I didn't take it seriously because I was running for . 0000004799 00000 n What a fine madness it was, the heyday of Dare to Be Great. The IRS, which had a $15 million claim, has been awarded a judgment of $9.275 million, but appraisals put the value of the Turner property at $1 million to $2 million. [7] He told reporters as he was led away to jail: The good that I have done outweighs the bad. We dont trust the government, media or big business. : 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. Senate. For more information, visit the listing at bit.ly/2mgnmna. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. Some "schemes" are specifically developed to sidestep Pyramid Scheme legislation by offering a "product" or "service". Mr. Turner and Mr. Rechtor, who also received seven years, were. the Glenn Turner modification is a good one. Turner and his best. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. Yes, Mencken would have loved it. According to a presentence investigation, Turner, who has been living in North Carolina, is broke and has no assets or income. 0000037159 00000 n In 1975, Turner pleaded guilty to a single charge of violating securities laws and was given probation. 0000009459 00000 n They drove new Cadillacs and wore alligator shoes. 0000004119 00000 n 0000031956 00000 n startxref [28] Holiday Magic distributors were invited, though not required, to attend the Leadership Dynamics Institute self-improvement sessions at a cost of $1000 each. ", "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. 0000041306 00000 n 0000002201 00000 n DARE TO BE GREAT. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB 0000001791 00000 n 0000032500 00000 n 0000001769 00000 n Turner, 57, served nearly two-thirds of a seven-year term in Arizona for fleecing investors in a scheme for distributing motivational tapes. The guy at the top could make millions. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). [5] 271 0 obj Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. Glenn Turner was, as he liked to tell anyone within earshot of his pitch, sharecropper's son 'and a gradeschool dropout and had a harelip (albeit corrected by surgery) who had lifted himself. We are forever suspicious, convinced someone else wants to profit at our expense. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d [28], Ben Gay, a high-level instructor at Leadership Dynamics, was President of Holiday Magic in the United States. Cryptocurrency arrived, basically a fake it till you make it form of money. Turner, the son of a sharecropper, told people they. [1] To form the pyramids of success, many directors, larger numbers of supervisors, salespeople and still more customers were needed. 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. Participants could pay $2,000 to be a supervisor or $5,400 to be a director. 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.. v. Robert W. Warren et al. Committee on Banking, Housing and Urban Affairs. 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 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 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. 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. The saying became so pervasive in Amway that it would be the title of a 1980s expos by Phil Kerns. 0000031782 00000 n Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. xref 0000005760 00000 n On this Wikipedia the language links are at the top of the page across from the article title. 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. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. startxref ", United States Congress, Select Committee on Narcotics Abuse and Control, 1977, P.53. 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. 0000002472 00000 n The distributors could make thousands. 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. [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. 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. endstream endobj 165 0 obj <>stream Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). [2][vague] The organization was dissolved in 1974, subsequent to the death of Patrick in 1973. "[23] One of the Holiday Magic Inc. cases was also cited by The University of Chicago Law Review[24] and the Columbia Law Review. [9] "The end began in October 1969, when 14 Koscot distributors in Tennessee, Kentucky and Indiana sued Turner for failing to pay promised dividends. ". Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. 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. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. [28], CEO and President Roland R. Nocera pleaded guilty to securities fraud, in the case United States v. Nocera, et al. Oaks pleaded guilty last year to one felony count of operating an illegal pyramid scheme and agreed to testify against Turner and Rechtor. 164 0 obj <>stream https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. The history of fake it till you make it offers a lesson here, if we want to heed it. 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. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. 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. Lets fix that. 0000005276 00000 n (unrelated to Holiday Magic). 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. %PDF-1.6 % In my business, theres just no faking it, Stewart said. [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. 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. But when the claim has little to no basis in reality, it will almost certainly lead to failure and, as Turner discovered, to oblivion. 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. JrsJk**j;{:[Z{&N. Corporate shareholders began to prioritize quarterly profits over long-term results. 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. 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. endstream endobj 166 0 obj <>stream 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. %%EOF 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. 0000004119 00000 n 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. I have remorse for these people that did not benefit by what we set out to do. If it can happen to Charles Colson, folks, you gotta believe. But what he is actually selling, he . During the eight-week trial, however, two former top Turner aides testified that Challenge officials knew their operation was illegal. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. 256 pp. Turner, who was pale and appeared tired, and Rector, his former bodyguard, had no visible reaction to the sentences. "I think the court's ruling today put the final period in the final chapter of the book on Glenn Turner.". Even then, he never stopped explaining. Eventually, the truth comes out. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. 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." [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 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. 124., July 6, 1977. 0000006496 00000 n Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. [10] The FTC's decision on Koscot set a precedent for defining if a company is engaging in illegal pyramiding. Unfortunately, the multi-level cosmetic company became entangled in numerous legal difficulties and went out of business in the . . 0000003563 00000 n [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. 0000002742 00000 n L|B@9`CwX}LKC Glenn W. Turner, a farmboy who built and lost a multimillion-dollar financial empire with his pyramid sales schemes, lost his freedom Thursday. 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. [1], In 1974, after almost 10 years in operation and tied to pyramid schemes and controversy, both Leadership Dynamics and Mind Dynamics ceased operations. 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. In August 1972, he was charged with "86 counts of sale of unregistered securities and failing to register as a dealer". Rector's only asset is his house, and his only income a $200-a-month military pension, the investigation found. