glenn turner pyramid scheme

[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. Self-help culture took that to ludicrous places: Whatever the mind can conceive and believe, it can achieve, claimed wealth guru Napoleon Hill in Think and Grow Rich.. 0000006933 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. 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? 0000001769 00000 n 0000003839 00000 n Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. The distributors could make thousands. 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. 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. Ward, et al. Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. 58.95. "They come from all over this country and abroad. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. 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. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. 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. No. Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. 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! [1] Distributors for Holiday Magic, who took the course, have considered it as a Holiday Magic Business expense. 271 0 obj But Dougherty denied bond and ordered both men to begin serving their sentences immediately. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. He seems to have been equal parts P. T. Barnum, Horatio Alger, snake oil salesman and evangelist. Participants could pay $2,000 to be a supervisor or $5,400 to be a director. they indicted me on aiding and abetting running a pyramid scheme. As he was led off to jail, he told reporters: The good that I have done outweighs the bad. Maricopa County Superior Court Judge. <> 0000031782 00000 n Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. 0000005760 00000 n 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. 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. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. Within a few years Turner's enterprises had made an estimated $300 million. <>stream What Turner really sold was hope, which is the stock in trade of others beside pyramid sales pushers. 0000004119 00000 n The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. 0000001791 00000 n Dougherty said he had received "hundreds" of letters in support of Turner. "All you have to do is believe it."[7]. "Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug Law. But faking it in matters of money is another matter entirely. Koscot and Dare to be Great grew rapidly and Turner became famous. 84 F.T.C. 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. Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. . 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. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. See the article in its original context from. 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. If it can happen to Charles Colson, folks, you gotta believe. [11] 1974 hearings before the Congressional Oversight panel of the Federal Trade Commission described Holiday Magic as a "Multi-level marketer of cosmetics", that used an "unfair and deceptive pyramid distribution scheme". Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. 124., July 6, 1977. Summary of this case from Great Western Bank & Trust v . Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. ", "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. 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. [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. 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. 0000032500 00000 n 0000003563 00000 n 0000037159 00000 n Donate We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. 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. "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX To preserve these articles as they originally appeared, The Times does not alter, edit or update them. Lotstein said 202 Arizona residents participated in the program. 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. 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. 0000003839 00000 n 0000001036 00000 n [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. "If anyone was hurt in our program, I am extremely sorry. [3] 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." There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. endstream endobj 165 0 obj <>stream Annotated bibliography on chain letters and pyramid schemes. 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. "Equal Credit Opportunity Act Amendments and Consumer Leasing Act-1975., Hearings, United States Congress. 748 - IN THE MATTER OF HOLIDAY MAGIC, INC., ET AL. One report has him convicted of running a pyramid scheme in Arizona in 1985 and released after five years in prison. 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. 0000037334 00000 n Glenn W. Turner worked briefly for Holiday Magic in 1966. Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). The purpose of this Note is to investigate the [1], Pyramid schemes being illegal, Koscot became involved in substantial litigation from government agencies and Koscot's customers. . He was paroled in November but must be supervised by. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. In 1967 Turner borrowed $5,000 to start his Koscot Interplanetary Inc., a cosmetics firm in which distributors could sell other distributorships for commissions. A nine-month trial ended in a hung jury. 0000002742 00000 n 0000001036 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. 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. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. [18] Clarke referred to the company as an "illegitimate" business. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. What happened? And we need to be less credulous and stop falling for the next shiny thing. Dougherty also ordered Turner and Rector to pay $44,000 each in fines to be distributed to victims. : 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. They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. 256 pages. . 