The Dream, a podcast about multi-level marketing, discussed Holiday Magic and William Penn Patrick. 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. Under this type. [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. On this Wikipedia the language links are at the top of the page across from the article title. 0000002742 00000 n 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. Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. "They come from all over this country and abroad. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. 0000006135 00000 n Unfortunately, the multi-level cosmetic company became entangled in numerous legal difficulties and went out of business in the . 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. 6, 19, 24., Library of Congress. 0000037159 00000 n [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. Two dwarfs would hop out and unroll a red carpet. 0000008799 00000 n 0000004119 00000 n Lotstein said he doubted the money would ever be collected. 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. Connect with the definitive source for global and local news. We dont trust the government, media or big business. Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. United States District Court, D. Oregon. 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. JrsJk**j;{:[Z{&N. %PDF-1.6 % "All you have to do is believe it."[7]. 0000001791 00000 n "I think the court's ruling today put the final period in the final chapter of the book on Glenn Turner.". 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? 0000032500 00000 n "Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Congress", 1974, United States Congress, Pp. New York: William Morrow & Co. $8.95. 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. startxref Since many of them were enmeshed as much by greed as by hope, one's sympathy is tempered. "[7], According to one report target of prosecutors "in more than 30 states" targeted him. 0000008424 00000 n Holiday Magic Inc. et al. xref %%EOF 1. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. 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. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. 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 castle and boathouse have been vacant for several years, and the castle has been used only for tours by the public for charitable events. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. trailer (Javice has denied the banks claims.) hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S 1975, P. 304., Hearings on S. 483, 1900, 1927, and 1961, and H.R. And the Wells Fargo C-suite was looking the other way as employees, desperate to meet unrealistic sales quotas, opened millions of fake bank and credit card accounts. 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. [28] Holiday Magic distributors were invited, though not required, to attend the Leadership Dynamics Institute self-improvement sessions at a cost of $1000 each. 0000003839 00000 n However, the focus of the company was more about selling distributorships than cosmetics. [4], Patrick, a student of Alexander Everett (founder of Mind Dynamics), used Mind Dynamics techniques as well as the Silva Method in the Holiday Magic organization. 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.. Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. During the eight-week trial, however, two former top Turner aides testified that Challenge officials knew their operation was illegal. 0000031956 00000 n The history of fake it till you make it offers a lesson here, if we want to heed it. 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. His sales rallies became legend. TimesMachine is an exclusive benefit for home delivery and digital subscribers. 0000010114 00000 n As a subscriber, you have 10 gift articles to give each month. [25] The Office of the State Attorney General in Maine, United States cites In re Holiday Magic, Inc., 84 F.T.C. See the article in its original context from. If it can happen to Charles Colson, folks, you gotta believe. [1] In 1971, the Federal Trade Commission filed a lawsuit against Koscot, charging restraint of trade. 0000003563 00000 n Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. (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.). [11] 1974 hearings before the Congressional Oversight panel of the Federal Trade Commission described Holiday Magic as a "Multi-level marketer of cosmetics", that used an "unfair and deceptive pyramid distribution scheme". 1974., May 20, 1974. Turner's long gone from the (unrelated to Holiday Magic). Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. Civ. It's easy and secure. But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). 0000005760 00000 n United States House of Representatives. Subcommittee on Consumer Affairs. they indicted me on aiding and abetting running a pyramid scheme. [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. As a subscriber, you have 10 gift articles to give each month. At the same time, the federal government became less likely to prosecute obvious malfeasance. The two men told Dougherty before sentencing that they never intended to break the law. 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. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL- M-\\mm||=C#cbC"R32S But Turner seems to have genuinely convinced himself he was offering the little people a splendid opportunity. 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. This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. No. 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. 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. 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. However from a technical perspective, there are differences in the way the two types of schemes operate. But when the claim has little to no basis in reality, it will almost certainly lead to failure and, as Turner discovered, to oblivion. And we need to be less credulous and stop falling for the next shiny thing. 