Glenn W. Turner is now all but forgotten. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. 256 pp. But that came later. Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX 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. "Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug Law. But what he is actually selling, he . 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. v. Robert W. Warren et al. Just before sentencing, Rector told Dougherty that Challenge had done nothing wrong. 0000001769 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. 0000032500 00000 n
Mr. Maxa has missed very little about Turner's operations and the soueces of his appeal. 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. vlyiJ)pd*n\[PN>8Yl^1cyO"`CC\=bu3hB
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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. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. Holiday Magic was a multi-level marketing organization, founded in 1964, by William Penn Patrick (19301973) in the United States. 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. But when the claim has little to no basis in reality, it will almost certainly lead to failure and, as Turner discovered, to oblivion. Ward, et al. Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. Glenn W. Turner is now all but forgotten. 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. .to various charitable organizations. 0000003563 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. 0000002742 00000 n
On this Wikipedia the language links are at the top of the page across from the article title. 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. A nine-month trial ended in a hung jury. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. Senate. And as Turner understood, making lots of money will get you almost anything, including an invitation to lecture at the Harvard Business School. 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. 0000005276 00000 n
A group of a half-dozen former Challenge participants, who would not give their names, said after the sentencing that Turner and Rector did nothing wrong. [25] The Office of the State Attorney General in Maine, United States cites In re Holiday Magic, Inc., 84 F.T.C. 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. Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. 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). Turner, though, had hired a lawyer for his sentencing Thursday. Glenn Turner's Winter Park castle currently is for sale for $1.8 million. 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. [28] The Mind Dynamics course was described as providing "a means of achieving personal success through the conscious use of the subconscious mind". endobj 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. 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. [16] Katz's Everybody's Business: An Almanac also referred to Holiday Magic as a "pyramid sales organization". As a subscriber, you have 10 gift articles to give each month. 0000003839 00000 n
235 37 The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. endstream
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torture involving a mouse that was supposed to eat a recalcitrant witness's heart (Good Lord! <> Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. 0000037334 00000 n
In 1967 Turner borrowed $5,000 to start his Koscot Interplanetary Inc., a cosmetics firm in which distributors could sell other distributorships for commissions. But faking it in matters of money is another matter entirely. In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. He seems to have been equal parts P. T. Barnum, Horatio Alger, snake oil salesman and evangelist. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. [5] 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. Wk. ", "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. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). Dougherty also ordered Turner and Rector to pay $44,000 each in fines to be distributed to victims. 0000006933 00000 n
5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d
There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. Some "schemes" are specifically developed to sidestep Pyramid Scheme legislation by offering a "product" or "service". 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. 0000006496 00000 n
Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. What a fine madness it was, the heyday of Dare to Be Great. "All you have to do is believe it."[7]. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. The House was supposed to grow with population. 235 0 obj Charges were then dropped against Bailey. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. . 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. 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. 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. 0000009459 00000 n
The companies collapsed in 1973 under lawsuits filed by investors and investigations by state and federal agencies. As Elizabeth Holmes gives way to Sam Bankman-Fried, who gives way to George Santos, its worth pondering why our society has embraced an ethos popularized by a huckster such as Turner. Civ. Eventually, the truth comes out. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. 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. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. But the real bait was the right to sell the righttosell to other suckers on the principle of a chain letter. 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. Cryptocurrency arrived, basically a fake it till you make it form of money. At the same time, the federal government became less likely to prosecute obvious malfeasance. One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. 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. 0000041122 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. He first pushed cosmetics and later a motivation course called Dare to Be Great. He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. Even then, he never stopped explaining. 235 0 obj ". 271 0 obj Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. trailer they indicted me on aiding and abetting running a pyramid scheme. 0000005760 00000 n
"Our intent was to help people believe in themselves.". According to 2019 surveys done by the Pew Research Center, almost half of us say Americans are not as reliable as in the past. One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. 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. Koscot Interplanetary was a company from Orlando, Florida, selling mink oil-based cosmetics and was started by Glenn W. Turner in 1967. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. 0000000016 00000 n
But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. Originally the organization distributed goods such as home-care products and cosmetics. 235 37 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. Turner and his best. 0 0000010114 00000 n
Lotstein said he doubted the money would ever be collected. 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. 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. 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. Some of the most famous pyramid schemes in U.S. history. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL-
M-\\mm||=C#cbC"R32S He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. 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. 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 up by his expensive unborncalfskin bootstraps to the leadership of a $100 million business empire. 0000008799 00000 n
"I think the court's ruling today put the final period in the final chapter of the book on Glenn Turner.". See the article in its original context from. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. [7] He told reporters as he was led away to jail: The good that I have done outweighs the bad. Attorneys for the two said their convictions would be appealed and asked that they be freed on bond until their appeals are heard. 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. 0000031782 00000 n