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. [16] Katz's Everybody's Business: An Almanac also referred to Holiday Magic as a "pyramid sales organization". 0000023769 00000 n Summary of this case from Great Western Bank & Trust v . [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. 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. 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. If he never quite tells us what made Glenn Turner runthat is was he a con artist or merely an overeupeptic free enterpriser?no one else knew either, including perhaps Turner. In the Arizona case, Turner represented himself -- a stark change from the days in the early '70s when renowned defense attorney F. Lee Bailey represented him in his Koscot dealings. 0000007782 00000 n 11106 (1975). But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. 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. 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. 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. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. [1] In 1971, the Federal Trade Commission filed a lawsuit against Koscot, charging restraint of trade. "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. [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. [1] It became entangled in numerous legal difficulties and went out of business in the 1970s.[2]. Turner pleaded guilty to a misdemeanor fraud charge in return for a probation sentence. TimesMachine is an exclusive benefit for home delivery and digital subscribers. The main portion of the building is wide and round, while the top features a design that is fort-like in nature. 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. )[6] Dougherty said he had received "hundreds" of letters in support of Turner. Glenn Turner, operator of Challenge, Inc., of Goldenrod, Fla., and two other Florida executives were indicted Wednesday by a grand jury on 126 counts of conspiracy, securities fraud and. 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 0000037159 00000 n 0000008799 00000 n 0 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. [1], Pyramid schemes being illegal, Koscot became involved in substantial litigation from government agencies and Koscot's customers. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. 0000003839 00000 n 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. Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> A nine-month trial ended in a hung jury. One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. the Glenn Turner modification is a good one. Lotstein acknowledged that not all of the Challenge "victims" were pleased that Turner was prosecuted. ", 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. Unsatisfied investors also filed lawsuits. In 1967 Turner borrowed $5,000 to start his Koscot Interplanetary Inc., a cosmetics firm in which distributors could sell other distributorships for commissions. 0000003018 00000 n 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]. Box 1. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. torture involving a mouse that was supposed to eat a recalcitrant witness's heart (Good Lord! Mr. Maxa has the newspaper reporter's habit of cramming in information wherever it will fit, whether apposite or no. 0000008424 00000 n By Rudy Maxa. 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. Two years later he founded Dare to be Great, a motivational program similar to the later Challenge. 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. GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. High by today's standards but even more powerful based on the times. 0000041122 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. According to 2019 surveys done by the Pew Research Center, almost half of us say Americans are not as reliable as in the past. He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. Turner would emerge under a banner reading "Dare to Be Great" and vacuum up money through a pyramid marketing scheme based on selling motivational tapes containing the secret of getting rich. 0000043655 00000 n He was paroled in November but must be supervised by. endobj He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. Corbins office won a civil case against Turner over Challenge in 1983, ordering him to pay $1.5 million in restitution and $1 million in penalties. Turner's long gone from the Investment of $5,000. Turner, though, had hired a lawyer for his sentencing Thursday. 0000031782 00000 n xref To preserve these articles as they originally appeared, The Times does not alter, edit or update them. Glenn W. Turner is now all but forgotten. 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. 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. Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. The two men told Dougherty before sentencing that they never intended to break the law. Even as Turner attracted increasingly negative attention in 1972, he was arrested on 86 counts of violating securities laws the phrase gained popularity in a more earnest context within Alcoholics Anonymous. Anyone can read what you share. Koscot Interplanetary was a company from Orlando, Florida, selling mink oil-based cosmetics and was started by Glenn W. Turner in 1967. As a subscriber, you have 10 gift articles to give each month. 0000008799 00000 n Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. Lotstein said 202 Arizona residents participated in the program. Sign up for a weekly roundup of thought-provoking ideas and debates. "Equal Credit Opportunity Act Amendments and Consumer Leasing Act-1975., Hearings, United States Congress. 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. 0000008424 00000 n Glenn W. Turner is now all but forgotten. "And so can you," they would tell the crowd. [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. . 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. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker. 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. 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. trailer %PDF-1.7 % Within a few years Turner's enterprises had made an estimated $300 million. The companies collapsed in 1973 under lawsuits filed by investors and investigations by state and federal agencies. <>stream 0000007360 00000 n 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. TimesMachine is an exclusive benefit for home delivery and digital subscribers. But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. The book has its lighter moments. [6], In February 1973, Holiday Magic was sued for calumny by Avon Products. Mr. Maxa cannot resist quoting H. L. Mencken's observation that no one ever went broke underestimating the intelligence of the American public. Extensive notes. 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. [22] According to the Duke Law Journal: "Illegality permeated every facet of the promotion of the Holiday Magic marketing program. As he was led off to jail, he told reporters: The good that I have done outweighs the bad. Told reporters: the good that I have done outweighs the bad this! N 0000002201 00000 n a technicality of the promotion of the Holiday Magic was sued for by!, before the start of online publication in 1996 report target of prosecutors `` in than. Great Western Bank & amp ; trust v letters in support of Turner. `` benefit. Became entangled in numerous legal difficulties and went out of business in the positions of Instructor General, and.... 483, 1900, 1927, and Rector, were each sentenced to seven years in prison... For these people that did not benefit by what we set out to do does not alter, edit update. Trust the government, media or big business people that did not benefit by what set... 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