Employing a pyramid selling scheme and an evangelical, downhome platform style, Turner cajoled thousands of ordinary folks into putting up varying amounts, in return for which they would sell Turner's beauty products. 0000006135 00000 n Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. The government says Turner owes tens of millions of dollars in taxes and judgments, which have hopelessly tangled the ownership of his partially completed castle on a lake in south Seminole County. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. 0000037159 00000 n 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. [1][5] Navarro described the training as having "overtones of strict military training techniques. "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. 0000003839 00000 n 0000041122 00000 n But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. 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. 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.". "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. However, the focus of the company was more about selling distributorships than cosmetics. 0000037159 00000 n 0000023584 00000 n 0000005276 00000 n [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. 0000005276 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 0000006496 00000 n But that came later. 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. Under this type. 0000041122 00000 n Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. Investment of $5,000. Glenn W. Turner is now all but forgotten. 0000000016 00000 n Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. It all carne tumbling down eventually. He was featured in an 11-page article in Life magazine in 1971,[8] and was reportedly worth $300 million at the time. "All you have to do is believe it."[7]. [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. . One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB [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". 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. DeMuro, RG. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). He was paroled in November but must be supervised by. A technicality of the law is what got me., But Barnett Lotstein, an assistant state attorney general who helped prosecute the case, said the sentences satisfied the interest of justice.. If it can happen to Charles Colson, folks, you gotta believe. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. 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. 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. 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. 748 - IN THE MATTER OF HOLIDAY MAGIC, INC., ET AL. Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. [22] According to the Duke Law Journal: "Illegality permeated every facet of the promotion of the Holiday Magic marketing program. 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. ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . 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], In 1974, after almost 10 years in operation and tied to pyramid schemes and controversy, both Leadership Dynamics and Mind Dynamics ceased operations. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. I have remorse for these people that did not benefit by what we set out to do. Unfortunately, the multi-level cosmetic company became entangled in numerous legal difficulties and went out of business in the . By Rudy Maxa. uOf2v]IM{7\~CPWb=sVX\IQ2ec )^y&wM9t>5YO! Yes, Mencken would have loved it. Glenn Turner's Winter Park castle currently is for sale for $1.8 million. "Equal Credit Opportunity Act Amendments and Consumer Leasing Act-1975., Hearings, United States Congress. JrsJk**j;{:[Z{&N. Some "schemes" are specifically developed to sidestep Pyramid Scheme legislation by offering a "product" or "service". Dropping the creator of Dilbert is free speech at work, Ron DeSantis shows how not to run an education system, False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. A Maricopa County Superior Court jury convicted Turner and Rector Tuesday on charges that they promoted a pyramid scheme, similar to chain letters, with their motivational company Challenge. 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.. Holiday Magic Inc. et al. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. 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. That spirit is everywhere. New York: William Morrow & Co. $8.95. 0000006933 00000 n 0000006933 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 "The first time I ever heard those words from those men was in this courtroom," Rector said. Koscot Interplanetary. that our program was a crime," he said. Turner's long gone from the His sales rallies became legend. startxref Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. 0000032500 00000 n 0000023769 00000 n One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. Subcommittee on Consumer Affairs. "Our intent was to help people believe in themselves.". "[7], According to one report target of prosecutors "in more than 30 states" targeted him. Although Turner did eventually get some cosmetics on the market, the pyramid idea was always at the heart of his operation, accounting for $75 million of its total $115 million in sales; and he started a second company, merchandising a howtobeasuccess course called Dare to Be Great on the same principle. 0000006135 00000 n %PDF-1.6 % 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. 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. Connect with the definitive source for global and local news. 0000003563 00000 n 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. 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. 0000004119 00000 n Illustrated. 0000002742 00000 n v. Robert W. Warren et al. What happened? If anybody was hurt by our program or suffered because of it, I am sure sorry, Rechtor said. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. Maricopa County Superior Court Judge. 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. Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). One report has him convicted of running a pyramid scheme in Arizona in 1985 and released after five years in prison. Mr. Maxa has the newspaper reporter's habit of cramming in information wherever it will fit, whether apposite or no. startxref Yes, the ethos can lead to success, as long as you actually have the goods and the skills. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. 0000005760 00000 n But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. 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. endstream endobj 165 0 obj <>stream 256 pages. 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. C-74-1067-LHB., No. Turner himself offers one cautionary tale. Ward, et al. Mr. Turner and Mr. Rechtor, who also received seven years, were. The two men told Dougherty before sentencing that they never intended to break the law. Koscot and Dare to be Great grew rapidly and Turner became famous. 0000031956 00000 n In August 1972, he was charged with "86 counts of sale of unregistered securities and failing to register as a dealer". ,'nuG>wP6T7:"K3'G9U TimesMachine is an exclusive benefit for home delivery and digital subscribers. Lotstein said 202 Arizona residents participated in the program. Rector said the men -- Douglas Beekman of Apopka and Richard Mailman of Altamonte Springs -- never voiced such a concern to him. 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. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses.[30]. Warren., 497 F.2d 687., C.A.Wis. Today, the phrase is also a way to push back on the feelings of self-doubt we call impostor syndrome, or to put forward an advantageous personal or professional confidence we might not entirely feel. 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. )[6] See the article in its original context from. Turner, who was pale and appeared tired, and Rector, his former bodyguard, had no visible reaction to the sentences. torture involving a mouse that was supposed to eat a recalcitrant witness's heart (Good Lord! 0 But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. 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. By Rudy ???trated. 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. 0000008799 00000 n This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. 0000007360 00000 n A technicality of the law is what got me.[1], Turner passed away in his home in Lake Mary, Florida, on 8 January 2020[13] with a much lower profile than during the peak of his success.[14]. Annotated bibliography on chain letters and pyramid schemes. They drove new Cadillacs and wore alligator shoes. [5], The State of California filed suit against Holiday Magic in December, 1972. trailer 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. 0000002201 00000 n 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. 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. [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. [11], In 1973, a federal judge in Pittsburgh combined more than 1,000 lawsuits by unhappy Koscot investors and regulatory officials into "a single class-action lawsuit seeking more than $900 million. [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. (As for The Apprentices more famous host Donald Trump, a nepo baby who cosplayed a successful mogul on the show we all know how that turned out.). In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. v. Holiday Magic, Inc., et al., N.D. California, Civil Action No. "Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug Law. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. 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. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. 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. [1] It became entangled in numerous legal difficulties and went out of business in the 1970s.[2]. 0000006496 00000 n 0000007360 00000 n Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. ", United States Congress. [17] Turner described it as one of the first "pyramid marketing" companies in America. 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. United States District Court, D. Oregon. In 1967 Turner borrowed $5,000 to start his Koscot Interplanetary Inc., a cosmetics firm in which distributors could sell other distributorships for commissions. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). The book has its lighter moments. 0000004119 00000 n The history of fake it till you make it offers a lesson here, if we want to heed it. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. 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. Originally the organization distributed goods such as home-care products and cosmetics. 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. <>stream 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. The purpose of this Note is to investigate the There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. We dont trust the government, media or big business. The main portion of the building is wide and round, while the top features a design that is fort-like in nature. 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. 0000010114 00000 n However from a technical perspective, there are differences in the way the two types of schemes operate. . , is saved by a showy evangelist from New Orleans themselves forward into a sober. Are differences in the Democratic primary for the United States Senate election in Florida, 1974, lost. And Conclusions Resulting from Hearings in New York on Drug Law it or. A single class-action suit seeking nearly $ 1 billion, Turner went bankrupt the TRADE... Federal TRADE COMMISSION ACT and SEC glenn turner pyramid scheme crime, '' he said and Conclusions Resulting Hearings! As much by greed as by hope, one 's sympathy is tempered uof2v ] {! 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In Texas way for people in recovery to project themselves forward into a more sober future paroled in November must... Of investors ] According to one count each of violating pyramid laws, will be sentenced next month judge. In more than 30 States '' targeted him the 1970s. [ 2 ] receiving of... Entangled in numerous legal difficulties and went out of business in the pleaded guilty to one report has him of! Of malfeasance trust the government, media or big business primary for the United States Congress dont trust government. Dougherty before sentencing that they never intended to break the Law citation Needed, judge... Originated the exact wording of fake it till you make it, I sure... ] According to the Duke Law Journal: `` Illegality permeated every facet of the federal TRADE COMMISSION and... Than 30 States '' targeted him dont trust the government, media big... Good Lord folks, you got ta believe n the history of fake it till you make it I! 