MLM / Chain Money
Amway India CEO arrested again
Based on a case filed in Kurnool, the Andhra Pradesh police took the CEO of Amway India into custody from the company headquarter at Gurgaon
 
William Scott Pinckney, chairman and chief executive (CEO) of Amway India has been again arrested by police. This time, he is arrested by Andhra Pradesh police, says a report in The Hindu Business Line.
 
Based on a case in Kurnool, a police team from the town took the top executive into custody in Gurgaon, the company's corporate headquarters, the The Hindu Business Line report added.
 
Andhra Police said that the arrest has been made based on a case filed by a lawyer alleging unethical practices followed in money circulation and product selling and under pertinent laws. 

In a statement issued on 28th May, Amway India, said, "In an interesting and curious sequence of events, the AP Police re-arrested William Pinckney and started moving him from Kadapa jail to Khammam jail even before the outcome of the bail hearing in Kurnool. This movement was basis another frivolous FIR lodged in Khammam some days ago. Subsequently, in the evening, the bail application of William Pinckney was denied by the Kurnool court. We will now approach the sessions court."
 
"We maintain that the allegations mentioned in the FIRs are frivolous and give a misleading impression about our business. We had no prior information about the FIR which was filed way back in December 2013," Amway India added.
 
Last year in May, Crime Branch officials of the Kerala police arrested Amway India’s the then managing director and CEO Pinckney and two directors, Anshu Budhraja and Sanjay Malhotra of the multi-level marketing (MLM) company for alleged money laundering and breach of trust. The arrests were made under the Prize Chits and Money Circulation Schemes (Banning) Act 1978 (PCMCS Act), which only goes to prove that the Act is not as toothless as various state governments have liked to claim.
 
Moneylife and Moneylife Foundation have always said that Amway and several other multinational chain-schemes do fall foul of the PCMCS Act and there are clear high court judgements to this effect. 
 
The fact is there has been plenty of litigation on the issue, precisely because various authorities consider that the operations are illegal under the PCMCS Act of 1978. Moneylife Foundation, an NGO working towards spreading financial literacy, has repeatedly warned people about falling for MLM and pyramid companies with innumerable examples of losses incurred. Moneylife Foundation sent a representation to the prime minister, finance minister, governor of RBI and SEBI.
 
A set of powerful MLMs, which are part of an exclusive closed club, called the Indian Direct Selling Association or IDSA (on the lines of the Direct Selling Association of the US) has been lobbying hard to make a distinction between their operations and those of others, who they call, fly-by-night operators such as Speak Asia and Ad Magnet. In fact, the tens of thousands Ponzi/ double-your-money schemes that exploit poor financial literacy cause the biggest losses to Indians across the economic spectrum today.
 
Amway can be at best a source of pocket money
Senior Amway representatives had met Moneylife to clarify their views on Amway. Richard N Holwill and Rajat Banerjee , who met us, admitted that although some distributors tend to go overboard in pitching the scheme, income from being a distributor of Amway can, at best, be a source of additional income or pocket money for most people. It is not the pathway to riches as MLM companies make it out to be. However, Amway also insisted that there is no longer any joining fee and the model does not necessarily require enrolment of distributors. However, there was no answer to expensive nutraceuticals being prescribed by doctors, whose wives or relatives were Amway agents.
 
In India, AP was the first state to enact a law to ban money circulation schemes in 1965. Both the Supreme Court and several high courts have passed landmark judgements against the operation of these schemes as they violate the law of the land and are detrimental to the interests of the public.
 
There are on-going cases against Speak Asia and Amway, to cite two examples.

User

COMMENTS

MOHAN

3 years ago

.

It is an oft-repeated lie of chain-money companies that they are operating in many countries around the world for the last several years. But these Ponzi companies never reveal the list of the countries where they are doing business and/or since when they have started business in these countries.


