Thread: Amway India chairman and two directors arrested

Amway India Chairman William Pinckney, two directors arrested

Network marketing firm Amway's India Chairman and CEO William S Pinckney and two company Directors were arrested here today on charges of financial irregularities.

The two directors are Sanjay Malhotra and Anshu Budhraja, crime branch sources said.

The arrests were made on a complaint of a woman who claimed to have incurred loss through the network and on the basis of three cases registered against the company last year in Wayanad district, they said.

Police had questioned the trio earlier this month and had asked them to report again today for further questioning. They were arrested when they arrived at the police station.

Last year, the crime branch (economic offences) wing here had conducted searches at the Amway office at Thrissur, Kozhikode and Kannur as part of its crackdown on money chain activities. Their godowns at these centres were closed and goods produced were also seized.

The searches were launched following a complaint lodged by Visalakshi of Kozhikode claiming that she had incurred losses.
Meanwhile, an Amway press release at Kochi said the company was providing consistent support and cooperating with the investigations of the Kerala Police CB-CID further to the complaint filed in 2012.

The management represented by William S Pinckney and Anshu Budhraja and Sanjay Malhotra have always been present to answer any queries of CB-CID, it said.

"With respect to the Wayanad case of 2011 for which it is believed that arrest warrants have been issued, the company or its officials have not been issued any summons to join the investigation nor was any information sought.

"In this respect, the company management would have been happy to cooperate with the Wayanad Police in that matter as well, as we always have as a law abiding corporate citizen, following all laid down laws of the land," it said.

Amway has submitted all information and documents that have been requested for the police officials, it said. "We are cooperating with the police for any further investigations in other matters as well".

"We also call upon the Government of Kerala to ensure the enactment of a formal regulatory or legislative framework so as to resolve and provide clarity for all the legitimate Direct Selling businesses," the release said.

Economic Times / India Times

What seperates an Amway from an empower Network?

How does amway stay in business for 60 years and others crash and burn.

Originally Posted by Fendaril

...
How does amway stay in business for 60 years and others crash and burn.

Support of US congress ;)

Amway as well as Herbalife are members of DSA and have very powerful lobby.
And some congressmen are all the way at the top of the pyramid.


Should also consider why MLMs are the perfect scam, that is because victims led to believe that not succeeding is only their fault.

And also ask why those MLM-scams are publicly traded stock companies,
if anything their financial reports are faked every year by claiming sales within network as retail.
Why SEC and FTC do not touch them?