Turner, the son of a South Carolina sharecropper and a self-styled country boy, rose to fame in the early 1970s through inspirational speeches that promised great wealth if people bought distributorships in his operations. 0000003839 00000 n
As Mr, Maxa notes, Americans have always had a weakness for successful rogues. There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. That spirit is everywhere. 0000001660 00000 n
". "And so can you," they would tell the crowd. [28] Holiday Magic distributors were invited, though not required, to attend the Leadership Dynamics Institute self-improvement sessions at a cost of $1000 each. A few of their supporters cried as the sentences were read. 0000003018 00000 n
", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker. 0000031956 00000 n
Extensive notes. In my business, theres just no faking it, Stewart said. 0000004278 00000 n
of plan, which will be referred to as the Glenn Turner or multi-level distributorship scheme, the promoters offer to the public a series of contracts called "Adventures." [12] The indictment said that Bailey had appeared in a film made for Turner's organization and had appeared with Turner at several rallies. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses.[30]. 0000041306 00000 n
Just when one has about decided there is little more one wants to know about the harelipped sharecropper's son, the book changes focus to the years of various legal proceedingssecurities irregularities, mail fraud, obtaining money through false pretensesthat finally stopped the unstoppable Turner. Stewart was behind the societal curve. 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. Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. .to various charitable organizations. (Javice has denied the banks claims.) There, it appeared as a way for people in recovery to project themselves forward into a more sober future. <>stream
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. 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. "[23] One of the Holiday Magic Inc. cases was also cited by The University of Chicago Law Review[24] and the Columbia Law Review. Oaks pleaded guilty last year to one felony count of operating an illegal pyramid scheme and agreed to testify against Turner and Rechtor. 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. 164 0 obj
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No surprise, trust is cratering. "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. 235 0 obj [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". : 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. 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. 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. "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. 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 W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. Z t{Hd)a^lEHuw-GB9Y/S5zcWC8,)X9W^kjx,:h*#H_TNG^Od
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&C?UG b^>'V/~`C\a(bG 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. /b+;*R2VL5
WC^ ;_>[AM "su`/d_w$3qhTGS;#m!bytBefF~s*GB9z\eBUK,nrEYXn u.$leJrk5@ Government needs to return to enforcing meaningful financial regulation; politicians and entrepreneurs who deceive their supporters need to face consequences. Yes, the ethos can lead to success, as long as you actually have the goods and the skills. They drove new Cadillacs and wore alligator shoes. 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". 0000032500 00000 n
See the article in its original context from. 0000001036 00000 n
A nine-month trial ended in a hung jury. ,'nuG>wP6T7:"K3'G9U Targets for citations in Chain Letter Evolution. [1], Pyramid schemes being illegal, Koscot became involved in substantial litigation from government agencies and Koscot's customers. 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. 124., July 6, 1977. Civ. Koscot was founded in 1967. 0000023584 00000 n
1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. The $5,000 investment paid for motivational seminars and tapes, but the indictment said the real business of the pyramid operation was to induce more people to invest money to become salespeople who, in turn, were expected to recruit others. 0000006135 00000 n
L|B@9`CwX}LKC The House was supposed to grow with population. Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. The history of fake it till you make it offers a lesson here, if we want to heed it. A technicality of the law is what got me. By the time he died in 2020, it took more than a year for a newspaper reporter to stumble across his Legacy.com obituary and make note of his death. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). This page was last edited on 18 February 2023, at 23:43. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. [28], Ben Gay, a high-level instructor at Leadership Dynamics, was President of Holiday Magic in the United States. 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. 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.. 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. 0000037334 00000 n
271 0 obj TimesMachine is an exclusive benefit for home delivery and digital subscribers. 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. Its backed by no government, is all but impossible to use and serves no legal need. Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. As he was led off to jail, he told reporters: The good that I have done outweighs the bad. We are forever suspicious, convinced someone else wants to profit at our expense. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL-
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The two men told Dougherty before sentencing that they never intended to break the law. Pyramid schemes are inherently unstable and eventually must collapse. 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. "Our intent was to help people believe in themselves.". 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. 0000007360 00000 n
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[1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. Turner had a talent for making people believe in him. Lotstein said 202 Arizona residents participated in the program. The guy at the top could make millions. trailer 0000009459 00000 n
House Committee on Small Business, 1991. Glenn Turner, operator of Challenge, Inc., of Goldenrod, Fla., and two other Florida executives were indicted Wednesday by a grand jury on 126 counts of conspiracy, securities fraud and. House Permanent Select Committee on Small Business., 1973, P. 127, 137, 157, 203. endstream
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WASHINGTON, May 17 The Securities and Exchange Commission asked a Federal District Court today to halt the sale of Glenn W. Turner's pyramid franchising scheme on the ground that it is. 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. 235 37 C-74-1067-LHB., No. 0000008799 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. 0000031956 00000 n
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The good that I have done outweighs the bad. [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. 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. 0000003563 00000 n
Some "schemes" are specifically developed to sidestep Pyramid Scheme legislation by offering a "product" or "service". One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . 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. Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. . [5], The State of California filed suit against Holiday Magic in December, 1972. Unfortunately, the multi-level cosmetic company became entangled in numerous legal difficulties and went out of business in the . "It is hard for me to believe . Mr. Turner and Mr. Rechtor, who also received seven years, were. [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. 0000041122 00000 n
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Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. 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. [1], In 1974, after almost 10 years in operation and tied to pyramid schemes and controversy, both Leadership Dynamics and Mind Dynamics ceased operations. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL-
M-\\mm||=C#cbC"R32S 0000002201 00000 n
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Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. . Summary of this case from Great Western Bank & Trust v . One report has him convicted of running a pyramid scheme in Arizona in 1985 and released after five years in prison. 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.". 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. Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX Wk. As a subscriber, you have 10 gift articles to give each month. ", United States Congress. 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. One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. 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. [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. %%EOF Under this type. JrsJk**j;{:[Z{&N. NEWS RELEASE SUMMARYSeptember 1, 2021. 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. trailer What Turner really sold was hope, which is the stock in trade of others beside pyramid sales pushers. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d
[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. 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. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. His sales rallies became legend. Turner, though, had hired a lawyer for his sentencing Thursday. "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. %%EOF He was paroled in November but must be supervised by. 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. But what he is actually selling, he . In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. . Mr. Maxa has the newspaper reporter's habit of cramming in information wherever it will fit, whether apposite or no. endobj 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. 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. But Dougherty denied bond and ordered both men to begin serving their sentences immediately. Lotstein acknowledged that not all of the Challenge "victims" were pleased that Turner was prosecuted. 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 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. Just before sentencing, Rector told Dougherty that Challenge had done nothing wrong. 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. ", United States Congress. 6, 19, 24., Library of Congress. [6], In February 1973, Holiday Magic was sued for calumny by Avon Products. By Rudy ???trated. An interesting man, Glenn Turner, and Rudy Maxa, a Washington Post reporter, has an interesting problemwhat do you do with a con man who doesn't know he's a con man? And we need to be less credulous and stop falling for the next shiny thing. United States District Court, D. Oregon. 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. 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. 0000041306 00000 n
Two dwarfs would hop out and unroll a red carpet. Glenn W. Turner is now all but forgotten. DARE TO BE GREAT. 0000005760 00000 n
Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. 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. 0000004799 00000 n
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