REPLY

Anand Mohan

In Reply to MOHAN 3 years ago

But the question is what cheating has been done by Amway so as to warrant the arrest of its Chief right away. Is it not injustice to a foreigner that he is being arrested in multiple FIRs on same cause of action so that he does not come out of jail. Just think, an Indian goes to foreign country on assignment and being booked under several FIRs for same offence. His relatives will be helpless even to meet him. After all what is the offence committed by Amway and who has done the cheating , is it the chief or some local person, this is the moot point.

MOHAN

In Reply to Anand Mohan 3 years ago

India is not a banana republic.

Police cannot register an FIR against an "innocent" foreigner, especially against a US citizen

Under any circumstance Govt. cannot allow Chain - money activities of a foreign or domestic ponzy company

yamuna

3 years ago

Amway's concept is as similar as purchasing products from supermarket. There is no any joining fee. If you like to use quality products then by just giving your address/ID proof & Bank account you can be a distributor & can purchase products from Amway. If you don't like the quality then you can return even after using the product upto 30% within 30 days. No body pressurize you to build a network.

Building a team/Network is optional. It is as simple as we watch a movie & refer all our friends to watch the movie. When a group of people are purchasing the products then company is getting turnover & giving you some profit. There is nothing wrong.

If Amway would have been a Ponzy scheme then they will never invest Rs. 500 Cr. in INDIA (Tamilnadu) to establish their Company.

If really Indian Police wants to do something then please find out "How money Circulation is going on in IPL?"

Amway is operating in 108 countries for the last 55 years.
Let's don't make our self fool by arresting such a Healthy Business People. Its a shameful step from Indian (Specially Andhra & Kerala) Police. There are lot of Illegal Chit funds companies as well as individual people running chit funds in Andhra Pradesh. Is there any honest Police Officer is there to Ban all the illegal chit fund companies?

REPLY

MOHAN

In Reply to yamuna 3 years ago

Yamuna, you said "Amway is operating in 108 countries for the last 55 years"

Please let me know the name of the 108 countries and the date of beginning of "operation" in each country

MOHAN

In Reply to yamuna 3 years ago

Yamuna, you said "Amway is operating in 108 countries for the last 55 years"

Please let me know the name of the 108 countries and the date of beginning of "operation" in each countries.

Anand Mohan

3 years ago

In this connection the direct sellers association may contact the govt of new states Telangana/Seemandhra which are going to be formed on 2.6.14 to immediately decide at the highest levels whether Amway is a ponzi scheme. No innocent person must be incarcerated. Further, an application under sec.438 of the Cr P C may simultaneously be made before Hon’ble Hyderabad High Court seeking blanket anticipatory bail as it is apprehended that the police may slap such cases in other districts and may create hurdles in his release.

Abhishek Sharma

3 years ago

In 1993 Amway submit the legal document to Indian government, The government finally approved Amway operation in 1998. In these 5 years Indian government consulted several auditors Lawyers and other experts on Amway business model before finally approving Amway’s direct selling business. The Central Govt. has approved its investments and operations upholding its legality. Most of actions against Amway has been initiated by state police clubbing it with fly by night operators due to lack of suitable laws governing direct selling in India.

Dev

3 years ago

Union Government must immediately expel Amway CEO William Scott Pinckney from India.

Divender Jarial

3 years ago

By arresting Amway CEO, it has been proved by Indian Authorities that no foreign company should invest their time and resources in India. Dev Singh

Surya Prakash

3 years ago

In fact easy money cannot be made in Amway business(most people say it as Scheme)....No joining fee and 3o days return policy even product was used upto 33%..makes satisfaction to ABO and even customer too.And this business is not Pyramid scheme .. & income comes purely from product selling only..Expansion of business with team is purely option.. finally there is no chance of losing money..by doing Amway business....