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. 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.. 0000007782 00000 n
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. While prosecutors and defense attorneys haggled over legal issues for an hour before the sentencing, Turner, wearing a blue suit, boots and a shirt with a wrinkled collar, yawned and winked at more than 20 friends and supporters in the courtroom. 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. [9] The FTC found that Holiday Magic was in violation of section 5 of the Federal Trade Commission Act, and section 2 (a) of the Clayton Antitrust Act. 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. Its backed by no government, is all but impossible to use and serves no legal need. Targets for citations in Chain Letter Evolution. xref Glenn W Turner, who started in Network Marketing in the late 60s and you will be blown away by the income earnings that he shares from that time. startxref 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. 0000003018 00000 n
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Bids on the Castle property will be advertised over the next few weeks to notify any other bidders of the pending sale. 271 0 obj The distributors could make thousands. Pyramid schemes are inherently unstable and eventually must collapse. <>stream
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Investment of $5,000. It didnt. startxref [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. 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. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. The two men told Dougherty before sentencing that they never intended to break the law. 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. Participants could pay $2,000 to be a supervisor or $5,400 to be a director. "They have for years.". 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. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> ={w5d[#"zM#h:.d\r,&4*
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GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. Donate [1], Pyramid schemes being illegal, Koscot became involved in substantial litigation from government agencies and Koscot's customers. 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. Box 1. 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. 72-390. Lets fix that. The history of fake it till you make it offers a lesson here, if we want to heed it. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. Just before he was sentenced, Turner told Maricopa County Superior Court Judge Bernard Dougherty, "My intent has never been to hurt but to help. <> . Sign up for a weekly roundup of thought-provoking ideas and debates. "They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. 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. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. Food delivery services such as Grubhub and Postmates included restaurants on their platforms that didnt have contracts with them. United States House of Representatives. His sales rallies became legend. 0000001769 00000 n
58.95. By Rudy Maxa. (Javice has denied the banks claims.) I have remorse for these people that did not benefit by what we set out to do. It's easy and secure. 2/10/75, p. 38) and Bestline . 0000007782 00000 n
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. . %%EOF However, the focus of the company was more about selling distributorships than cosmetics. endstream
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"Challenge had a positive effect on all of our lives," said one woman who was crying in the hallway outside the courtroom. . The Arizona case marked the first felony conviction for Turner, who built a fortune around his Orlando-based pyramid sales 20 years ago. 0000002472 00000 n
Glenn W. Turner worked briefly for Holiday Magic in 1966. [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. 164 0 obj
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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. [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. 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. Unsatisfied investors also filed lawsuits. 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. "If anyone was hurt in our program, I am extremely sorry. 0000045154 00000 n
Connect with the definitive source for global and local news. All these characters in bright red polyester doubleknits, with rhinestone flag lapel pins, dashing around the country making people hum, MMMMMMMM MONEY!. 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. As Mr, Maxa notes, Americans have always had a weakness for successful rogues. DeMuro, RG. 0000007360 00000 n
DARE TO BE GREAT. "They conspired to get Mr. Turner," said another woman. 0000005276 00000 n
Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. 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 sentencing of Dare to be Great supersalesman Glenn Turner, convicted of operating an illegal pyramid scam in Arizona, has been delayed for a week. . We are forever suspicious, convinced someone else wants to profit at our expense. Turner, 57, served nearly two-thirds of a seven-year term in Arizona for fleecing investors in a scheme for distributing motivational tapes. [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. Turner, the son of a sharecropper, told people they. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. trailer And we need to be less credulous and stop falling for the next shiny thing. 0000008799 00000 n
New York: William Morrow & Co. $8.95. Lotstein said 202 Arizona residents participated in the program. As he was led off to jail, he told reporters: The good that I have done outweighs the bad. "[23] One of the Holiday Magic Inc. cases was also cited by The University of Chicago Law Review[24] and the Columbia Law Review. Committee on Banking, Housing and Urban Affairs. 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. What does it mean for a nation to valorize faking it as a means to an end and is there any way for Americans to turn back? Turner's fame and wealth was to be an inspiration for others to buy franchises so that "they could all be rich and successful like him". Z t{Hd)a^lEHuw-GB9Y/S5zcWC8,)X9W^kjx,:h*#H_TNG^Od
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(unrelated to Holiday Magic). What Turner really sold was hope, which is the stock in trade of others beside pyramid sales pushers. 0000003839 00000 n
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84 F.T.C. Mr. Turner and Mr. Rechtor, who also received seven years, were. ", United States Congress. 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. ", United States Congress, Select Committee on Narcotics Abuse and Control, 1977, P.53. ), it's too late to put the book down. By Rudy ???trated. This page was last edited on 18 February 2023, at 23:43. Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker. ", United States Congress. 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. ORLANDO, Fla. (AP) _ A three-story, 16-room castle owned by onetime motivational entrepreneur Glenn Turner is going on the auction block, with the Internal Revenue Service and other creditors splitting the proceeds. Dropping the creator of Dilbert is free speech at work, Ron DeSantis shows how not to run an education system, False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes. NEWS RELEASE SUMMARYSeptember 1, 2021. And investigations by state and federal investigators accused him of operating pyramid schemes that bilked of... To prosecute obvious malfeasance the Arizona case marked the first felony conviction for Turner marketing structure, which later... Fines to be Great would be appealed and asked that they never to. Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner Sanniti and Brooker... Each sentenced to seven years, were distributors in a fitting finale, Turner was convicted in 1987 running. 1.8 million support of Turner n 0000006933 00000 n Connect with the source. 'S Everybody 's Business: an Almanac also referred to Holiday Magic and William Patrick. 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