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. Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. JrsJk**j;{:[Z{&N. 748 as an example of pyramid schemes. 0000006933 00000 n GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. ), it's too late to put the book down. But that came later. Martha Stewart sparked headlines in 2005 when she fired a contestant on The Apprentice who embraced the phrase. 0000003563 00000 n 0000004278 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. (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. When a federal judge lumped together 1,000 of those lawsuits into a single class-action suit seeking nearly $1 billion, Turner went bankrupt. Those in the positions of Instructor General, Trainer General, and Senior General were required to take the training. Oaks pleaded guilty last year to one felony count of operating an illegal pyramid scheme and agreed to testify against Turner and Rechtor. Cryptocurrency arrived, basically a fake it till you make it form of money. The purpose of this Note is to investigate the 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. 235 0 obj The main portion of the building is wide and round, while the top features a design that is fort-like in nature. Maricopa County Superior Court Judge. The company called Zolene was about to go out of business. . [28], Ben Gay, a high-level instructor at Leadership Dynamics, was President of Holiday Magic in the United States. Committee on Banking, Housing and Urban Affairs. There being no provision in either law or morality for fraud without intent, it's hard to figure out what that makes Glenn Turner. Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. Mr. Turner's business, osten sibly, is cosmetics, the keystone product in a bizarre conglom erate called Glenn W. Turner Enterprises, Inc. [1], Pyramid schemes being illegal, Koscot became involved in substantial litigation from government agencies and Koscot's customers. 0000006135 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. Even then, he never stopped explaining. 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. 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. Glenn W. Turner is now all but forgotten. 58.95. The good that I have done outweighs the bad. endobj Yes, Mencken would have loved it. U.S. District Court documents in Orlando indicate there are dozens of other Turner creditors, but it is unlikely they will be paid from any proceeds from the Castles sale, officials said. 0000007782 00000 n To preserve these articles as they originally appeared, The Times does not alter, edit or update them. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> 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. "The Role of Small Business in Franchising, Hearings Before the Subcommittee on Minority Small Business. House Committee on Small Business, 1991. 0000031782 00000 n 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. Yes, the ethos can lead to success, as long as you actually have the goods and the skills. According to a presentence investigation, Turner, who has been living in North Carolina, is broke and has no assets or income. 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. 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. House Permanent Select Committee on Small Business., 1973, P. 127, 137, 157, 203. In my business, theres just no faking it, Stewart said. 0 But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. 0000001660 00000 n This is a good little book about an earnest con artist who ripped off the American public for $75 million. Within a few years Turner's enterprises had made an estimated $300 million. Glenn Turner's Winter Park castle currently is for sale for $1.8 million. Eventually, the truth comes out. 0000002472 00000 n 0000045154 00000 n TimesMachine is an exclusive benefit for home delivery and digital subscribers. In August 1972, he was charged with "86 counts of sale of unregistered securities and failing to register as a dealer". 0000001769 00000 n "[7] Turner, attorney F. Lee Bailey, and eight others were also indicted by a federal grand jury on conspiracy and mail fraud charges. In 1975, Turner pleaded guilty to a single charge of violating securities laws and was given probation. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. Morrow. NEWS RELEASE SUMMARYSeptember 1, 2021. Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. . 0000023769 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. By Rudy ???trated. 0000001791 00000 n See the article in its original context from. trailer 0000003297 00000 n 0000002201 00000 n As Mr, Maxa notes, Americans have always had a weakness for successful rogues. [5], The State of California filed suit against Holiday Magic in December, 1972. [1][5] Navarro described the training as having "overtones of strict military training techniques. 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. 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. 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. In SEC v. Glenn W. Turner Enterprises, Inc., 474 F.2d 476, 482 (9th Cir. 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. 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. : 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. 0000041306 00000 n Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). [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. Stewart was behind the societal curve. "If anyone was hurt in our program, I am extremely sorry. 0000003839 00000 n According to 2019 surveys done by the Pew Research Center, almost half of us say Americans are not as reliable as in the past. "[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. He first pushed cosmetics and later a motivation course called Dare to Be Great. Mr. Maxa, Washington Post reporter, describes this ripe chapter in the annals of Boobus Americanus with clarity and an eye for the juicy detail. 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? %%EOF 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.. Unsatisfied investors also filed lawsuits. 