The guy at the top could make millions. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. 0000007782 00000 n But what he is actually selling, he . 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. No. A nine-month trial ended in a hung jury. 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]. [6], In February 1973, Holiday Magic was sued for calumny by Avon Products. Sign up for a weekly roundup of thought-provoking ideas and debates. But Dougherty denied bond and ordered both men to begin serving their sentences immediately. 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. Morrow. TimesMachine is an exclusive benefit for home delivery and digital subscribers. 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.". 0 Even as she spoke, the housing bubble riven with fraud committed (and invited) by banks, ratings agencies, mortgage brokers and appraisers was growing bigger. 256 pages. JrsJk**j;{:[Z{&N. The distributors could make thousands. The company called Zolene was about to go out of business. "[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. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. 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. We are forever suspicious, convinced someone else wants to profit at our expense. I have often wondered if Amway distributors borrowed this terminology from Turners group, or was it Turner who confiscated these words and phrases from some Amway distributors? Kerns wrote. The book has its lighter moments. It is here that Mr. Maxa shows unusual ability to compress tedious and protracted legal wrangles (one trial lasted nine months) into an absorbing account. 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. New York: William Morrow & Co. $8.95. uOf2v]IM{7\~CPWb=sVX\IQ2ec )^y&wM9t>5YO! Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. Rector's only asset is his house, and his only income a $200-a-month military pension, the investigation found. [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. 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. 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. 0000002472 00000 n 0000003839 00000 n 5616. Summary of this case from Great Western Bank & Trust v . But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. . : 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. 0000000016 00000 n "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. 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. 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 For more information, visit the listing at bit.ly/2mgnmna. (Free Speech issue - dismissed), Juice Plus AKA National Safety Associates, European Grouping of Marketing Professionals, https://en.wikipedia.org/w/index.php?title=Holiday_Magic&oldid=1140202664, Companies based in San Rafael, California, Short description is different from Wikidata, All Wikipedia articles needing clarification, Wikipedia articles needing clarification from March 2009, Creative Commons Attribution-ShareAlike License 3.0, Holiday Magic, Inc. v. 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. 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, 57, served nearly two-thirds of a seven-year term in Arizona for fleecing investors in a scheme for distributing motivational tapes. 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. 0000002742 00000 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. Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. Turner, though, had hired a lawyer for his sentencing Thursday. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. "The first time I ever heard those words from those men was in this courtroom," Rector said. However, the focus of the company was more about selling distributorships than cosmetics. 0000004799 00000 n %PDF-1.7 % Turner, who was pale and appeared tired, and Rector, his former bodyguard, had no visible reaction to the sentences. xref He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. 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.. [5] There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". Box 1. "They come from all over this country and abroad. 0000041122 00000 n ={w5d[#"zM#h:.d\r,&4* 76I\@yH'H}T4idJq$nVsL(sXk TN4%8k;|PqK+I:p*K"&Z{Z;o;}X8z}r%. 0000041306 00000 n When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. 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. [28], CEO and President Roland R. Nocera pleaded guilty to securities fraud, in the case United States v. Nocera, et al. 0000003018 00000 n [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. 0000003297 00000 n 0000007360 00000 n 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. [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. . 0000001660 00000 n (unrelated to Holiday Magic). We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. 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. What Turner really sold was hope, which is the stock in trade of others beside pyramid sales pushers. 0000003563 00000 n 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". v. Holiday Magic, Inc., et al., N.D. California, Civil Action No. Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. 0000005760 00000 n Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. However from a technical perspective, there are differences in the way the two types of schemes operate. ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . "They conspired to get Mr. Turner," said another woman. 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. 0000006933 00000 n NEWS RELEASE SUMMARYSeptember 1, 2021. United States District Court, D. Oregon. "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. A list of over 350 print sources on paper chain letters and pyramid schemes. Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker. 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. 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. High by today's standards but even more powerful based on the times. Turner, imprisoned in Arizona prison for fraud, has owed the IRS millions of dollars in back taxes for more than a decade, and the agency has succeeded in foreclosure proceedings against the property in Seminole County. trailer The empire collapsed in the early 1970s when authorities accused Turner of violating laws against pyramid sales, in which investors at the top make a fortune and those who get in later lose money. But 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. TimesMachine is an exclusive benefit for home delivery and digital subscribers. Rector said the men -- Douglas Beekman of Apopka and Richard Mailman of Altamonte Springs -- never voiced such a concern to him. In 1979, his fortune gone, he attempted a comeback with another motivational company called Challenge, Inc.,[6] which led to more legal difficulties. Pyramid Schemes Versus Ponzi Schemes The labels Ponzi scheme and pyramid scheme are often used interchangeably to describe specific forms of investment fraud where sustainability depends on the influx of new "investors" to the scheme. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. Attorneys for the two said their convictions would be appealed and asked that they be freed on bond until their appeals are heard. 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. 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. 0000001791 00000 n 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. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. 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. <>stream 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. See the article in its original context from. 0000003297 00000 n The purpose of this Note is to investigate the 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. It all carne tumbling down eventually. That spirit is everywhere. The con artist became a business model, says Micki McGee, author of Self-Help, Inc. Its only in a market-worshiping economy that you can say defrauding people in the interest of profit would somehow be okay.. Turner had a talent for making people believe in him. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. In August 1972, he was charged with "86 counts of sale of unregistered securities and failing to register as a dealer". "[1], Sales Dynamics was another program of instruction for pay available to Holiday Magic Distributors to help them in their business activities. 0000037159 00000 n %PDF-1.7 % 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. "And so can you," they would tell the crowd. ", United States Congress, Select Committee on Narcotics Abuse and Control, 1977, P.53. By Rudy Maxa. "If anyone was hurt in our program, I am extremely sorry. [28] Holiday Magic distributors were invited, though not required, to attend the Leadership Dynamics Institute self-improvement sessions at a cost of $1000 each. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. It didnt. 0000002201 00000 n 11106 (1975). Ward, et al. He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. 0000031782 00000 n startxref [12] The indictment said that Bailey had appeared in a film made for Turner's organization and had appeared with Turner at several rallies. JrsJk**j;{:[Z{&N. 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. But faking it in matters of money is another matter entirely. This is a good little book about an earnest con artist who ripped off the American public for $75 million. 0000004278 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. 0 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. 0000004119 00000 n Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. 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. 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. 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. [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 1967 Turner borrowed $5,000 to start his Koscot Interplanetary Inc., a cosmetics firm in which distributors could sell other distributorships for commissions. the Glenn Turner modification is a good one. 1974., May 20, 1974. Annotated bibliography on chain letters and pyramid schemes. [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. Glenn W. Turner worked briefly for Holiday Magic in 1966. Unsatisfied investors also filed lawsuits. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. Corporate shareholders began to prioritize quarterly profits over long-term results. Turner and his best. Mr. Maxa has the newspaper reporter's habit of cramming in information wherever it will fit, whether apposite or no. They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. 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. 748 - IN THE MATTER OF HOLIDAY MAGIC, INC., ET AL. Lets fix that. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> Koscot was founded in 1967. 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