271 0 obj 0000005276 00000 n "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. In the lawsuit, Avon Products' claimed that "Holiday Magic employees distributed leaflets accusing Avon of goon squads, paying off The District attorney's office.."[7], In June 1973, the United States Securities and Exchange Commission filed a lawsuit against Holiday Magic,[8] charging Patrick with "bilking some 80,000 people out of more than $250 million through his Holiday Magic cosmetics and soap empire. 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. "I think the court's ruling today put the final period in the final chapter of the book on Glenn Turner.". Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. 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]. [5][29], William Penn Patrick bought Mind Dynamics in 1970. 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. Corporate shareholders began to prioritize quarterly profits over long-term results. The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . %PDF-1.7 % If it can happen to Charles Colson, folks, you gotta believe. [10] The FTC's decision on Koscot set a precedent for defining if a company is engaging in illegal pyramiding. Food delivery services such as Grubhub and Postmates included restaurants on their platforms that didnt have contracts with them. 84 F.T.C. By Rudy Maxa. 235 0 obj [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. Sign up for a weekly roundup of thought-provoking ideas and debates. 0000007782 00000 n In my business, theres just no faking it, Stewart said. He first pushed cosmetics and later a motivation course called Dare to Be Great. By Rudy ???trated. Government needs to return to enforcing meaningful financial regulation; politicians and entrepreneurs who deceive their supporters need to face consequences. [3], In 1973, Holiday Magic's proceedings were prohibited by the Market Court of Sweden, and a fine of 2 million Swedish kronor was imposed. 2/10/75, p. 38) and Bestline . One report has him convicted of running a pyramid scheme in Arizona in 1985 and released after five years in prison. But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. 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. I didn't take it seriously because I was running for . 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. "They come from all over this country and abroad. Anyone can read what you share. 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. Warren., 497 F.2d 687., C.A.Wis. Rector's only asset is his house, and his only income a $200-a-month military pension, the investigation found. Committee on Banking, Housing and Urban Affairs. 0000004799 00000 n I have remorse for these people that did not benefit by what we set out to do. 0000004278 00000 n 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. JrsJk**j;{:[Z{&N. . The main portion of the building is wide and round, while the top features a design that is fort-like in nature. [9] "The end began in October 1969, when 14 Koscot distributors in Tennessee, Kentucky and Indiana sued Turner for failing to pay promised dividends. We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. On this Wikipedia the language links are at the top of the page across from the article title. No surprise, trust is cratering. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. 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. 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. On this Wikipedia the language links are at the top of the page across from the article title. 1974., May 20, 1974. What Turner really sold was hope, which is the stock in trade of others beside pyramid sales pushers. [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. 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. 0000008424 00000 n 0000004119 00000 n 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. "[23] One of the Holiday Magic Inc. cases was also cited by The University of Chicago Law Review[24] and the Columbia Law Review. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. 0000006496 00000 n 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.". 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. Some "schemes" are specifically developed to sidestep Pyramid Scheme legislation by offering a "product" or "service". <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> Eventually, the truth comes out. But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. Glenn W. Turner worked briefly for Holiday Magic in 1966. 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. 0000009459 00000 n Even then, he never stopped explaining. "Equal Credit Opportunity Act Amendments and Consumer Leasing Act-1975., Hearings, United States Congress. 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. For more information, visit the listing at bit.ly/2mgnmna. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. Summary of this case from Great Western Bank & Trust v . What a fine madness it was, the heyday of Dare to Be Great. As far as Ive been able to discover, these are among the first times that this now commonplace phrase received prominent mention in the media. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. uOf2v]IM{7\~CPWb=sVX\IQ2ec )^y&wM9t>5YO! [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. 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. Dougherty also ordered Turner and Rector to pay $44,000 each in fines to be distributed to victims. Unsatisfied investors also filed lawsuits. [17] Turner described it as one of the first "pyramid marketing" companies in America. 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. 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. 0000001660 00000 n 0000003018 00000 n Lotstein acknowledged that not all of the Challenge "victims" were pleased that Turner was prosecuted. Mr. Maxa has the newspaper reporter's habit of cramming in information wherever it will fit, whether apposite or no. [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. Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. 0000043655 00000 n Box 1. [12] The indictment said that Bailey had appeared in a film made for Turner's organization and had appeared with Turner at several rallies. 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. Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. 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. (unrelated to Holiday Magic). There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. Lets fix that. [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. trailer ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". 58.95. United States House of Representatives. This is a good little book about an earnest con artist who ripped off the American public for $75 million. 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.. Glenn W. Turner is now all but forgotten. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. <>stream 0000041306 00000 n Pyramid schemes are inherently unstable and eventually must collapse. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. 0000037334 00000 n In 1975, Turner pleaded guilty to a single charge of violating securities laws and was given probation. 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. "[1], Sales Dynamics was another program of instruction for pay available to Holiday Magic Distributors to help them in their business activities. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. Donate And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. [28], Ben Gay, a high-level instructor at Leadership Dynamics, was President of Holiday Magic in the United States. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). ". Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. 0000001791 00000 n Charges were then dropped against Bailey. Turner had a talent for making people believe in him. [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. [1][5] Navarro described the training as having "overtones of strict military training techniques. [5] 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. 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. The distributors could make thousands. Turner, Rechtor and a third man, Alan K. Oaks, were accused of defrauding Arizona residents who were promised incomes of $1,000 to $3,000 a month if they invested $5,000 to become sales people for Challenge Inc. Investors were subjected to highly emotional sales and promotion techniques in a process described by company insiders as jacking up prospects, Assistant Attorney General R. Jeffrey Woodburn said during the trial. [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". In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. 748 - IN THE MATTER OF HOLIDAY MAGIC, INC., ET AL. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX : 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. 0000004799 00000 n 0000004278 00000 n %PDF-1.7 % 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. 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". House Permanent Select Committee on Small Business., 1973, P. 127, 137, 157, 203. 0000006933 00000 n [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. 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. He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. [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. Since his victims were usually the little people, the guys who are always getting it in the neck from the system anyway, it was a matter of hitting cripples. Turner's long gone from the the Glenn Turner modification is a good one. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. But that came later. We are forever suspicious, convinced someone else wants to profit at our expense. the Glenn Turner modification is a good one. That spirit is everywhere. Lotstein said he doubted the money would ever be collected. 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. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. Our intent was to help people. 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. 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