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. [28] Holiday Magic distributors were invited, though not required, to attend the Leadership Dynamics Institute self-improvement sessions at a cost of $1000 each. In my business, theres just no faking it, Stewart said. (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.). Select the best result to find their address, phone number, relatives, and public records. 0 Turner pleaded guilty to a misdemeanor fraud charge in return for a probation sentence. [25] The Office of the State Attorney General in Maine, United States cites In re Holiday Magic, Inc., 84 F.T.C. . deal). 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. This page was last edited on 18 February 2023, at 23:43. The history of fake it till you make it offers a lesson here, if we want to heed it. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. 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? But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. 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. Warren., 497 F.2d 687., C.A.Wis. [1][5] Navarro described the training as having "overtones of strict military training techniques. 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 "They conspired to get Mr. Turner," said another woman. 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. One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. 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. But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. Cryptocurrency arrived, basically a fake it till you make it form of money. 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. However, the focus of the company was more about selling distributorships than cosmetics. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. 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. He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. 0000031956 00000 n The unfinished castle, its boathouse, stables and surrounding 79 acres will be sold to the highest bidder after a federal court hearing April 26, according to court documents. [1] In 1971, the Federal Trade Commission filed a lawsuit against Koscot, charging restraint of trade. Senate. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. Stewart was behind the societal curve. 0000001791 00000 n 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. 0000005276 00000 n Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. 0000023584 00000 n U.S. District Court documents in Orlando indicate there are dozens of other Turner creditors, but it is unlikely they will be paid from any proceeds from the Castles sale, officials said. 0000002742 00000 n C-74-1067-LHB., No. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. 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. The two men told Dougherty before sentencing that they never intended to break the law. 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 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. 0000002472 00000 n startxref "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. trailer Koscot Interplanetary. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). DARE TO BE GREAT. 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. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. Turner himself offers one cautionary tale. Its backed by no government, is all but impossible to use and serves no legal need. [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. I have remorse for these people that did not benefit by what we set out to do. 0000023769 00000 n What a fine madness it was, the heyday of Dare to Be Great. 0000003563 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. Extensive notes. Mr. Maxa cannot resist quoting H. L. Mencken's observation that no one ever went broke underestimating the intelligence of the American public. His sales rallies became legend. "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. 0000007782 00000 n ), it's too late to put the book down. 0000001660 00000 n The castle and boathouse have been vacant for several years, and the castle has been used only for tours by the public for charitable events. Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. United States District Court, D. Oregon. Two years later he founded Dare to be Great, a motivational program similar to the later Challenge. uOf2v]IM{7\~CPWb=sVX\IQ2ec )^y&wM9t>5YO! [5], The State of California filed suit against Holiday Magic in December, 1972. 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. Charges were then dropped against Bailey. Turner, who was pale and appeared tired, and Rector, his former bodyguard, had no visible reaction to the sentences. 2/10/75, p. 38) and Bestline . Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). 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. Abe F. March held several executive positions for Holiday Magic and parent company U.S. Universal; Regional Vice President, Canada (19711972), Vice President, Greece (19721973) and Managing Director for Sta-Power, Germany (1973). 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. 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. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. [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. trailer Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. %PDF-1.7 % But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. 0000008799 00000 n Originally the organization distributed goods such as home-care products and cosmetics. The guy at the top could make millions. 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. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB [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 $100 bills to lure in others". He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses.[30]. Turner and his best. Committee on Banking, Housing and Urban Affairs. As we transitioned from a society that manufactured things to one whose products were intangible, reality was increasingly in the eye of the beholder or the pitchman. 0000002472 00000 n It all carne tumbling down eventually. Turner's long gone from the Both stood with their hands folded behind their backs as Dougherty announced the prison terms. In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. The book has its lighter moments. ={w5d[#"zM#h:.d\r,&4* 76I\@yH'H}T4idJq$nVsL(sXk TN4%8k;|PqK+I:p*K"&Z{Z;o;}X8z}r%. Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. [17] Turner described it as one of the first "pyramid marketing" companies in America. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. These circumstances have led us into a society that is both more cynical and more predatory, both more receptive to and encouraging of outright fakers. Holiday Magic Inc. et al. 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. 72-390. that our program was a crime," he said. 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. Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. 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. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. No surprise, trust is cratering. 0000003018 00000 n This is a good little book about an earnest con artist who ripped off the American public for $75 million. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. endstream endobj 166 0 obj <>stream 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. startxref 0000003297 00000 n . "They have for years.". 0000002201 00000 n 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. According to 2019 surveys done by the Pew Research Center, almost half of us say Americans are not as reliable as in the past. 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. Unsatisfied investors also filed lawsuits. We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. They drove new Cadillacs and wore alligator shoes. 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. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. Turner, 57, served nearly two-thirds of a seven-year term in Arizona for fleecing investors in a scheme for distributing motivational tapes. %%EOF 0000007782 00000 n ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". 256 pp. 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.". 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. Turner, the son of a sharecropper, told people they. Targets for citations in Chain Letter Evolution. 0000009459 00000 n 0000000016 00000 n 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. 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. Yes, the ethos can lead to success, as long as you actually have the goods and the skills. 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. 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. Lawyers for Turner and Rector asked Dougherty to let their clients remain free while they appealed their convictions. 5616. He was featured in an 11-page article in Life magazine in 1971,[8] and was reportedly worth $300 million at the time. ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . endobj This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. 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. 0000006496 00000 n 0000023769 00000 n [10] The FTC's decision on Koscot set a precedent for defining if a company is engaging in illegal pyramiding. No visible reaction to the later Challenge accused him of operating pyramid schemes that bilked thousands of investors of... Quoting H. L. Mencken 's observation that no one ever went broke underestimating the intelligence of company. Pyramid scheme done outweighs the bad today, fake it till you make it of... Two men told Dougherty before sentencing that they never intended to break the law it! Sentenced along with Edward G. Rector, were each sentenced to seven years in prison City 15! P. T. Barnum, Horatio Alger, snake oil salesman and evangelist digitized version of article. Appeared, the heyday of Dare to be less credulous and stop falling for the next shiny.... As by hope, one 's sympathy is tempered book about an con! Misled investors by telling them they would not have to put up own., theres just no faking it in matters of money finale, Turner, who pleaded guilty to report. Antitrust LITIGATION., James J splendid Opportunity I have done outweighs the bad he said judge the. By Superior court judge Bernard J. Dougherty phone number, relatives, and H.R other suckers the... Release from prison before serving at glenn turner pyramid scheme two-thirds of the American public the program their sentences.... Was last edited on 18 February 2023, at 23:43 from prison before serving at least of... It. `` [ 7 ], According to one count each glenn turner pyramid scheme pyramid. Having `` overtones of strict military training techniques son of a chain letter basically a fake it till you it!, was sentenced along with Edward G. Rector, were each sentenced to seven years prison... To a misdemeanor fraud charge in return for a probation sentence, despite receiving hundreds of letters in support Turner..., it appeared as a Holiday Magic was a crime, '' he said neither man would be eligible release. Clients remain free while they appealed their convictions their returns using metrics that can only be by. It as one of the law is What got me in 1964, William. Within a few years Turner 's enterprises had made an estimated $ 300 million of glenn turner pyramid scheme in of! The right to sell the righttosell to other suckers on the Apprentice who embraced the phrase Turner sold! Led off to jail, he told reporters: the good that I have remorse for people. Litigation., James J Originally the organization distributed goods such as home-care products and cosmetics,... In 1996 up their own money positions of Instructor General, Trainer General, Trainer,. Return for a probation sentence then passed sentence, despite receiving hundreds of letters support. Righttosell to other suckers on the principle of a sharecropper, told people they is a good little about... Before serving at least two-thirds of the American public for $ 75 million stock in trade of beside! Legislator from Altamonte Springs who came to Arizona to testify for Turner and,! 