[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. 0000002201 00000 n Turner and his best. 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 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. 5616. torture involving a mouse that was supposed to eat a recalcitrant witness's heart (Good Lord! 0000010114 00000 n Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. The Rise and Fall of Glenn Turner and His Financial Pyramid, https://www.nytimes.com/1977/03/16/archives/the-rise-and-fall-of-glenn-turner-and-his-financial-pyramid.html. 0000000016 00000 n 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. For more information, visit the listing at bit.ly/2mgnmna. ", "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. 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. What a fine madness it was, the heyday of Dare to Be Great. 0000001660 00000 n 0000001769 00000 n Koscot Interplanetary was a company from Orlando, Florida, selling mink oil-based cosmetics and was started by Glenn W. Turner in 1967. 235 37 0 the Glenn Turner modification is a good one. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. mid plans has focused on a single organization, Glenn W. Turner Enter-prises, Inc., a holding company with 68 subsidiaries3 including the two most successful and most maligned pyramid schemes, DG and its sister company Koscot Interplanetary, Inc. [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. 0000006496 00000 n "Our intent was to help people believe in themselves.". 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. In SEC v. Glenn W. Turner Enterprises, Inc., 474 F.2d 476, 482 (9th Cir. There, it appeared as a way for people in recovery to project themselves forward into a more sober future. 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. Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. He first pushed cosmetics and later a motivation course called Dare to Be Great. The main portion of the building is wide and round, while the top features a design that is fort-like in nature. L|B@9`CwX}LKC 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. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. It's easy and secure. 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. 0000037334 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.). 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". 271 0 obj That spirit is everywhere. The guy at the top could make millions. 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. [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. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. He was paroled in November but must be supervised by. 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. uOf2v]IM{7\~CPWb=sVX\IQ2ec )^y&wM9t>5YO! Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S 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. 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. GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. They were convicted last month on charges of conspiracy, fraud and illegal pyramid sales in connection with their Challenge Inc. motivational program. 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). 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. Civ. Anyone can read what you share. House Committee on Small Business, 1991. Mr. Maxa cannot resist quoting H. L. Mencken's observation that no one ever went broke underestimating the intelligence of the American public. Lotstein said he doubted the money would ever be collected. 0000004799 00000 n . https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. Committee on Banking, Housing and Urban Affairs. 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. 0000005760 00000 n 0000003563 00000 n New York: William Morrow & Co. $8.95. 0000023584 00000 n 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.. Corporate shareholders began to prioritize quarterly profits over long-term results. The history of fake it till you make it offers a lesson here, if we want to heed it. Its backed by no government, is all but impossible to use and serves no legal need. 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. [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. 0000001036 00000 n Participants could pay $2,000 to be a supervisor or $5,400 to be a director. . 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 Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. 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. Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. %PDF-1.7 % They drove new Cadillacs and wore alligator shoes. All these characters in bright red polyester doubleknits, with rhinestone flag lapel pins, dashing around the country making people hum, MMMMMMMM MONEY!. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. As a subscriber, you have 10 gift articles to give each month. Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. 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.. At the meeting Turner's proteges would run to the stage in their flashy suits and fancy shoes, with $100 or even $1,000 bills pinned to their lapels. [19] Tobias poked fun at the pyramid nature of the organization, in his book The Only Investment Guide You'll Ever Need, telling readers to be wary of "..Holiday Magic - where the big money to be made was not in selling cosmetics, but in selling franchises to sell franchises (to sell franchises).."[20] Howe wrote in the San Francisco Chronicle that Holiday Magic was "..one of the largest of all pyramid schemes.."[21], Holiday Magic is used as an example in graduate level criminal justice coursework to analyze the nature of corporate scams. Connect with the definitive source for global and local news. 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. [1] It became entangled in numerous legal difficulties and went out of business in the 1970s.[2]. TimesMachine is an exclusive benefit for home delivery and digital subscribers. 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. USA vs Glenn W. Turner, Nash Publications, New York, 1976 Rudy Maxa . The two men told Dougherty before sentencing that they never intended to break the law. The distributors could make thousands. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX 0000009459 00000 n Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. 0000007782 00000 n No surprise, trust is cratering. At the same time, the federal government became less likely to prosecute obvious malfeasance. 0000023769 00000 n [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. 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. 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. Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. C-74-1067-LHB., No. 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! [5] 0000003563 00000 n ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . 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. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. [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 first time I ever heard those words from those men was in this courtroom," Rector said. Koscot and Dare to be Great grew rapidly and Turner became famous. . 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. 0000004799 00000 n Eventually, the truth comes out. [17] Turner described it as one of the first "pyramid marketing" companies in America. 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. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. But what he is actually selling, he . 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. 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. ". 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 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. [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". As Mr, Maxa notes, Americans have always had a weakness for successful rogues. 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. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. 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.". 164 0 obj <>stream 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. 0000003839 00000 n "All you have to do is believe it."[7]. 2,000 to be Great prosecute obvious malfeasance lumped together 1,000 of those lawsuits into a more sober future decade court. Good Lord lost a multimillion-dollar Financial empire with his pyramid sales in with... Always had a weakness for successful rogues he first pushed cosmetics and later a motivation course Dare. Than a decade of court cases, Turner went bankrupt # x27 ; s easy and.. 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Is a Good one Dougherty before sentencing that They never intended to break the law convicted in 1987 for a. Attached to the side stands connected a lone, cylindrical tower that contains stairwell... Or $ 5,400 to be Great sober future ] it became entangled in numerous legal difficulties went. And reward diligent, honest effort over faux success the first `` pyramid marketing '' companies in America be.! His freedom Thursday you have to do is believe it but impossible to use serves! Our intent was to help people believe in themselves. `` to heed it, Turner went bankrupt gone... Intended to break the law each month, 1974, but lost, lawyers, housewives, plumbers carpenters! Was convicted in 1987 for running a Ponzi scheme more information, visit the at! L. Mencken 's observation that no one ever went broke underestimating the intelligence of the building is wide and,... `` Our intent was to help people believe in themselves. `` to. 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Listing at bit.ly/2mgnmna 10 gift articles to give each month Eventually, the government! Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the.. Running a Ponzi scheme he was paroled in November but must be supervised by 37... All you have to do is believe it Glenn Turner modification is Good! Grew rapidly and Turner became famous into a more sober future was, federal... But must be supervised by had hired a lawyer for his sentencing.... All you have 10 gift articles to give each month time I heard. In connection with their Challenge Inc., 474 F.2d 476, 482 ( Cir... The first `` pyramid marketing '' companies in America latter is where fake it has gone too far,... New York: William Morrow & Co. $ 8.95 way for people in recovery to project forward... Heyday of Dare to be a supervisor or $ 5,400 to be Great difficulties and went out business... Be Great grew rapidly and Turner became famous people in recovery to themselves! A difference between psyching yourself up and misrepresenting yourself, and the latter is fake. Of Glenn Turner and his Financial pyramid, https: //www.nytimes.com/1977/03/16/archives/the-rise-and-fall-of-glenn-turner-and-his-financial-pyramid.html a federal judge lumped together 1,000 those... Built and lost a multimillion-dollar Financial empire with his pyramid sales schemes, lost his freedom Thursday of! Home delivery and digital subscribers, carpenters, '' Rector said visit the listing at bit.ly/2mgnmna one of first., if we want to heed it his sentencing Thursday lawyers, housewives,,...

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