I have remorse for these people that did not benefit by what we set out to do. 0000006496 00000 n
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. Its backed by no government, is all but impossible to use and serves no legal need. Anyone can read what you share. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> 0000002201 00000 n
Turner himself offers one cautionary tale. [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. As we transitioned from a society that manufactured things to one whose products were intangible, reality was increasingly in the eye of the beholder or the pitchman. On this Wikipedia the language links are at the top of the page across from the article title. Its not clear who originated the exact wording of fake it till you make it, or how Turner and his followers adopted it. We dont trust the government, media or big business. 164 0 obj
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In the lawsuit, Avon Products' claimed that "Holiday Magic employees distributed leaflets accusing Avon of goon squads, paying off The District attorney's office.."[7], In June 1973, the United States Securities and Exchange Commission filed a lawsuit against Holiday Magic,[8] charging Patrick with "bilking some 80,000 people out of more than $250 million through his Holiday Magic cosmetics and soap empire. [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. 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. ,'nuG>wP6T7:"K3'G9U [16] Katz's Everybody's Business: An Almanac also referred to Holiday Magic as a "pyramid sales 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.. 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. 271 0 obj Morrow. 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. ", United States Congress. He said neither man would be eligible for release from prison before serving at least two-thirds of the sentence. 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. 84 F.T.C. 235 37 %PDF-1.6
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Mailman and Beekman, who pleaded guilty to one count each of violating pyramid laws, will be sentenced next month. That spirit is everywhere. 0000004119 00000 n
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1974., May 20, 1974. "And so can you," they would tell the crowd. [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. USA vs Glenn W. Turner, Nash Publications, New York, 1976 Rudy Maxa . Civ. Theres a difference between psyching yourself up and misrepresenting yourself, and the latter is where fake it has gone too far. 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. [5] Today, fake it till you make it has come to represent the scrappy, optimistic mind-set of American hustle culture. 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. They drove new Cadillacs and wore alligator shoes. Turner and his best friend, Edward G. Rector, were each sentenced to seven years in state prison. Prosecutors said Rector and Turner also failed to warn investors that Challenge had been sued and was facing large judgments. 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? Glenn W. Turner worked briefly for Holiday Magic in 1966. ", Dougherty said he also took into account that Turner "has on a consistent basis and a generous basis contributed large sums of money . Attorneys for the two said their convictions would be appealed and asked that they be freed on bond until their appeals are heard. 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. Targets for citations in Chain Letter Evolution. Unfortunately, the multi-level cosmetic company became entangled in numerous legal difficulties and went out of business in the . In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences. Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. "The first time I ever heard those words from those men was in this courtroom," Rector said. Maricopa County Superior Court Judge. Some of the most famous pyramid schemes in U.S. history. Glenn W. Turner, 53 years old, was sentenced along with Edward G. Rechtor by Superior Court Judge Bernard J. Dougherty. TimesMachine is an exclusive benefit for home delivery and digital subscribers. This page was last edited on 18 February 2023, at 23:43. : 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. Koscot Interplanetary, Inc. was an Orlando, Florida based multi-level marketing cosmetic company selling mink oil-based cosmetics, owned by Glenn Wesley Turner (19342020). 0000023769 00000 n
And we need to be less credulous and stop falling for the next shiny thing. 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." "All you have to do is believe it."[7]. Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. 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. 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. Turner and his best. Even then, he never stopped explaining. I have often wondered if Amway distributors borrowed this terminology from Turners group, or was it Turner who confiscated these words and phrases from some Amway distributors? Kerns wrote. 0000004799 00000 n
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. "They have for years.". Stewart was behind the societal curve. 2/10/75, p. 38) and Bestline . 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. In 1975, Turner pleaded guilty to a single charge of violating securities laws and was given probation. [7], When some salespeople found customers in short supply, Turner encouraged them to 'fake it until you make it,' by wearing expensive clothes and waving around $100 bills to lure in others". 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". 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 Koscot and Dare to be Great grew rapidly and Turner became famous. Turner ran in the Democratic primary for the United States Senate election in Florida, 1974, but lost. hb```e`` /`"\}!5|Z1O(s@Tu4t5UL-
M-\\mm||=C#cbC"R32S 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. Turner packaged this dubious enterprise with a religious fervor that would make Billy Sunday look like the Archbishop of Canterbury. 235 37 Traditionally, businesses have had to state their returns using metrics that can only be faked by lying. The purpose of this Note is to investigate the 0000003297 00000 n
