Holiday Magic

Origins

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. The company called Zolene was about to go out of business. 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.

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.

Later information

CEO and President Roland R. Nocera pleaded guilty to securities fraud, in the case United States v. Nocera, et al. (unrelated to Holiday Magic). Larry Stephen Huff, another key individual in the company, served two years in a Federal Prison, for charges related to a Ponzi scam (unrelated to Holiday Magic).

Abe F. March held several executive positions for Holiday Magic and parent company U.S. Universal; Regional Vice President, Canada (1971–1972), Vice President, Greece (1972–1973) and Managing Director for Sta-Power, Germany (1973). He subsequently bought exclusive rights for Middle East distribution of Holiday Magic cosmetics and formed his own company, Beauty Magic, in Beirut, Lebanon. In 2006 he published a book (To Beirut and Back - An American in the Middle East) dealing, in part, with his experiences.

Glenn W. Turner worked briefly for Holiday Magic in 1966. He then started two multi-level marketing companies, Koscot Interplanetary, selling cosmetics, and Dare to Be Great, selling motivational and self-improvement courses.

In 1974, after almost 10 years in operation and tied to pyramid schemes and controversy, both Leadership Dynamics and Mind Dynamics ceased operations.

Legal problems

The State of California filed suit against Holiday Magic in December 1972.

In February 1973, Holiday Magic was sued for calumny by Avon Products. In the lawsuit, Avon Products' claimed that "Holiday Magic employees distributed leaflets accusing Avon of goon squads, paying off The District attorney's office."

In June 1973, the United States Securities and Exchange Commission filed a lawsuit against Holiday Magic, charging Patrick with "bilking some 80,000 people out of more than $250 million through his Holiday Magic cosmetics and soap empire".

The company was investigated by the Federal Trade Commission, and in June 1973 the company was found guilty of deceptive trade practices. 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.

In 1973, Holiday Magic's proceedings were prohibited by the Market Court of Sweden, and a fine of 2 million Swedish kronor was imposed.

Pyramid scheme

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. 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". Holiday Magic was also labeled a "pyramid scheme" and a "multi-level distributorship" by the United States Bureau of Domestic Commerce, in their 1976 published book: Crimes Against Business: A Management Perspective.