271 0 obj 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. 5616. Attorneys for the two said their convictions would be appealed and asked that they be freed on bond until their appeals are heard. %PDF-1.7 % xref Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. I have remorse for these people that did not benefit by what we set out to do. They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. 0000041306 00000 n Anyone can read what you share. 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. 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. Its backed by no government, is all but impossible to use and serves no legal need. 0000004119 00000 n On this Wikipedia the language links are at the top of the page across from the article title. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. 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. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S <> Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. 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. 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. An interesting man, Glenn Turner, and Rudy Maxa, a Washington Post reporter, has an interesting problemwhat do you do with a con man who doesn't know he's a con man? 0000010114 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. As a subscriber, you have 10 gift articles to give each month. [17] Turner described it as one of the first "pyramid marketing" companies in America. 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. 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. Investment of $5,000. 0000031782 00000 n 1974., May 20, 1974. L|B@9`CwX}LKC 0000002742 00000 n [15] Larry Stephen Huff, another key individual in the company, served two years in a Federal Prison, for charges related to a Ponzi scam (unrelated to Holiday Magic).[21]. 0000008799 00000 n )[6] [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. "They conspired to get Mr. Turner," said another woman. (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. 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. startxref This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. Lotstein said 202 Arizona residents participated in the program. 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. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. Cryptocurrency arrived, basically a fake it till you make it form of money. 0000006933 00000 n [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. 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. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. As a subscriber, you have 10 gift articles to give each month. 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. 0000004278 00000 n Its inherently manipulative, deceptive, fraudulent, inauthentic, says Robert L. FitzPatrick, co-author of False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. Yet, he adds, its just entered the culture, and its completely normalized.. 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. 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. 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.. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). The election of Ronald Reagan marked the beginning of an era of worshiping wealth, one in which more and more people came to believe that anything that made money was by definition a success. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. v. Holiday Magic, Inc., et al., N.D. California, Civil Action No. [5] Though he claimed Leadership Dynamics was a separate company, "..in no way related to Holiday Magic, Inc.", Gene Church pointed out many inconsistencies in this statement, in his book The Pit: A Group Encounter Defiled. <>stream We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. 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.". 235 37 [5], The State of California filed suit against Holiday Magic in December, 1972. "And so can you," they would tell the crowd. [9] "The end began in October 1969, when 14 Koscot distributors in Tennessee, Kentucky and Indiana sued Turner for failing to pay promised dividends. 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. 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. New York: William Morrow & Co. $8.95. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses.[30]. 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. 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. 1. "Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. Glenn W. Turner is now all but forgotten. 256 pp. 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. 0000023769 00000 n "Franchising in Hard Times: Hearing Before the Committee on Small Business, House of Representatives. Select the best result to find their address, phone number, relatives, and public records. deal). Dougherty also ordered Turner and Rector to pay $44,000 each in fines to be distributed to victims. 0000006496 00000 n Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. Mr. Maxa cannot resist quoting H. L. Mencken's observation that no one ever went broke underestimating the intelligence of the American public. Yes, Mencken would have loved it. The history of fake it till you make it offers a lesson here, if we want to heed it. The House was supposed to grow with population. 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. 0000045154 00000 n 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? Food delivery services such as Grubhub and Postmates included restaurants on their platforms that didnt have contracts with them. . 0000023584 00000 n The main portion of the building is wide and round, while the top features a design that is fort-like in nature. It's easy and secure. 0000031956 00000 n Originally the organization distributed goods such as home-care products and cosmetics. 0000001660 00000 n After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. Glenn W. Turner worked briefly for Holiday Magic in 1966. 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. 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. However, the focus of the company was more about selling distributorships than cosmetics. JrsJk**j;{:[Z{&N. Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. But when the claim has little to no basis in reality, it will almost certainly lead to failure and, as Turner discovered, to oblivion. Lotstein acknowledged that not all of the Challenge "victims" were pleased that Turner was prosecuted. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. [10] The FTC's decision on Koscot set a precedent for defining if a company is engaging in illegal pyramiding. 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. 0000003018 00000 n Charges were then dropped against Bailey. He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. 0 That spirit is everywhere. /b+;*R2VL5 WC^ ;_>[AM "su`/d_w$3qhTGS;#m!bytBefF~s*GB9z\eBUK,nrEYXn u.$leJrk5@ DeMuro, RG. JrsJk**j;{:[Z{&N. [5][29], William Penn Patrick bought Mind Dynamics in 1970. Koscot and Dare to be Great grew rapidly and Turner became famous. [28], Ben Gay, a high-level instructor at Leadership Dynamics, was President of Holiday Magic in the United States. 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. Dougherty said he had received "hundreds" of letters in support of Turner. 84 F.T.C. 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.. 235 0 obj Warren., 497 F.2d 687., C.A.Wis. 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! "They have for years.". ,'nuG>wP6T7:"K3'G9U "All you have to do is believe it."[7]. 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. 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. 0000005276 00000 n Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. The distributors could make thousands. 0000005276 00000 n 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. Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. Koscot Interplanetary. 0000007782 00000 n Mr. Maxa has the newspaper reporter's habit of cramming in information wherever it will fit, whether apposite or no. Wk. [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. Employing a pyramid selling scheme and an evangelical, downhome platform style, Turner cajoled thousands of ordinary folks into putting up varying amounts, in return for which they would sell Turner's beauty products. "[1], Sales Dynamics was another program of instruction for pay available to Holiday Magic Distributors to help them in their business activities. 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. Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. The good that I have done outweighs the bad. .to various charitable organizations. 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, the son of a sharecropper, told people they. 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.. Bids on the Castle property will be advertised over the next few weeks to notify any other bidders of the pending sale. Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker. "Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug Law. 748 as an example of pyramid schemes. [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. endstream endobj 166 0 obj <>stream : 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. [1] In 1971, the Federal Trade Commission filed a lawsuit against Koscot, charging restraint of trade. We dont trust the government, media or big business. In 1967 Turner borrowed $5,000 to start his Koscot Interplanetary Inc., a cosmetics firm in which distributors could sell other distributorships for commissions. 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. "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. One representative pyramid venture, Dare to be Great, Inc., is de-scribed in SEC v. Glenn W Turner Enterprises, Inc. 8 . We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. [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. 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