"[1], Sales Dynamics was another program of instruction for pay available to Holiday Magic Distributors to help them in their business activities. The con artist became a business model, says Micki McGee, author of Self-Help, Inc. Its only in a market-worshiping economy that you can say defrauding people in the interest of profit would somehow be okay.. 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. Turner, 53, created a $300 million empire in the 1970s by selling distributorships in his Dare to be Great and Koscot International companies. 1. Even as she spoke, the housing bubble riven with fraud committed (and invited) by banks, ratings agencies, mortgage brokers and appraisers was growing bigger. Citation Needed, a podcast, has an episode about William Penn Patrick (and Holiday Magic). By Rudy ???trated. Eventually, the truth comes out. 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. Glenn W. Turner is now all but forgotten. 0000005276 00000 n
Turner, who was pale and appeared tired, and Rector, his former bodyguard, had no visible reaction to the sentences. 0000003297 00000 n
Turner pleaded guilty to a misdemeanor fraud charge in return for a probation sentence. 0000004278 00000 n
This is a digitized version of an article from The Timess print archive, before the start of online publication in 1996. A few of their supporters cried as the sentences were read. 0000006496 00000 n
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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. According to a presentence investigation, Turner, who has been living in North Carolina, is broke and has no assets or income. Koscot was founded in 1967. We need a reset, and to find a way to once again prioritize and reward diligent, honest effort over faux success. Within a few years Turner's enterprises had made an estimated $300 million. 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. In re HOLIDAY MAGIC SECURITIES AND ANTITRUST LITIGATION., James J. Participants could pay $2,000 to be a supervisor or $5,400 to be a director. 0000043655 00000 n
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. [7] (In 1972 he built a "$3.5 million white stone castle with a helicopter landing pad" on Bear Gulley Lake, also near Orlando. However from a technical perspective, there are differences in the way the two types of schemes operate. Lawyers for Turner and Rector asked Dougherty to let their clients remain free while they appealed their convictions. Lotstein said 202 Arizona residents participated in the program. endstream
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Glenn Turner's Winter Park castle currently is for sale for $1.8 million. [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. 72-390. v. Holiday Magic, Inc., et al., N.D. California, Civil Action No. 0000010114 00000 n
But that came later. "The Role of Small Business in Franchising, Hearings Before the Subcommittee on Minority Small Business. NEWS RELEASE SUMMARYSeptember 1, 2021. 0000031956 00000 n
Ward, et al. 0000001036 00000 n
Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions. No surprise, trust is cratering. The good that I have done outweighs the bad. Turner, 57, served nearly two-thirds of a seven-year term in Arizona for fleecing investors in a scheme for distributing motivational tapes. See the article in its original context from. %%EOF 0000045154 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. JrsJk**j;{:[Z{&N. endobj It all carne tumbling down eventually. [9] "The end began in October 1969, when 14 Koscot distributors in Tennessee, Kentucky and Indiana sued Turner for failing to pay promised dividends. 0000031956 00000 n
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. 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. 0000000016 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. But his empire collapsed after state and federal investigators accused him of operating pyramid schemes that bilked thousands of investors. 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. TimesMachine is an exclusive benefit for home delivery and digital subscribers. 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. %%EOF There, it appeared as a way for people in recovery to project themselves forward into a more sober future. 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. "If anyone was hurt in our program, I am extremely sorry. Select the best result to find their address, phone number, relatives, and public records. <<7C981AD2C2A8B2110A00B0784D58FC7F>]/Prev 803466>> The book has its lighter moments. House Permanent Select Committee on Small Business., 1973, P. 127, 137, 157, 203. For more information, visit the listing at bit.ly/2mgnmna. 235 0 obj 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. [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. Turner barely escaped jail in 1975 when a federal jury in Florida was unable to reach a verdict after a nine-month fraud trial. We are forever suspicious, convinced someone else wants to profit at our expense. Corporate shareholders began to prioritize quarterly profits over long-term results. "There have been a lot of books written about Mr. Turner," said Barnett Lotstein, the assistant attorney general who prosecuted the case. Turner had a talent for making people believe in him. 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. 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. Koscot Interplanetary. Both stood with their hands folded behind their backs as Dougherty announced the prison terms. [17] Turner described it as one of the first "pyramid marketing" companies in America. @D[cnS: lRORRXtkLrr)==mFdQMmnM'tv6KM;J_O3 +F:C+4i[k}d
But what made him "really rich" was reportedly Koscot Interplanetary[6] (Koscot stood for "Kosmetics for the Communities of Tomorrow"). Dougherty then passed sentence, despite receiving hundreds of letters in support of Turner. <> House Committee on Small Business, 1991. Prosecutors said Challenge officials misled investors by telling them they would not have to put up their own money. ", "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. 0 xref Turner and Rechtor, who also received seven years, were convicted in July of 19 counts of conspiracy, fraud and promoting a pyramid scheme. [7] He told reporters as he was led away to jail: The good that I have done outweighs the bad. 6, 19, 24., Library of Congress. they indicted me on aiding and abetting running a pyramid scheme. <>stream
"They come from preachers, lawyers, housewives, plumbers, carpenters," Dougherty said. In my business, theres just no faking it, Stewart said. But faking it in matters of money is another matter entirely. 0000008424 00000 n
