If anybody was hurt by our program or suffered because of it, I am sure sorry, Rechtor said. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. It didnt. https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. When newly minted salespeople found it impossible to make a go of it, they were told to fake it until you make it, by wearing expensive clothes and waving around $100 bills to lure in others, a disillusioned Oregon recruit testified in court in 1972. <> 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. [3], In 1973, Holiday Magic's proceedings were prohibited by the Market Court of Sweden, and a fine of 2 million Swedish kronor was imposed. Eventually, the truth comes out. [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. 0000009459 00000 n Turner was a former sewing machine salesman and son of a South Carolina sharecropper and an unwed mother, born with a cleft palate and a hair lip, who dropped out in the eighth grade, did a short stint in the U.S. Air Force before successfully finishing a school for those who had dropped out of high school. 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. ", United States Congress. 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. 0000008799 00000 n Although Turner was never convicted of a criminal charge, he received probation in a mailfraud case after arranging with the prosecution to plead no contest to a lesser charge. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. [5] Though he claimed Leadership Dynamics was a separate company, "..in no way related to Holiday Magic, Inc.", Gene Church pointed out many inconsistencies in this statement, in his book The Pit: A Group Encounter Defiled. 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. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. (Javice has denied the banks claims.) We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. 0000002201 00000 n He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. New York: William Morrow & Co. $8.95. Koscot Interplanetary. It all carne tumbling down eventually. Wk. Turner, who was pale and appeared tired, and Rector, his former bodyguard, had no visible reaction to the sentences. Our intent was to help people. Morrow. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses.[30]. "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. [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. United States District Court, D. Oregon. 0000009459 00000 n Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). What a fine madness it was, the heyday of Dare to Be Great. 748 as an example of pyramid schemes. 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". 0000001660 00000 n 0000007360 00000 n 5616. 0000010114 00000 n But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. Some of the most famous pyramid schemes in U.S. history. Glenn W. Turner, 53, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty, who said he had received scores of letters on behalf of the two Goldenrod, Fla., men. Its backed by no government, is all but impossible to use and serves no legal need. [12] The indictment said that Bailey had appeared in a film made for Turner's organization and had appeared with Turner at several rallies. ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . We are forever suspicious, convinced someone else wants to profit at our expense. Even then, he never stopped explaining. torture involving a mouse that was supposed to eat a recalcitrant witness's heart (Good Lord! The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses. [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. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. 0000001660 00000 n [3] An estimated 70 companies (as of 1972)[4] were owned by Turner (owned by Glenn W. Turner Enterprises, Inc.):[1] Dare to Be Great, which sold motivational and self-improvement courses, and also functioned as a multi-level marketing company;[5] Turner had also briefly worked for Holiday Magic, another multi-level marketing company that sold home-care products and cosmetics, and through related companies sold self-improvement programs. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. 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. 0000003563 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. 0000004278 00000 n 0000032500 00000 n Cryptocurrency arrived, basically a fake it till you make it form of money. IT WOULD BE impossible to write a book about the sales empire of Glenn Turner without invoking H. L. Mencken's familiar remark that no one ever went broke underestimating the intelligence of the American people. "It is hard for me to believe . 0000001791 00000 n GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. They would peddle mink oil makeup and his Dare to Be Great motivational tapes, and collect more money by recruiting others and taking a percentage on their sales. This page was last edited on 18 February 2023, at 23:43. See the article in its original context from. Glenn W. Turner is now all but forgotten. 0000001036 00000 n NEWS RELEASE SUMMARYSeptember 1, 2021. )[6] 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. They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. 164 0 obj <>stream 0000002472 00000 n PHOENIX, ARIZ. Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. I have remorse for these people that did not benefit by what we set out to do. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. A list of over 350 print sources on paper chain letters and pyramid schemes. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. 235 0 obj 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. "If anyone was hurt in our program, I am extremely sorry. Yes, the ethos can lead to success, as long as you actually have the goods and the skills. [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. %%EOF Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker. Oaks pleaded guilty last year to one felony count of operating an illegal pyramid scheme and agreed to testify against Turner and Rechtor. It's easy and secure. 58.95. 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. 0000003839 00000 n Targets for citations in Chain Letter Evolution. 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. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB 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. But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. <> Lotstein said the men must serve at least two-thirds of the sentence, more than 4 1/2 years, before they are eligible for parole. Committee on Banking, Housing and Urban Affairs. As a subscriber, you have 10 gift articles to give each month. Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S 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. [30] In popular culture [ edit] 124., July 6, 1977. The judge refused and the men were led away to jail by deputy sheriffs after they gave their wallets, watches and jewelry to friends in the courtroom. Even as Turner attracted increasingly negative attention in 1972, he was arrested on 86 counts of violating securities laws the phrase gained popularity in a more earnest context within Alcoholics Anonymous. 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. 11106 (1975). 0000032500 00000 n But when the claim has little to no basis in reality, it will almost certainly lead to failure and, as Turner discovered, to oblivion. Turner and his best. 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. And we need to be less credulous and stop falling for the next shiny thing. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. He was featured in an 11-page article in Life magazine in 1971,[8] and was reportedly worth $300 million at the time. According to a presentence investigation, Turner, who has been living in North Carolina, is broke and has no assets or income. 0000004119 00000 n 0000002472 00000 n We dont trust the government, media or big business. 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". endstream endobj 166 0 obj <>stream 0000002201 00000 n But that came later. Glenn W. Turner worked briefly for Holiday Magic in 1966. "[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. Two dwarfs would hop out and unroll a red carpet. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. A few of their supporters cried as the sentences were read. As a subscriber, you have 10 gift articles to give each month. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. 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. 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. 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. : 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. 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. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. 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. Koscot was founded in 1967. 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 The book has its lighter moments. Originally the organization distributed goods such as home-care products and cosmetics. We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. trailer 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? Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. 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. 0000000016 00000 n 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). Participants could pay $2,000 to be a supervisor or $5,400 to be a director. That spirit is everywhere. 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. Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. Pyramid schemes are inherently unstable and eventually must collapse. Turner, the son of a sharecropper, told people they could all be rich and successful like him if, that is, they made an investment in his multi-level marketing company. Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. they indicted me on aiding and abetting running a pyramid scheme. "[1], Sales Dynamics was another program of instruction for pay available to Holiday Magic Distributors to help them in their business activities. 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. [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. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. [19] Tobias poked fun at the pyramid nature of the organization, in his book The Only Investment Guide You'll Ever Need, telling readers to be wary of "..Holiday Magic - where the big money to be made was not in selling cosmetics, but in selling franchises to sell franchises (to sell franchises).."[20] Howe wrote in the San Francisco Chronicle that Holiday Magic was "..one of the largest of all pyramid schemes.."[21], Holiday Magic is used as an example in graduate level criminal justice coursework to analyze the nature of corporate scams. Cylindrical tower that contains a stairwell on the inside the premise of Koscot was that participants could pay $ to., lost his freedom Thursday distributed goods such as home-care products and cosmetics glenn turner pyramid scheme who pleaded guilty one. Corporation, et al., Defendants and secure dont trust the government, media or big.. 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