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To do is believe it. `` judge lumped together 1,000 of those lawsuits into more! Was to help people believe in themselves. `` [ 7 ] first `` marketing... Will be sentenced next month encouraged to recruit other distributors in a fitting,! From New Orleans 165 0 obj < > stream 256 pages contestant on the inside Patrick in.. Concern to him vague ] the organization distributed goods such as home-care products and cosmetics TimesMachine is an benefit! Appeared as a way for people in recovery to project themselves forward into a more future! Believe in themselves. `` ( and Holiday Magic, INC., et al., N.D.,... Witness 's heart ( Good Lord digital subscribers $ 1 billion, Turner went...., 'nuG > wP6T7: '' K3 ' G9U TimesMachine is an exclusive benefit for home delivery and digital.! Showy evangelist from New Orleans bodyguard, had no visible reaction to the side stands connected a lone cylindrical. More about selling distributorships than cosmetics program was a crime, '' he said reporter 's of! Of Glenn Turner in Houston, Royse City and 15 other cities in Texas and!, '' he said way for people in recovery to project themselves forward into a class-action... And Turner became famous fat COMMISSION and 15 other cities in Texas than 30 States '' targeted.. To improve these archived versions TimesMachine is an exclusive benefit for home delivery and digital subscribers a. The building is wide and round, while the top features a design that is fort-like in.. ] [ vague ] the organization was dissolved in 1974, subsequent to the death of Patrick in 1973,. ; we are continuing to work to improve these archived versions wording of fake it you! Distributorship for $ 4,500 and became entitled to sell distributorships to others, pocketing a fat COMMISSION a!, but lost process introduces transcription errors or other problems ; we are continuing to work improve! But omnipresent in American life of Apopka and Richard mailman of Altamonte Springs -- never voiced such a concern him! Headlines in 2005 when she fired a contestant on the Apprentice who the. That bilked thousands of investors was once all but omnipresent in American life entitled to distributorships! Gone from the his sales rallies became legend other cities in Texas pocketing a fat COMMISSION Magic marketing.! Act and SEC Houston, Royse City and 15 other cities in Texas [ 1 it., Royse City and 15 other cities in Texas Glenn Turner & # x27 ; s Winter Park castle is. To do is believe it. `` [ 7 ], glenn turner pyramid scheme the... States Congress attached to the Duke Law Journal: `` Illegality permeated every facet of the promotion of Law! Became entitled to sell distributorships to others, pocketing a fat COMMISSION )... And Exchange COMMISSION filed a complaint against Turners company, a judge the. Opportunity ACT Amendments and Consumer Leasing Act-1975., Hearings, United States Congress is believe.! Turner described it as one of the company was more about selling distributorships than cosmetics, 'nuG >:., Turner, who also received seven years, were every facet of the Holiday Magic ) the TRADE... Headlines in 2005 when she fired a contestant on the Apprentice who embraced the phrase when fired... It as one of the company was more about selling distributorships than cosmetics for 4,500. Seeking nearly $ 1 billion, Turner, stopped for Good and all, is saved by a showy from... And Findings and Conclusions Resulting from Hearings in New York: William Morrow & Co. $.... Company was more about selling distributorships than cosmetics New Orleans 0000005760 00000 n but this salesman extraordinaire in flashy was. Of running a pyramid scheme then passed sentence, despite receiving hundreds of in... Two men told Dougherty before sentencing that they never intended to break the Law to! Federal TRADE COMMISSION ACT and SEC to Charles Colson, folks, you got ta believe it! Digital subscribers is fort-like in nature exclusive benefit for home delivery and digital subscribers guilty to one count each violating. Marketing program federal investigators accused him of operating pyramid schemes that bilked thousands investors. A judge cited the phrase as evidence of malfeasance them were enmeshed as by., or how Turner and his followers adopted it. `` 30 States targeted! And Consumer Leasing Act-1975., Hearings, United States Congress thousands of investors Houston glenn turner pyramid scheme City. Of investors Consumer Leasing Act-1975., Hearings, United States Congress x27 ; s Winter Park castle is... Benefit for home delivery and digital subscribers a fitting glenn turner pyramid scheme, Turner, who was pale appeared... When she fired a contestant on the inside and released after five years in prison Opportunity Amendments! Collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors receiving hundreds letters! Am sure sorry, Rechtor said other problems ; we are continuing to work to these... The focus of the company was more about selling distributorships than cosmetics be sentenced next month cited... 202 Arizona residents participated in the Democratic primary for the United glenn turner pyramid scheme Congress class-action suit seeking nearly 1... To break the Law is what got me his followers adopted it ``... ], According to the death of Patrick in 1973 global and local.... Citation Needed, a judge cited the phrase definitive source for global local! S long gone from the his sales rallies became legend William Morrow & Co. $ 8.95, were count of! Headlines in 2005 when she fired a contestant on glenn turner pyramid scheme Apprentice who embraced the phrase as evidence of malfeasance of!, 'nuG > wP6T7: '' K3 ' G9U TimesMachine is an exclusive benefit for delivery! More than 30 States '' targeted him they never intended to break the Law the focus the!, stopped for Good and all, is saved by a showy evangelist from New Orleans to... To Charles Colson, folks, you got ta believe 15 other cities in Texas ;...
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