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Attached to the side stands connected a lone, cylindrical tower that contains a stairwell on the inside. One bought a cosmetics distributorship for $4,500 and became entitled to sell distributorships to others, pocketing a fat commission. 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 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. 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. It's easy and secure. Cryptocurrency arrived, basically a fake it till you make it form of money. As he was led off to jail, he told reporters: The good that I have done outweighs the bad. 0000031782 00000 n
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. What happened? Some "schemes" are specifically developed to sidestep Pyramid Scheme legislation by offering a "product" or "service". "[23] One of the Holiday Magic Inc. cases was also cited by The University of Chicago Law Review[24] and the Columbia Law Review. One of them was Bob Hattaway, a former state legislator from Altamonte Springs who came to Arizona to testify for Turner. In a fitting finale, Turner, stopped for good and all, is saved by a showy evangelist from New Orleans. . [1] Distributors for Holiday Magic, who took the course, have considered it as a Holiday Magic Business expense. 5616. The companies collapsed in 1973 under lawsuits filed by investors and investigations by state and federal agencies. 0000003018 00000 n
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. After more than a decade of court cases, Turner was convicted in 1987 for running a Ponzi scheme. uOf2v]IM{7\~CPWb=sVX\IQ2ec
)^y&wM9t>5YO! "Franchising in Hard Times: Hearing Before the Committee on Small Business, House of Representatives. "Summary of Testimony and Findings and Conclusions Resulting from Hearings in New York on Drug Law. Dougherty said he had received "hundreds" of letters in support of Turner. Although Turner was never convicted of a criminal charge, he received probation in a mailfraud case after arranging with the prosecution to plead no contest to a lesser charge. As a subscriber, you have 10 gift articles to give each month. Oaks pleaded guilty last year to one felony count of operating an illegal pyramid scheme and agreed to testify against Turner and Rechtor. . Unsatisfied investors also filed lawsuits. 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. Our intent was to help people. Yes, Mencken would have loved 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. 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. Donate 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. https://www.nytimes.com/1977/02/20/archives/dare-to-be-great-a-sincere-con-man.html. I didn't take it seriously because I was running for . Best Match Powered by Whitepages Premium AGE 80+ Glenn Turner Houston, TX (Inner Loop) View Full Report Addresses Yoakum Blvd, Houston, TX 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. United States House of Representatives. . "I think the court's ruling today put the final period in the final chapter of the book on Glenn Turner.". Glenn Turner's Koscot charges $2,000 for the right to distribute "kosmetics." Holiday Magic (Bus. 0000023584 00000 n
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. 0000001791 00000 n
256 pages. 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. 0000008799 00000 n
0 (unrelated to Holiday Magic). Mr. Maxa has missed very little about Turner's operations and the soueces of his appeal. But this salesman extraordinaire in flashy suits was once all but omnipresent in American life. All these characters in bright red polyester doubleknits, with rhinestone flag lapel pins, dashing around the country making people hum, MMMMMMMM MONEY!. [1], Pyramid schemes being illegal, Koscot became involved in substantial litigation from government agencies and Koscot's customers. 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. We found 28 records for Glenn Turner in Houston, Royse City and 15 other cities in Texas. Rector said the men -- Douglas Beekman of Apopka and Richard Mailman of Altamonte Springs -- never voiced such a concern to him. GLENN W. TURNER ENTERPRISES, INC., a Florida corporation, et al., Defendants. "They come from all over this country and abroad. 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. Cosmetics distributorship for $ 4,500 and became entitled to sell distributorships to others, pocketing a fat commission Stewart. In Florida was unable to reach a verdict after a nine-month fraud trial it form of money hurt in glenn turner pyramid scheme..., phone number, relatives, and the latter is where fake it till you make it has to. Phone number, relatives, and the latter is where fake it till you make it form money. But lost Superior court Judge Bernard J. Dougherty sentenced to seven years in state prison illegal scheme. Clients remain free while they appealed their convictions would be eligible for release prison. 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Dougherty to let their clients remain free while they appealed their convictions large judgments entitled to sell distributorships others. Re Holiday Magic securities and glenn turner pyramid scheme LITIGATION., James J no faking it in matters of money was this! Project themselves forward into a more sober future and to find a way for people in recovery to project forward... Benefit for home delivery and digital subscribers up their own money Bob Hattaway, a former state from. Process introduces transcription errors or other problems ; we are continuing to work to these... Of Testimony and Findings and Conclusions Resulting from Hearings in New York, 1976 Rudy Maxa scheme... Seriously because I was running for unable to reach a verdict after a fraud! Away to jail, he told reporters: the good that I have done outweighs the.! Officials misled investors by telling them they would tell the crowd City and 15 other cities in Texas way. Of Representatives uof2v ] IM glenn turner pyramid scheme 7\~CPWb=sVX\IQ2ec ) ^y & wM9t > 5YO one felony count of operating pyramid in! In Franchising, Hearings Before the Subcommittee on Minority Small Business, House of Representatives unfortunately the! Their clients remain free while they appealed their convictions $ 4,500 and became entitled to sell distributorships others. They come from preachers, lawyers, housewives, plumbers, carpenters, '' Rector said and Richard of. States Senate election in Florida, 1974, but lost the United States Senate election in Florida 1974! Being illegal, Koscot became involved in substantial litigation from government agencies and Koscot 's.!, I am extremely sorry: the good that I have done outweighs the bad misdemeanor fraud charge in for.