[6], In February 1973, Holiday Magic was sued for calumny by Avon Products. <> )[6] Mr. Turner and Mr. Rechtor, who also received seven years, were. : 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. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. 124., July 6, 1977. 6, 19, 24., Library of Congress. Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. Ward, et al. A lot of books have been written about Mr. Turner and today weve put the final period in the final chapter of the saga of Glenn Turner, Lotstein said. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. The companies collapsed in 1973 under lawsuits filed by investors and investigations by state and federal agencies. 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. v. Robert W. Warren et al. 0000043655 00000 n Anyone can read what you share. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. United States House of Representatives. Extensive notes. 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. 0000007360 00000 n [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. Dougherty also ordered Turner and Rector to pay $44,000 each in fines to be distributed to victims. ORLANDO, Fla. (AP) _ A three-story, 16-room castle owned by onetime motivational entrepreneur Glenn Turner is going on the auction block, with the Internal Revenue Service and other creditors splitting the proceeds. C-74-1067-LHB., No. 0 It is here that Mr. Maxa shows unusual ability to compress tedious and protracted legal wrangles (one trial lasted nine months) into an absorbing account. what would happen when these distributorships reached the saturation point, when there was no one left to buy a distributorship, and so many people selling cosmetics that it was impossible to recover the large investment from the small cosmetics commissions? No surprise, trust is cratering. Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. Marjoe knew, Clifford Irving knew, but Mr. Maxa, who doesn't seem to be just anybody's fool, honestly believes that Turner honestly believed that he was honest. For more information, visit the listing at bit.ly/2mgnmna. L|B@9`CwX}LKC Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. 0000004119 00000 n Koscot Interplanetary was a company from Orlando, Florida, selling mink oil-based cosmetics and was started by Glenn W. Turner in 1967. 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. The state officer who conducted Turner's investigation noted, "Mr. Turner has demonstrated to this officer an uncanny ability to confuse issues and extend compliments.". 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. Just before sentencing, Rector told Dougherty that Challenge had done nothing wrong. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . [7] He told reporters as he was led away to jail: The good that I have done outweighs the bad. The book has its lighter moments. Eventually, the truth comes out. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. <>stream The Challenge program was similar to Turners Dare to be Great program, which won him national attention during the late 1960s and early 1970s, the state attorney generals office said. mid plans has focused on a single organization, Glenn W. Turner Enter-prises, Inc., a holding company with 68 subsidiaries3 including the two most successful and most maligned pyramid schemes, DG and its sister company Koscot Interplanetary, Inc. 0000000016 00000 n startxref But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. 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. ", United States Congress. PHOENIX, Ariz. (AP) _ The founder of the Dare to be Great motivational program was sentenced Thursday to seven years in prison for using an illegal pyramid scheme to bilk people out of thousands of dollars. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. Rector said the men -- Douglas Beekman of Apopka and Richard Mailman of Altamonte Springs -- never voiced such a concern to him. But when the claim has little to no basis in reality, it will almost certainly lead to failure and, as Turner discovered, to oblivion. As Mr, Maxa notes, Americans have always had a weakness for successful rogues. %PDF-1.7 % See the article in its original context from. But Dougherty denied bond and ordered both men to begin serving their sentences immediately. Connect with the definitive source for global and local news. 0000001769 00000 n But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. 0000000016 00000 n 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 "[1], Sales Dynamics was another program of instruction for pay available to Holiday Magic Distributors to help them in their business activities. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. 0000031956 00000 n See the article in its original context from. It is a story that will finally end Thursday in Phoenix, Arizona, where Turner, who turns 53 on Wednesday, faces a potentially long prison sentence for the fraud convictions last month that. [28], CEO and President Roland R. Nocera pleaded guilty to securities fraud, in the case United States v. Nocera, et al. . 0000005276 00000 n [1] It became entangled in numerous legal difficulties and went out of business in the 1970s.[2]. We are forever suspicious, convinced someone else wants to profit at our expense. 0000043655 00000 n To preserve these articles as they originally appeared, The Times does not alter, edit or update them. Investment of $5,000. [30] In popular culture [ edit] . 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. The House was supposed to grow with population. One report has him convicted of running a pyramid scheme in Arizona in 1985 and released after five years in prison. 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. DARE TO BE GREAT. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. New York: William Morrow & Co. $8.95. xref 0000005760 00000 n [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. [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". I have remorse for these people that did not benefit by what we set out to do. The distributors could make thousands. Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. 0000009459 00000 n [17] Turner described it as one of the first "pyramid marketing" companies in America. Patrick bought all of the cosmetics supplies for $16,250, and founded Holiday Magic, Inc. After the purchase, Patrick began selling distributorships in his new company. 58.95. . 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. Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. 0000003839 00000 n The con artist became a business model, says Micki McGee, author of Self-Help, Inc. Its only in a market-worshiping economy that you can say defrauding people in the interest of profit would somehow be okay.. As far as Ive been able to discover, these are among the first times that this now commonplace phrase received prominent mention in the media. In 1964, after a bankruptcy and several business failures, Patrick (age 33) was walking by a garage in San Rafael, California, and noted that fruit-scented cosmetics were being sold. 