What happened? 0000023769 00000 n
PHOENIX, ARIZ. Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. 0000006135 00000 n
[3] 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. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. 0000008799 00000 n
Just before sentencing, Rector told Dougherty that Challenge had done nothing wrong. Even then, he never stopped explaining. C-74-1067-LHB., No. 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? 0000006933 00000 n
[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. [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. L|B@9`CwX}LKC 0000041122 00000 n
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[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. ", "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. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. [28] Holiday Magic distributors were invited, though not required, to attend the Leadership Dynamics Institute self-improvement sessions at a cost of $1000 each. Eventually, the truth comes out. [1][5] Navarro described the training as having "overtones of strict military training techniques. 0000003839 00000 n
<> [4], Patrick, a student of Alexander Everett (founder of Mind Dynamics), used Mind Dynamics techniques as well as the Silva Method in the Holiday Magic organization. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. It all carne tumbling down eventually. [30] In popular culture [ edit] 0000037159 00000 n
"If anyone was hurt in our program, I am extremely sorry. . 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. He was paroled in November but must be supervised by. Even as she spoke, the housing bubble riven with fraud committed (and invited) by banks, ratings agencies, mortgage brokers and appraisers was growing bigger. ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . 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 %%EOF 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. 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. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. Warren., 497 F.2d 687., C.A.Wis. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. 0000008799 00000 n
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. 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. 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. In 1979, his fortune gone, he attempted a comeback with another motivational company called Challenge, Inc.,[6] which led to more legal difficulties. 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. endobj 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. 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. At the same time, the federal government became less likely to prosecute obvious malfeasance. USA vs Glenn W. Turner, Nash Publications, New York, 1976 Rudy Maxa . 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. Koscot and Dare to be Great grew rapidly and Turner became famous. "Our intent was to help people believe in themselves.". [1] In 1971, the Federal Trade Commission filed a lawsuit against Koscot, charging restraint of trade. 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. Koscot Interplanetary. [25] The Office of the State Attorney General in Maine, United States cites In re Holiday Magic, Inc., 84 F.T.C. . 0000005276 00000 n
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 up by his expensive unborncalfskin bootstraps to the leadership of a $100 million business empire. On May 16, 1974, a compromise settlement with approximately 31,000 class members, establishing a trust fund worth $2,600,381, was approved by the court. [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. 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. Lotstein said he doubted the money would ever be collected. DeMuro, RG. The main portion of the building is wide and round, while the top features a design that is fort-like in nature. Turner pleaded guilty to a misdemeanor fraud charge in return for a probation sentence. startxref Mr. Turner and Mr. Rechtor, who also received seven years, were. 271 0 obj 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. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . But the notion that you can fake it until you make it began to spread through multi-level marketing efforts such as Turners, where studies show few earn a profit and deception is rife. "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. Committee on Banking, Housing and Urban Affairs. Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. JrsJk**j;{:[Z{&N. 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. This page was last edited on 18 February 2023, at 23:43. the Glenn Turner modification is a good one. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. Yes, Mencken would have loved it. 271 0 obj DARE TO BE GREAT. 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. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. [7] He told reporters as he was led away to jail: The good that I have done outweighs the bad. 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. 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. Bids on the Castle property will be advertised over the next few weeks to notify any other bidders of the pending sale. ={w5d[#"zM#h:.d\r,&4*
76I\@yH'H}T4idJq$nVsL(sXk TN4%8k;|PqK+I:p*K"&Z{Z;o;}X8z}r%. Under this type. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX Glenn W. Turner is now all but forgotten. But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. In the low-interest-rate environment of the past decade, investors put up money with little diligence, and fake it till you make it turned toxic. 0000005276 00000 n
Two years later he founded Dare to be Great, a motivational program similar to the later Challenge. 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. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. [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. endstream
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Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). [1] It became entangled in numerous legal difficulties and went out of business in the 1970s.[2]. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. In the end, Turner was saved by New Orleans evangelist, known as the Chaplain of Bourbon Street, who also pointed the way to fiscal salvation by introducing Turner to his own business managera former minister himself. A few of their supporters cried as the sentences were read. 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. As a subscriber, you have 10 gift articles to give each month. 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. In 1967 Turner borrowed $5,000 to start his Koscot Interplanetary Inc., a cosmetics firm in which distributors could sell other distributorships for commissions. 2/10/75, p. 38) and Bestline . This book may be edifying but, having long believed, considerable evidence to the contrary notwithstanding, that The People Is Not Dumb, I found it depressing. 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. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. Investment of $5,000. 0 Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. 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. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> . Koscot Interplanetary was a company from Orlando, Florida, selling mink oil-based cosmetics and was started by Glenn W. Turner in 1967. 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. 0000032500 00000 n
Select the best result to find their address, phone number, relatives, and public records. )[6] 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.. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. Government needs to return to enforcing meaningful financial regulation; politicians and entrepreneurs who deceive their supporters need to face consequences. That spirit is everywhere. Corporate shareholders began to prioritize quarterly profits over long-term results. 124., July 6, 1977. 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. 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. 0000001791 00000 n
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. "I think the court's ruling today put the final period in the final chapter of the book on Glenn Turner.". 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. Anyone can read what you share. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB
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The company called Zolene was about to go out of business. Its backed by no government, is all but impossible to use and serves no legal need. The Challenge program was similar to Turners Dare to be Great program, which won him national attention during the late 1960s and early 1970s, the state attorney generals office said. 58.95. 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. Annotated bibliography on chain letters and pyramid schemes. 0000009459 00000 n
I didn't take it seriously because I was running for . %%EOF 0000000016 00000 n
the Glenn Turner modification is a good one. In August 1972, he was charged with "86 counts of sale of unregistered securities and failing to register as a dealer". that our program was a crime," he said. New York: William Morrow & Co. $8.95. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. Stewart was behind the societal curve. 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. In 1964, after a bankruptcy and several business failures, Patrick (age 33) was walking by a garage in San Rafael, California, and noted that fruit-scented cosmetics were being sold. 0000037334 00000 n
All these characters in bright red polyester doubleknits, with rhinestone flag lapel pins, dashing around the country making people hum, MMMMMMMM MONEY!. 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! A nine-month trial ended in a hung jury. 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. 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. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. 11106 (1975). 0000031956 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. 0000041122 00000 n
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No. We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. 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. One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. 0000010114 00000 n
By Rudy Maxa. United States District Court, D. Oregon. 0000031782 00000 n
The history of fake it till you make it offers a lesson here, if we want to heed it. [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". Well, it was never really worth all that, and when blizzard of Federal and state charges of fraud, securities irregularity and other actions drove him nearly into bankruptcy, he ended up selling one of his companies for $15,000. "The Role of Small Business in Franchising, Hearings Before the Subcommittee on Minority Small Business. The two men told Dougherty before sentencing that they never intended to break the law. The House was supposed to grow with population. 0000003563 00000 n
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