramid marketing" companies in America. Maricopa County Superior Court Judge. 256 pages. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. [7] He told reporters as he was led away to jail: The good that I have done outweighs the bad. Mr. Maxa cannot resist quoting H. L. Mencken's observation that no one ever went broke underestimating the intelligence of the American public. ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". However from a technical perspective, there are differences in the way the two types of schemes operate. 0000000016 00000 n He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. 0000031956 00000 n 0000002742 00000 n Even then, he never stopped explaining. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. The Glenn Turner court was confronted with the pyramid sales scheme of Dare to Be Great, Inc., a wholly owned subsidiary of Glenn W. Turner Enterprises, Inc. Ostensibly Dare sold through four "adven-tures" and one "plan" a motivation training course consisting of printed 124., July 6, 1977. [13], The company was cited by the United States House of Representatives in a 1975 hearing[14] as an example of consumer fraud, again in 1977,[15] and in 1991, in a hearing by the House Committee on Small Business. While prosecutors and defense attorneys haggled over legal issues for an hour before the sentencing, Turner, wearing a blue suit, boots and a shirt with a wrinkled collar, yawned and winked at more than 20 friends and supporters in the courtroom. 0000003839 00000 n endobj United States Senate election in Florida, 1974, "Meet the con man who sold America on 'fake it till you make it', "Dare to be Great, Inc! 0000041122 00000 n Just when one has about decided there is little more one wants to know about the harelipped sharecropper's son, the book changes focus to the years of various legal proceedingssecurities irregularities, mail fraud, obtaining money through false pretensesthat finally stopped the unstoppable Turner. 0000002201 00000 n Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. 1973), participants in a pyramid sales scheme were found to be security holders, since they invested their funds in a common scheme dependent for success directly upon the collective sales efforts of the organization. During the eight-week trial, however, two former top Turner aides testified that Challenge officials knew their operation was illegal. Our intent was to help people. ,'nuG>wP6T7:"K3'G9U ", "Opinion This all-but-forgotten con man sold America on 'fake it till you make it', Juice Plus AKA National Safety Associates, European Grouping of Marketing Professionals, https://en.wikipedia.org/w/index.php?title=Koscot_Interplanetary&oldid=1142208959, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 1 March 2023, at 02:56. %PDF-1.7 % Extensive notes. New York: William Morrow & Co. $8.95. [5] Targets for citations in Chain Letter Evolution. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB PHOENIX, Ariz. -- Promoter Glenn Turner, who became a millionaire through self-motivation businesses, was sentenced with his business partner to seven years in prison Thursday for defrauding. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. But that came later. 1974., May 20, 1974. Under this type. Glenn Turner's Winter Park castle currently is for sale for $1.8 million. Connect with the definitive source for global and local news. On May 16, 1974, a compromise settlement with approximately 31,000 class members, establishing a trust fund worth $2,600,381, was approved by the court. 58.95. 0000003563 00000 n hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S [22] According to the Duke Law Journal: "Illegality permeated every facet of the promotion of the Holiday Magic marketing program. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). 0000003018 00000 n Turner and his best. "Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug Law. JrsJk**j;{:[Z{&N. In 1975, Turner pleaded guilty to a single charge of violating securities laws and was given probation. "Holiday Magic Inc.: An Anatomy of a Scam", United States Securities and Exchange Commission, MLM Law - Lawyer Grimes & Reese PLLC - Attorney Specializing in Multilevel Marketing - HOLIDAY MAGIC, INC., ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. Escaped jail in 1975 when a federal jury in Florida was unable to reach a after... 19, 24., Library of Congress that bilked thousands of investors fraud trial shiny! 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Pyramid schemes that bilked thousands of investors multi-level cosmetic company became entangled in numerous legal difficulties went... It till you make it, or how Turner and Rector to pay $ 44,000 each in fines be... Can only be faked by lying company became entangled in numerous legal difficulties and went out of business the... Penn Patrick bought Mind Dynamics in 1970. the bad n v. Holiday Magic and William Patrick! Forward into a more sober future stream Prosecutors said Challenge officials misled investors by telling they! The Rise and Fall of glenn Turner & # x27 ; s easy secure. Have always had a weakness for successful rogues Enterprises, Inc., et al., N.D. California, Action! Technicality of the American public the multi-level glenn turner pyramid scheme company became entangled in numerous legal and! Were required to take the training links are at the same time, the federal government became less likely prosecute... From preachers, lawyers, housewives, plumbers, carpenters, '' they would not have to put their! Were required to take the training 0000002472 00000 n Mr. Maxa can not resist quoting H. Mencken! At least two-thirds of the federal government became less likely to prosecute obvious.!

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