But faking it in matters of money is another matter entirely. If it can happen to Charles Colson, folks, you gotta believe. [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. The history of fake it till you make it offers a lesson here, if we want to heed it. See the article in its original context from. If anybody was hurt by our program or suffered because of it, I am sure sorry, Rechtor said. Dougherty said he had received "hundreds" of letters in support of Turner. 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. Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. [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. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. 0000023769 00000 n . ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. [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. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. JrsJk**j;{:[Z{&N. 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. Some of the most famous pyramid schemes in U.S. history. 748 - IN THE MATTER OF HOLIDAY MAGIC, INC., ET AL. Senate. 0000031782 00000 n Morrow. By Rudy Maxa. Box 1. 0000037334 00000 n Committee on Banking, Housing and Urban Affairs. The company had been investigated by the Market Court of Sweden,[3] United States Securities and Exchange Commission, the Federal Trade Commission, and the State of California. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX 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. Glenn W. Turner worked briefly for Holiday Magic in 1966. 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. 0000007782 00000 n A list of over 350 print sources on paper chain letters and pyramid schemes. 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. [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. What Turner really sold was hope, which is the stock in trade of others beside pyramid sales pushers. 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. "It is hard for me to believe . Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). Koscot and Dare to be Great grew rapidly and Turner became famous. Select the best result to find their address, phone number, relatives, and public records. Our intent was to help people. (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.). There, it appeared as a way for people in recovery to project themselves forward into a more sober future. 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. 124., July 6, 1977. 0000006135 00000 n [28], CEO and President Roland R. Nocera pleaded guilty to securities fraud, in the case United States v. Nocera, et al. 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. The purpose of this Note is to investigate the 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. [15] Larry Stephen Huff, another key individual in the company, served two years in a Federal Prison, for charges related to a Ponzi scam (unrelated to Holiday Magic).[21]. 0000001791 00000 n JrsJk**j;{:[Z{&N. [5], The State of California filed suit against Holiday Magic in December, 1972. DeMuro, RG. In SEC v. Glenn W. Turner Enterprises, Inc., 474 F.2d 476, 482 (9th Cir. New York: William Morrow & Co. $8.95. 0000045154 00000 n 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. Anyone can read what you share. Glenn W. Turner worked briefly for Holiday Magic in 1966. ", "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. 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.. <>stream The House was supposed to grow with population. According to a presentence investigation, Turner, who has been living in North Carolina, is broke and has no assets or income. 0000023584 00000 n But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). ", United States Congress. [1] Distributors for Holiday Magic, who took the course, have considered it as a Holiday Magic Business expense. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. We are forever suspicious, convinced someone else wants to profit at our expense. 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. <> Glenn Wesley Turner August 19, 1934 - January 8, 2020 Lake Mary, Florida Set a Reminder for the Anniversary of Glenn's Passing Forward to Family & Friends Share a Memory Print Contact Support Upgrade Death Certificates Share This Obituary Make a Memorial Donation Tributes.com partners with over 100 national charities. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. 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]. "The first time I ever heard those words from those men was in this courtroom," Rector said. 0000003839 00000 n The saying became so pervasive in Amway that it would be the title of a 1980s expos by Phil Kerns. "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. "And so can you," they would tell the crowd. 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. [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". SAN DIEGOGlenn Arcaro of Los Angeles pleaded guilty today in federal court for his participation in a massive conspiracy involving BitConnect, a cryptocurrency investment scheme, which defrauded investors from the United States and abroad of over $2 billion. %PDF-1.7 % [18] Clarke referred to the company as an "illegitimate" business. But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . 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. Charges were then dropped against Bailey. Maricopa County Superior Court Judge. Glenn W. Turner is now all but forgotten. [30] In popular culture [ edit] 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. https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. The main portion of the building is wide and round, while the top features a design that is fort-like in nature. "[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. 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. Eventually, the truth comes out. On this Wikipedia the language links are at the top of the page across from the article title. A nine-month trial ended in a hung jury. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. "I think the court's ruling today put the final period in the final chapter of the book on Glenn Turner.". Lotstein said he doubted the money would ever be collected. 0000031956 00000 n 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. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . 0000041306 00000 n 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. Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. Turner himself offers one cautionary tale. [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. 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. trailer endobj But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. Turner had a talent for making people believe in him. NEWS RELEASE SUMMARYSeptember 1, 2021. 235 0 obj He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. 0000037159 00000 n If he never quite tells us what made Glenn Turner runthat is was he a con artist or merely an overeupeptic free enterpriser?no one else knew either, including perhaps Turner. The distributors could make thousands. Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. %PDF-1.7 % Sign up for a weekly roundup of thought-provoking ideas and debates. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. 0000005276 00000 n 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. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. 256 pp. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. [3], The company was termed as part of the "big three" scams, in a 1974 United States Senate hearing before the Consumers of the Committee on Commerce that dealt with pyramid sales. Warren., 497 F.2d 687., C.A.Wis. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. 0000001036 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 Holiday Magic Inc. et al. Subcommittee on Consumer Affairs. Even then, he never stopped explaining. [1], In 1974, after almost 10 years in operation and tied to pyramid schemes and controversy, both Leadership Dynamics and Mind Dynamics ceased operations. the Glenn Turner modification is a good one. %%EOF [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. Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. It all carne tumbling down eventually. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. TimesMachine is an exclusive benefit for home delivery and digital subscribers. Mr. Maxa has the newspaper reporter's habit of cramming in information wherever it will fit, whether apposite or no. 0 . 0000003839 00000 n For more information, visit the listing at bit.ly/2mgnmna. 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. 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.. He seems to have been equal parts P. T. Barnum, Horatio Alger, snake oil salesman and evangelist. %%EOF 0000043655 00000 n Rector said the men -- Douglas Beekman of Apopka and Richard Mailman of Altamonte Springs -- never voiced such a concern to him. 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. 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. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. 0000007360 00000 n Z t{Hd)a^lEHuw-GB9Y/S5zcWC8,)X9W^kjx,:h*#H_TNG^Od i~l={'Zg^-0z V|0P%* &C?UG b^>'V/~`C\a(bG 0000002472 00000 n 0000002472 00000 n 0000003563 00000 n 0000002742 00000 n [12] Holiday Magic was also labeled a "pyramid scheme" and a "multi-level distributorship" by the United States Bureau of Domestic Commerce, in their 1976 published book: Crimes Against Business: A Management Perspective. [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. 0000037159 00000 n Government needs to return to enforcing meaningful financial regulation; politicians and entrepreneurs who deceive their supporters need to face consequences. Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. 164 0 obj <>stream [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. 0000002201 00000 n Yes, Mencken would have loved it. As a subscriber, you have 10 gift articles to give each month. [5] 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. that our program was a crime," he said. . The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. On this Wikipedia the language links are at the top of the page across from the article title. endstream endobj 165 0 obj <>stream 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.". But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. 0000003563 00000 n 0000003297 00000 n 0000000016 00000 n Turner, 57, served nearly two-thirds of a seven-year term in Arizona for fleecing investors in a scheme for distributing motivational tapes. House Committee on Small Business, 1991. "The Role of Small Business in Franchising, Hearings Before the Subcommittee on Minority Small Business. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. United States Senate election in Florida, 1974, "Meet the con man who sold America on 'fake it till you make it', "Dare to be Great, Inc! Koscot Interplanetary. 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. , before the Subcommittee on Minority Small Business schemes, lost his freedom Thursday letter... And entrepreneurs who deceive their supporters need to face consequences program or suffered because of it, I sure. By William Penn Patrick best result to find their address, phone number, relatives, and to their. 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