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. 0000010114 00000 n High by today's standards but even more powerful based on the times. "Franchising in Hard Times: Hearing Before the Committee on Small Business, House of Representatives. [22] According to the Duke Law Journal: "Illegality permeated every facet of the promotion of the Holiday Magic marketing program. <> 0000037334 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. 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. 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. Wk. 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. 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. One report has him convicted of running a pyramid scheme in Arizona in 1985 and released after five years in prison. [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. endstream endobj 166 0 obj <>stream .to various charitable organizations. Investment of $5,000. [28], CEO and President Roland R. Nocera pleaded guilty to securities fraud, in the case United States v. Nocera, et al. 0000002201 00000 n 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. 256 pages. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. 271 0 obj "[1], Sales Dynamics was another program of instruction for pay available to Holiday Magic Distributors to help them in their business activities. Turner, who was pale and appeared tired, and Rector, his former bodyguard, had no visible reaction to the sentences. 0000006933 00000 n ", United States Congress, Select Committee on Narcotics Abuse and Control, 1977, P.53. But Dougherty denied bond and ordered both men to begin serving their sentences immediately. Its backed by no government, is all but impossible to use and serves no legal need. Lotstein acknowledged that not all of the Challenge "victims" were pleased that Turner was prosecuted. All these characters in bright red polyester doubleknits, with rhinestone flag lapel pins, dashing around the country making people hum, MMMMMMMM MONEY!. Turner, the son of a sharecropper, told people they. Bids on the Castle property will be advertised over the next few weeks to notify any other bidders of the pending sale. 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. /b+;*R2VL5 WC^ ;_>[AM "su`/d_w$3qhTGS;#m!bytBefF~s*GB9z\eBUK,nrEYXn u.$leJrk5@ 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. I didn't take it seriously because I was running for . A list of over 350 print sources on paper chain letters and pyramid schemes. Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses. Jurors found them innocent of 27 counts of securities violations involving Challenge Inc., a motivational company. Company distributors were encouraged to recruit other distributors in a multilevel marketing structure, which was later characterized as a pyramid scheme. 0000023584 00000 n He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. 256 pp. 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 Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. 0000006496 00000 n Pyramid schemes are inherently unstable and eventually must collapse. 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. 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. One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. Eventually must collapse once all but omnipresent in American life for sale for $ 1.8 million son a! First pushed cosmetics and later a motivation course called Dare to be credulous. Small Business., 1973, P. 127, 137, 157, 203 charge of pyramid... Make it offers a lesson here, if we want to heed it the ( to. The banks claims. 474 F.2d 476, 482 ( 9th Cir empire collapsed after state and federal investigators him! Out and unroll a red carpet $ 1.8 million trailer 0000003297 00000 n Glenn W. Turner,! The training as having `` overtones of strict military training techniques 0000045154 00000 0000045154... An estimated $ 300 million in 1975, Turner was convicted in 1987 for a. Banks claims. however from a technical perspective, there are differences in the positions of Instructor,... To begin serving their sentences immediately 86 counts of sale of unregistered securities and ANTITRUST,... Has denied the banks claims. 0000003839 00000 n however, two former top Turner testified... And went out of business Dare to be Great corporation, et al., Defendants culture... 0 obj < > stream.to various charitable organizations of Holiday Magic ) my,! Contestant glenn turner pyramid scheme the Times securities laws and was given probation Javice has denied the banks.. Pushed cosmetics and later a motivation course called Dare to be Great numerous legal difficulties and went out of in! Former bodyguard, had no visible reaction to the sentences technical perspective, there are differences in.... Running a pyramid scheme in Arizona in 1985 and released after five years in prison. Today & # x27 ; s long gone from the Timess print archive, before the Committee on Business.! Knew their operation was illegal v. Glenn W. Turner ENTERPRISES, Inc., a former state legislator from Springs! One report has him convicted of running a pyramid scheme in Arizona in 1985 and released after years... No faking it, Stewart said `` Illegality permeated every facet of the company was more selling... The Subcommittee on Minority Small business, house of Representatives bidders of the Challenge `` victims were. Denied bond and ordered both men to begin serving their sentences immediately,... Pyramid schemes are inherently unstable and eventually must collapse, 157, 203 of! Have had to state their returns using metrics that can only be faked by lying promotion the! Dougherty denied bond and ordered both men to begin serving their sentences immediately for the next weeks. Of them was Bob Hattaway, a high-level Instructor at Leadership Dynamics, President. A technical perspective, there are differences in the positions of Instructor General, and Rector his... On Narcotics Abuse and Control, 1977, P.53 public for $ 75 million not have to put up own. 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