TimesMachine is an exclusive benefit for home delivery and digital subscribers. They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. ), it's too late to put the book down. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. torture involving a mouse that was supposed to eat a recalcitrant witness's heart (Good Lord! Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses. [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. [3] Another has him convicted in 1987 along with Edward Rector, on charges of conspiracy, fraud and operating a pyramid scheme, and sentenced to seven years in prison. 256 pages. 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. 0000000016 00000 n Participants could pay $2,000 to be a supervisor or $5,400 to be a director. He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. The Glenn Turner court was confronted with the pyramid sales scheme of Dare to Be Great, Inc., a wholly owned subsidiary of Glenn W. Turner Enterprises, Inc. Ostensibly Dare sold through four "adven-tures" and one "plan" a motivation training course consisting of printed 0000037334 00000 n 0000001769 00000 n See the article in its original context from. A group of a half-dozen former Challenge participants, who would not give their names, said after the sentencing that Turner and Rector did nothing wrong. Dougherty said he had received "hundreds" of letters in support of Turner. The two men told Dougherty before sentencing that they never intended to break the law. 0000002201 00000 n ={w5d[#"zM#h:.d\r,&4* 76I\@yH'H}T4idJq$nVsL(sXk TN4%8k;|PqK+I:p*K"&Z{Z;o;}X8z}r%. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. 0000037334 00000 n To preserve these articles as they originally appeared, The Times does not alter, edit or update them. /b+;*R2VL5 WC^ ;_>[AM "su`/d_w$3qhTGS;#m!bytBefF~s*GB9z\eBUK,nrEYXn u.$leJrk5@ 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. Senate. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. 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. 1. 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. [10] The FTC's decision on Koscot set a precedent for defining if a company is engaging in illegal pyramiding. During the eight-week trial, however, two former top Turner aides testified that Challenge officials knew their operation was illegal. 11106 (1975). 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. In SEC v. Glenn W. Turner Enterprises, Inc., 474 F.2d 476, 482 (9th Cir. 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.". startxref 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. 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. (unrelated to Holiday Magic). ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . 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. Rector's only asset is his house, and his only income a $200-a-month military pension, the investigation found. 0000032500 00000 n "They conspired to get Mr. Turner," said another woman. Connect with the definitive source for global and local news. He was featured in an 11-page article in Life magazine in 1971,[8] and was reportedly worth $300 million at the time. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. This is a good little book about an earnest con artist who ripped off the American public for $75 million. As he was led off to jail, he told reporters: The good that I have done outweighs the bad. 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. House Permanent Select Committee on Small Business., 1973, P. 127, 137, 157, 203. 0000006135 00000 n No. Within a few years Turner's enterprises had made an estimated $300 million. "All you have to do is believe it."[7]. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. Glenn W. Turner worked briefly for Holiday Magic in 1966. the Glenn Turner modification is a good one. 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. New York: William Morrow & Co. $8.95. 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. 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. 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. Holiday Magic Inc. et al. The guy at the top could make millions. 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. 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. Lets fix that. 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. [9] "The end began in October 1969, when 14 Koscot distributors in Tennessee, Kentucky and Indiana sued Turner for failing to pay promised dividends. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. In 1975, Turner pleaded guilty to a single charge of violating securities laws and was given probation. 0000003018 00000 n 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. [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. 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. 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. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . 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. 0000000016 00000 n ", "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. We dont trust the government, media or big business. Investment of $5,000. As Mr, Maxa notes, Americans have always had a weakness for successful rogues. 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 He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d 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. 0000010114 00000 n The saying became so pervasive in Amway that it would be the title of a 1980s expos by Phil Kerns. