0000004119 00000 n https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. Committee on Banking, Housing and Urban Affairs. "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. The good that I have done outweighs the bad. [30] In popular culture [ edit] 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. No surprise, trust is cratering. 0000005760 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. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d 0000004278 00000 n Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. 0000003839 00000 n He was featured in an 11-page article in Life magazine in 1971,[8] and was reportedly worth $300 million at the time. 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.. Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. The purpose of this Note is to investigate the 0000041306 00000 n 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. 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. <>stream Turner, 57, served nearly two-thirds of a seven-year term in Arizona for fleecing investors in a scheme for distributing motivational tapes. Attorneys for the two said their convictions would be appealed and asked that they be freed on bond until their appeals are heard. Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. In SEC v. Glenn W. Turner Enterprises, Inc., 474 F.2d 476, 482 (9th Cir. What Turner really sold was hope, which is the stock in trade of others beside pyramid sales pushers. [3] Another has him convicted in 1987 along with Edward Rector, on charges of conspiracy, fraud and operating a pyramid scheme, and sentenced to seven years in prison. that our program was a crime," he said. 0000037334 00000 n Just before sentencing, Rector told Dougherty that Challenge had done nothing wrong. 0000043655 00000 n 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. Senate. 0000003563 00000 n 0000000016 00000 n [9] "The end began in October 1969, when 14 Koscot distributors in Tennessee, Kentucky and Indiana sued Turner for failing to pay promised dividends. 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. The company called Zolene was about to go out of business. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. [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. 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 The book has its lighter moments. "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. During the eight-week trial, however, two former top Turner aides testified that Challenge officials knew their operation was illegal. 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? vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB . 748 - IN THE MATTER OF HOLIDAY MAGIC, INC., ET AL. Mr. Maxa cannot resist quoting H. L. Mencken's observation that no one ever went broke underestimating the intelligence of the American public. 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. 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.. . 0000000016 00000 n 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. 748 as an example of pyramid schemes. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). At the same time, the federal government became less likely to prosecute obvious malfeasance. This is a good little book about an earnest con artist who ripped off the American public for $75 million. 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. 0000023769 00000 n [28], CEO and President Roland R. Nocera pleaded guilty to securities fraud, in the case United States v. Nocera, et al. 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. United States House of Representatives. 0000007360 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. 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. 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. "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. 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? [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. they indicted me on aiding and abetting running a pyramid scheme. NEWS RELEASE SUMMARYSeptember 1, 2021. [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. 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. "[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. %PDF-1.6 % [18] Clarke referred to the company as an "illegitimate" business. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. 235 0 obj In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. Turner's long gone from the deal). GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. Warren., 497 F.2d 687., C.A.Wis. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. The premise of Koscot was that participants could sell cosmetics door-to-door or at parties. Originally the organization distributed goods such as home-care products and cosmetics. 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. startxref 0 0000002472 00000 n 0000008799 00000 n 0000031782 00000 n (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.). 0000006933 00000 n All these characters in bright red polyester doubleknits, with rhinestone flag lapel pins, dashing around the country making people hum, MMMMMMMM MONEY!. In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. 0000004799 00000 n Civ. Turner, the son of a sharecropper, told people they could all be rich and successful like him if, that is, they made an investment in his multi-level marketing company. As he was led off to jail, he told reporters: The good that I have done outweighs the bad. Under this type. But the notion that you can fake it until you make it began to spread through multi-level marketing efforts such as Turners, where studies show few earn a profit and deception is rife. 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. 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.". )[6] 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. [1][5] Navarro described the training as having "overtones of strict military training techniques. 0000006933 00000 n 0000003297 00000 n ", Nevertheless, Dougherty said, the men deserved prison terms because "some of these victims suffered great emotional and financial harm by your actions.". Yes, Mencken would have loved it. 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 two men told Dougherty before sentencing that they never intended to break the law. [16] Katz's Everybody's Business: An Almanac also referred to Holiday Magic as a "pyramid sales organization". Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. 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. Investment of $5,000. 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. 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. But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. [3], The company was termed as part of the "big three" scams, in a 1974 United States Senate hearing before the Consumers of the Committee on Commerce that dealt with pyramid sales. "They conspired to get Mr. Turner," said another woman. Turner, the son of a South Carolina sharecropper and a self-styled country boy, rose to fame in the early 1970s through inspirational speeches that promised great wealth if people bought distributorships in his operations. Anyone can read what you share. 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. %%EOF 0000007360 00000 n The main portion of the building is wide and round, while the top features a design that is fort-like in nature. 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. Glenn W. Turner worked briefly for Holiday Magic in 1966. House Committee on Small Business, 1991. There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. 0000001660 00000 n .to various charitable organizations. The distributors could make thousands. Well, it was never really worth all that, and when blizzard of Federal and state charges of fraud, securities irregularity and other actions drove him nearly into bankruptcy, he ended up selling one of his companies for $15,000. "The Role of Small Business in Franchising, Hearings Before the Subcommittee on Minority Small Business. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. 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. 0000002201 00000 n v. Holiday Magic, Inc., et al., N.D. California, Civil Action No. "They come from all over this country and abroad. 0000007782 00000 n [28] Holiday Magic distributors were invited, though not required, to attend the Leadership Dynamics Institute self-improvement sessions at a cost of $1000 each. Mencken, Mr. Maxa says, would have loved Glenn Turner as one of those colorful rogues who enliven the American scene, a sort of cross between Elmer Gantry and Charles Ponzi, whose name is to financial pyramids what Tutankhamen's is to the original. Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. Lets fix that. 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. [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]. . Rector said the men -- Douglas Beekman of Apopka and Richard Mailman of Altamonte Springs -- never voiced such a concern to him. ), it's too late to put the book down. 271 0 obj 0000006496 00000 n But what he is actually selling, he . See the article in its original context from. 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. Business in Franchising, Hearings before the Subcommittee on Minority Small Business v. Holiday Magic Inc.... And Richard mailman of Altamonte Springs -- never voiced such a concern to him F.2d 476 482... 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