REPLY

MOHAN

In Reply to Surya Prakash 3 years ago

blah-blah

Srini

3 years ago

I would request Money life to be discussed on the Tupperware India' and IDSA's harassment on their Consulatants through the distributors.Many unethical practices are following by them.IDSA trying to favour all these MLMs at any cost.They are not taking any case seriously because there is no need to report to any Ministry.First All these to be bring under Government's RBI or SEBI's Umbrella or Minsitry of Companies.

All these are happening by IDSA Only and their encouragement to these kind of companies.

MOHAN

3 years ago

Thank God Sachin Pilot is no more our Corporate Affairs Minister.

Sachin Pilot made us believe that Amway was a "law abiding firm" !!!


Read:

Amway arrest worries Pilot:

http://www.telegraphindia.com/1130530/js...#.U4RJp_mSyaQ

MOHAN

3 years ago

Well done Andhra Police!

Credit Suisse Pays & Gets Away
Banks get away easily under RBI too
 
The United Sates of America (USA) has extracted yet another whopping financial settlement from Credit Suisse for allowing it to continue doing business in that country. Credit Suisse will pay a fine of $2.6 billion and has agreed to a guilty plea to the criminal charge of helping Americans to evade tax.
 
This follows publication of a summary of enforcement proceedings by Swiss Financial Market Supervisory Authority (FINMA) against Credit Suisse in 2011 and 2012 which found wrongdoing in cross-border transactions involving Americans. 
 
The Credit Suisse settlement follows a string of guilty pleas by high-profile banks. In December 2012, HSBC Holdings paid $1.92 billion after admitting to charges of flouting money-laundering rules to prevent transactions with countries facing US sanctions. One must also recall that the famed JP Morgan Chase had paid $2.5 billion in fines to the government and to victims of Bernie Madoff’s ponzi schemes which it failed to monitor.
 
It is a matter of grave concern that large US banks and financial institutions get away with guilty pleas that involve massive settlements with little action against those responsible for institutionalising and rewarding illegal and pernicious business practices. Indian regulators who look westward when it comes to financial sector regulation, however, fail to act with the same forcefulness when it comes to imposing hefty fines or ensuring compensation of victims. The banking regulator—the Reserve Bank of India (RBI)—is dragging its feet over a consumer protection framework. 
 
Worse, it also ignores the need for class action even when there is a clear pattern to consumer complaints which show deliberate churning, and mis-selling of financial products (insurance, mutual funds, art funds, etc) to extract higher fees and commissions. This usually happens under wealth management services, making it a case of breach of trust as well. The irony is that RBI fails to understand that its goal of financial inclusion will be set back if banks extend their dubious practices to the unbanked masses when they are newly inducted into the banking system.   

User

COMMENTS

S.S.A.Zaidi

3 years ago

There seems to be a set patterrn--violate the AML guidelines /Sanctions ,pay the fine ,whatever may be the amount of penalty that will still be a fraction of the huge profits these instituitions make,and Regulatory authorities also happy with the huge amount they get as penalties-
zaidi

Here is the list of ministers in Modi government
Rajnath-Home, Sushma-External Affairs, Jaitley-Finance, Corporate Affairs and Defence, Gadkari-Road Transport and Highways, DV Sadananda Gowda-Railways are some of the prominent ministers in Narendra Modi government
 
As expected, Bharatiya Janata Party (BJP) president Rajnath Singh got home ministry and Sushma Swaraj the external affairs portfolio. However, Arun Jaitley and Venkaiah Naidu are the luckiest among other ministers and would be looking after three ministries, each. While Jaitley got finance, corporate affairs and defence, Naidu would look after urban development, housing and urban poverty alleviation and parliamentary affairs.
 
Nitin Gadkari is the new minister for road transport and highways as well as shipping. DV Sadananda Gowda got the railways ministry, while Uma Bharti is the new minister for water resources, river development and Ganga rejuvenation.
 
Here is the list of ministers and their portfolio....
 