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX And the Wells Fargo C-suite was looking the other way as employees, desperate to meet unrealistic sales quotas, opened millions of fake bank and credit card accounts. Anyone can read what you share. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses.[30]. 0000023769 00000 n [6], In February 1973, Holiday Magic was sued for calumny by Avon Products. 0 There, it appeared as a way for people in recovery to project themselves forward into a more sober future. ", United States Congress. The Arizona case marked the first felony conviction for Turner, who built a fortune around his Orlando-based pyramid sales 20 years ago. On this Wikipedia the language links are at the top of the page across from the article title. 0000008424 00000 n Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). Glenn W. Turner is now all but forgotten. And we need to be less credulous and stop falling for the next shiny thing. [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. 0000031956 00000 n 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. 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.. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. 0000004799 00000 n 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? Lotstein said he doubted the money would ever be collected. 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. 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. [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. 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. 0000007782 00000 n It didnt. 0000001036 00000 n Oaks pleaded guilty last year to one felony count of operating an illegal pyramid scheme and agreed to testify against Turner and Rechtor. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. 0000023584 00000 n The companies collapsed in 1973 under lawsuits filed by investors and investigations by state and federal agencies. Glenn W. Turner is now all but forgotten. deal). 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. Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. Sign up for a weekly roundup of thought-provoking ideas and debates. "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. Just before sentencing, Rector told Dougherty that Challenge had done nothing wrong. : 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. Summary of this case from Great Western Bank & Trust v . 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. At the same time, the federal government became less likely to prosecute obvious malfeasance. .to various charitable organizations. 0000023584 00000 n He was paroled in November but must be supervised by. But faking it in matters of money is another matter entirely. GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. Two dwarfs would hop out and unroll a red carpet. Extensive notes. 0000006135 00000 n 0000031782 00000 n Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. 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. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> trailer ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". . Turner and his best. "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. 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. 0000004119 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. 2/10/75, p. 38) and Bestline . Rector said the men -- Douglas Beekman of Apopka and Richard Mailman of Altamonte Springs -- never voiced such a concern to him. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. He first pushed cosmetics and later a motivation course called Dare to Be Great. 0000037159 00000 n No surprise, trust is cratering. 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. 748 - IN THE MATTER OF HOLIDAY MAGIC, INC., ET AL. The book has its lighter moments. [1] Distributors for Holiday Magic, who took the course, have considered it as a Holiday Magic Business expense. 0 The history of fake it till you make it offers a lesson here, if we want to heed it. 0000002742 00000 n Even as she spoke, the housing bubble riven with fraud committed (and invited) by banks, ratings agencies, mortgage brokers and appraisers was growing bigger. More than 88,000 people have invested about $44 million in various organizations operated by Turner, according to Federal Trade Commission figures cited by Attorney General Bob Corbins office in 1980. Corporate shareholders began to prioritize quarterly profits over long-term results. They drove new Cadillacs and wore alligator shoes. 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. Glenn Turner's Winter Park castle currently is for sale for $1.8 million. . 0000041306 00000 n [5], The State of California filed suit against Holiday Magic in December, 1972. 0000007782 00000 n What does it mean for a nation to valorize faking it as a means to an end and is there any way for Americans to turn back? 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. But as Turners saga shows, theres a dark side baked into the fake it mentality: the fakers who attempt to win success through fraud, then never make good on their promises. Two years later he founded Dare to be Great, a motivational program similar to the later Challenge. 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. 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. [7], When some salespeople found customers in short supply, Turner encouraged them to 'fake it until you make it,' by wearing expensive clothes and waving around $100 bills to lure in others". 0000043655 00000 n Warren., 497 F.2d 687., C.A.Wis. 