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. The IRS, which had a $15 million claim, has been awarded a judgment of $9.275 million, but appraisals put the value of the Turner property at $1 million to $2 million. "If anyone was hurt in our program, I am extremely sorry. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. /b+;*R2VL5 WC^ ;_>[AM "su`/d_w$3qhTGS;#m!bytBefF~s*GB9z\eBUK,nrEYXn u.$leJrk5@ [5], The State of California filed suit against Holiday Magic in December, 1972. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. Abe F. March held several executive positions for Holiday Magic and parent company U.S. Universal; Regional Vice President, Canada (19711972), Vice President, Greece (19721973) and Managing Director for Sta-Power, Germany (1973). 11106 (1975). It is apparent from this Court's findings of fact that the defendants are promoting a type of scheme commonly known as a pyramid operation. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. As a subscriber, you have 10 gift articles to give each month. He first pushed cosmetics and later a motivation course called Dare to Be Great. [1], Pyramid schemes being illegal, Koscot became involved in substantial litigation from government agencies and Koscot's customers. As it turned out, investors would have to pay $5,000 apiece to participate in the program, which revolved around distributorships for sales of motivational cassettes, classes and books. [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. Turner, though, had hired a lawyer for his sentencing Thursday. ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". [4], Patrick, a student of Alexander Everett (founder of Mind Dynamics), used Mind Dynamics techniques as well as the Silva Method in the Holiday Magic organization. 0000005276 00000 n the Glenn Turner modification is a good one. Glenn Turner's Winter Park castle currently is for sale for $1.8 million. 0000041306 00000 n 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. Glenn W Turner, who started in Network Marketing in the late 60s and you will be blown away by the income earnings that he shares from that time. The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. 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. House Committee on Small Business, 1991. The empire collapsed in the early 1970s when authorities accused Turner of violating laws against pyramid sales, in which investors at the top make a fortune and those who get in later lose money. Glenn W. Turner worked briefly for Holiday Magic in 1966. that our program was a crime," he said. Glenn W. Turner worked briefly for Holiday Magic in 1966. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. The company had been investigated by the Market Court of Sweden,[3] United States Securities and Exchange Commission, the Federal Trade Commission, and the State of California. By the time one arrives at the scene with the Washington lawyers who helped keep Dita Beard under wraps and the description of an old O.S.S. Psychiatrist Alfred Adler, writing in the early 20th century, argued people could change habits by embracing an act as if strategy: assume a behavior and, eventually, it will become real. 0000001769 00000 n 0000001660 00000 n Warren., 497 F.2d 687., C.A.Wis. . The good that I have done outweighs the bad. 0000003018 00000 n 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. torture involving a mouse that was supposed to eat a recalcitrant witness's heart (Good Lord! [11] 1974 hearings before the Congressional Oversight panel of the Federal Trade Commission described Holiday Magic as a "Multi-level marketer of cosmetics", that used an "unfair and deceptive pyramid distribution scheme". "All you have to do is believe it."[7]. "It is hard for me to believe . 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.. ), it's too late to put the book down. One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. 0000004278 00000 n 256 pages. But nowhere has the ethos of fake it found more fertile soil than in Silicon Valley, where the line between optimism and deceit can admittedly be a fine one. Select the best result to find their address, phone number, relatives, and public records. 0000005760 00000 n 0000004278 00000 n [9] The FTC found that Holiday Magic was in violation of section 5 of the Federal Trade Commission Act, and section 2 (a) of the Clayton Antitrust Act. In SEC v. Glenn W. Turner Enterprises, Inc., 474 F.2d 476, 482 (9th Cir. NEWS RELEASE SUMMARYSeptember 1, 2021. Dougherty said he had received "hundreds" of letters in support of Turner. 0 Holiday Magic Inc. et al. 0000006135 00000 n Turner pleaded guilty to a misdemeanor fraud charge in return for a probation sentence. Lets fix that. 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. One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. 0000001791 00000 n United States District Court, D. Oregon. Charges were then dropped against Bailey. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. 0000006933 00000 n Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. Koscot was founded in 1967. "And so can you," they would tell the crowd. 0000006135 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. A few months later, another seller would tell a Florida courtroom that he, too, had been instructed to fake it till you make it. When the Securities and Exchange Commission filed a complaint against Turners company, a judge cited the phrase as evidence of malfeasance. 0000041306 00000 n [7] As one news story put it: .mw-parser-output .templatequote{overflow:hidden;margin:1em 0;padding:0 40px}.mw-parser-output .templatequote .templatequotecite{line-height:1.5em;text-align:left;padding-left:1.6em;margin-top:0}, Think about it: One person could sell 10 distributorships, and each of the 10 could sell 10 more, and so on. 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. We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. [25] The Office of the State Attorney General in Maine, United States cites In re Holiday Magic, Inc., 84 F.T.C. Mencken, Mr. Maxa says, would have loved Glenn Turner as one of those colorful rogues who enliven the American scene, a sort of cross between Elmer Gantry and Charles Ponzi, whose name is to financial pyramids what Tutankhamen's is to the original. Private investors also have claims against the property for $200,000 in tax certificates, under which they paid the taxes and earn 18 percent interest until the property is sold and the tax amounts are paid back to them.. Turner and his family havent paid property taxes since 1979, but investors bought tax certificates equal to the back taxes each year. 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. Even as she spoke, the housing bubble riven with fraud committed (and invited) by banks, ratings agencies, mortgage brokers and appraisers was growing bigger. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. 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. 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