1. Narendra Modi Prime Minister Personnel, Public Grievances and Pensions
Department of Atomic Energy
Department of Space
All important policy issues and all other portfolios not allocated to any Minister
 
CABINET MINISTERS
 
1. Raj Nath Singh Home Affairs
2. Sushma Swaraj External Affairs Overseas Indian Affairs
3. Arun Jaitley Finance
Corporate Affairs
Defence
4. M Venkaiah Naidu Urban Development
Housing and Urban Poverty
Alleviation
Parliamentary Affairs
5. Nitin Jairam Gadkari Road Transport and Highways Shipping
6. DV Sadananda Gowda Railways
7. Uma Bharati Water Resources, River Development and Ganga Rejuvenation
8. Dr Najma A. Heptulla Minority Affairs
9. Gopinath Munde Rural Development
Panchayati Raj
Drinking Water and Sanitation
10. Ramvilas Paswan Consumer Affairs, Food and Public Distribution
11. Kalraj Mishra Micro, Small and Medium Enterprises
12. Maneka Sanjay Gandhi Women and Child Development
13. Ananthkumar Chemicals and Fertilizers
14. Ravi Shankar Prasad Communications and Information Technology
Law and Justice
15. Ashok Gajapathi Raju Pusapati Civil Aviation
16. Anant Geete Heavy Industries and Public Enterprises
17. Harsimrat Kaur Badal Food Processing Industries
18. Narendra Singh Tomar Mines
Steel
Labour and Employment
19. Jual Oram Tribal Affairs
20. Radha Mohan Singh Agriculture
21. Thaawar Chand Gehlot Social Justice and Empowerment
22. Smriti Zubin Irani Human Resource Development
23. Dr Harsh Vardhan Health and Family Welfare

 

MINISTERS OF STATE

 

1. Gen (retd) VK Singh Development of North Eastern Region(Independent Charge)
External Affairs
Overseas Indian Affairs
2. Inderjit Singh Rao Planning (Independent Charge)
Statistics and Programme Implementation (Independent Charge)
Defence
3. Santosh Kumar Gangwar Textiles (Independent Charge)
Parliamentary Affairs
Water Resources, River Development and Ganga Rejuvenation
4. Shripad Yesso Naik Culture (Independent Charge)
Tourism (Independent Charge)
5. Dharmendra Pradhan Petroleum and Natural Gas (Independent Charge)
6. Sarbananda Sonowal Skill Development, Entrepreneurship, Youth Affairs and Sports (Independent Charge)
7. Prakash Javadekar Information and Broadcasting (Independent Charge)
Environment, Forest and Climate Change (Independent Charge)
Parliamentary Affairs
8. Piyush Goyal Power (Independent Charge)
Coal (Independent Charge)
New and Renewable Energy (Independent Charge)
9. Dr Jitendra Singh Science and Technology (Independent Charge)
Earth Sciences (Independent Charge)
Prime Minister Office Personnel, Public Grievances & Pensions
Department of Atomic Energy Department of Space
10. Nirmala Sitharaman Commerce and Industry (Independent Charge)
Finance
Corporate Affairs
11. GM Siddeshwara Civil Aviation
12. Manoj Sinha Railways
13. Nihalchand Chemicals and Fertilizers
14. Upendra Kushwaha Rural Development
Panchayati Raj
Drinking Water and Sanitation
15. Radhakrishnan P Heavy Industries and Public Enterprises
16. Kiren Rijiju Home Affairs
17. Krishan Pal Road Transport and Highways
Shipping
18. Dr Sanjeev Kumar Balyan Agriculture
Food Processing Industries
19. Mansukhbhai Dhanjibhai Vasava Tribal Affairs
20. Raosaheb Dadarao Danve Consumer Affairs, Food and Public Distribution
21 Vishnu Deo Sai Mines
Steel
Labour and Employment
22. Sudarshan Bhagat Social Justice and Empowerment

 

Courtesy: PIB

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