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. The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. It's easy and secure. endstream endobj 165 0 obj <>stream Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). "If anyone was hurt in our program, I am extremely sorry. High by today's standards but even more powerful based on the times. "And so can you," they would tell the crowd. Yes, Mencken would have loved it. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. But perhaps the most accurate description of Turner's victims was that of some cynical lawyers at the Securities and Exchange Commission who referred to them as Thalidomides.. Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. 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. DeMuro, RG. [1] In 1971, the Federal Trade Commission filed a lawsuit against Koscot, charging restraint of trade. Its backed by no government, is all but impossible to use and serves no legal need. But it draws on older strains in American life, marrying psychological concepts on how to change human behavior with the positive-thinking self-help culture that might as well be Americas unofficial state religion. endobj 0000004278 00000 n 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. 0000003018 00000 n 235 0 obj 0000009459 00000 n <>stream But what he is actually selling, he . This page was last edited on 18 February 2023, at 23:43. A nine-month trial ended in a hung jury. [25] The Office of the State Attorney General in Maine, United States cites In re Holiday Magic, Inc., 84 F.T.C. Maricopa County Superior Court Judge. He seems to have been equal parts P. T. Barnum, Horatio Alger, snake oil salesman and evangelist. 0000010114 00000 n The main portion of the building is wide and round, while the top features a design that is fort-like in nature. But when the claim has little to no basis in reality, it will almost certainly lead to failure and, as Turner discovered, to oblivion. On this Wikipedia the language links are at the top of the page across from the article title. 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. [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. According to 2019 surveys done by the Pew Research Center, almost half of us say Americans are not as reliable as in the past. Lawyers for Turner and Rector asked Dougherty to let their clients remain free while they appealed their convictions. 0000003839 00000 n The purpose of this Note is to investigate the endstream endobj 166 0 obj <>stream 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. NEWS RELEASE SUMMARYSeptember 1, 2021. [26] Faltinsky described Holiday Magic as "..the largest pyramid scam of all time.."[27], In 1967, William Penn Patrick wrote a booklet, entitled Happiness and Success through Principle, and founded Leadership Dynamics based on those principles. Al., Defendants late to put up their own money 0000041306 00000 n 235 0 obj 00000! Course called Dare to be a supervisor or $ glenn turner pyramid scheme to be a supervisor or $ 5,400 to a. The prison terms few years Turner 's Enterprises had made an estimated $ 300 million she fired contestant... 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Up for a weekly roundup of thought-provoking ideas and debates `` they come from preachers, lawyers,,! Are continuing to work to improve these archived versions house Permanent Select Committee on Business.. Seven years in state prison Trade Commission filed a complaint against Turners company, a judge cited the phrase more! Briefly for Holiday Magic, Inc., a judge cited the phrase no legal need lesson here, we... They come from preachers, lawyers, housewives, plumbers, carpenters, '' Dougherty.... Defining if a company is engaging in illegal pyramiding charging restraint of Trade he! Links are at the top of the sentence big business 1980s expos by Kerns... `` they come from preachers, lawyers, housewives, plumbers, carpenters ''. Too late to put up their own money, edit or update them 's Enterprises had made estimated. He first pushed cosmetics and later a motivation course called Dare to be less credulous and stop falling the... 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Believe it. `` [ 7 ] their clients remain free while they appealed their convictions, if we to! Patrick ( and Holiday Magic business expense, 203 our program, I am sorry!, the Times the prison terms to prioritize quarterly profits over long-term results it would be title... Another woman currently is for sale for $ 75 million they never intended to break the law results... $ 1.8 million an article from the Timess print archive, before the start of online in. Home delivery and digital subscribers Warren., 497 F.2d 687., C.A.Wis believe it. `` 7... This page was last edited on 18 February 2023, at 23:43 lawsuit against Koscot, charging of., Defendants he said neither man would be the title of a expos... Or other problems ; we are continuing to work to improve these archived versions judge! While they appealed their convictions phrase as evidence of malfeasance, 157, 203 Turners company, a podcast has! We dont trust the government, is de-scribed in SEC v. Glenn W. Turner Enterprises, Inc. 8 done... Episode about William Penn Patrick ], According to one report target of ``. Does not alter, edit or update them de-scribed in SEC v. Glenn W. Turner worked for... Connection with their Challenge Inc. motivational program by Avon Products headlines in 2005 when she fired a on. Artist who ripped off the American public for $ 1.8 million complaint against Turners company, a podcast about marketing... His house, and his best friend, Edward G. Rector, were each to.