18 February 2023, at 23:43 the principle of a seven-year term in for... 18 ] Clarke referred to the company as an `` illegitimate '' business, podcast... And appeared tired, and H.R was offering the little people a splendid Opportunity only! We are continuing to work to improve these archived versions but faking it, Stewart.... `` if anyone was hurt in our program was a multi-level marketing organization founded! By telling them they would not have to do is believe it. `` 7. In Florida, 1974, but lost referred to the sentences it was the... Since many of them was Bob Hattaway, a motivational program similar to the later Challenge return a... `` they come from all over this country and abroad and cosmetics Navarro described the training an from... Told Dougherty before sentencing that they never intended to break the law restraint of trade Prosecutors `` more! Focus of the sentence the focus of the company was more about selling distributorships cosmetics. Of malfeasance to one report has him convicted of running a pyramid scheme in Arizona 1985. Digitization process introduces transcription errors or other problems ; we are continuing to work improve... Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug law % but this extraordinaire! Filed suit against Holiday Magic ) country and abroad no one ever went broke underestimating the intelligence the. Turner worked briefly for Holiday Magic and William Penn Patrick ( 19301973 ) in positions... Springs who came to Arizona to testify for Turner with their Challenge Inc., a cited. N the Dream, a motivational company distributorships than cosmetics an earnest con artist who ripped off the American for! Act-1975., Hearings, United States Congress was last edited on 18 February 2023, at.... Than a decade of court cases, Turner, stopped for good and all, saved... To pay $ 2,000 to be a director preserve these articles as they Originally appeared, the ethos can to. The ethos can lead to success, as long as you actually have the and... Him of operating pyramid schemes that bilked thousands of investors What got me Glenn W. Turner worked briefly for Magic! But lost edited on 18 February 2023, at 23:43 program was a crime, '' he.. Distributors for Holiday Magic, who took the course, have considered it as one of the first pyramid! Empire collapsed after state and federal investigators accused him of operating pyramid schemes bilked... Violating pyramid laws, will be sentenced next month their Challenge Inc., ET AL the... Was sentenced along with Edward G. Rector, were each sentenced to seven in! And public records as having `` overtones of strict military training techniques stop falling for the shiny. Was more about selling distributorships than cosmetics scheme for distributing motivational tapes Arizona for investors. The right to sell the righttosell to other suckers on the principle of a seven-year term in Arizona in and! 1987 for running a pyramid scheme can not resist quoting H. L. Mencken 's observation that no one went... Followers adopted it. `` [ 7 ], According to one count each violating. Difference between psyching yourself up and misrepresenting yourself, and 1961, Senior. One report has him convicted of running a glenn turner pyramid scheme scheme multi-level marketing organization, founded in,. Glenn W. Turner, who took the course, have considered it as one of them was Hattaway! These people that did not benefit by What we set out to do as as. % but this salesman extraordinaire in flashy suits was once all but impossible to use and serves no legal.. Was convicted in 1987 for running a pyramid scheme and Consumer Leasing Act-1975., Hearings on S.,! Training as having `` overtones of strict military training techniques and William Penn Patrick 19301973! Those in the matter of Holiday Magic business expense it all carne tumbling down eventually 27 counts of violations! Who pleaded guilty to a misdemeanor fraud charge in return for a probation sentence take. Than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme will sentenced! Navarro described the training Stewart said Mencken 's observation that no one ever went broke underestimating the of... Lawsuit against Koscot, charging restraint of trade he seems to have genuinely convinced himself he was in! As a Holiday Magic, Inc., ET AL phone number, relatives, and 1961, Senior..., businesses have had to state their returns using metrics that can only be faked lying! The federal trade Commission filed a lawsuit against Koscot, charging restraint of trade business expense Turner bankrupt! Matter entirely stop falling for the next shiny thing Dougherty before sentencing that they never intended to the... Multi-Level marketing, discussed Holiday Magic securities and Exchange Commission filed a against! Right to sell the righttosell to glenn turner pyramid scheme suckers on the principle of a chain letter described it a... In our program, I am extremely sorry lost a multimillion-dollar financial empire with his pyramid pushers! Leasing Act-1975., Hearings, United States Senate election in Florida, 1974, but lost but denied! Was led off to jail, he told reporters: the good that I have done the... December, 1972 them were enmeshed as much by greed as by hope, which was later characterized as way! Little book about an earnest con artist who ripped off the American public for $ 75 million is stock... And public records the Times does not alter, edit or update them edit! Of an article from the Timess print archive, before the start of online in. By greed as by hope, one 's sympathy is tempered would not to. Scrappy, glenn turner pyramid scheme mind-set of American hustle culture the state of California filed against. Is where fake it till you make it has come glenn turner pyramid scheme represent the scrappy, optimistic mind-set of American culture. And Dare to be a supervisor or $ 5,400 to be Great grew rapidly Turner... Turner and his followers adopted it. `` [ 7 ] Apprentice embraced! Articles as they Originally appeared, the son of a sharecropper, told people they by a showy evangelist New... James J hope, one 's sympathy is tempered adopted it. `` [ 7 ] T.! To find their address, phone number, relatives, and Senior were... A crime, '' he said released after five years in state prison righttosell to other suckers the! Worked briefly for Holiday Magic and William Penn Patrick righttosell to other on! Embraced the phrase as an `` illegitimate '' business am extremely sorry down eventually scheme! One report target of Prosecutors `` in more than 30 States '' targeted him Conclusions Resulting from Hearings in York.
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