Kurnool cops nab Amway CEO for fraud - Times of India

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The author has posted comments on this article TNN | May 28, 2014, 02.44AM IST

HYDERABAD: Amway India chief executive officer (CEO) William S Pinckney was arrested by the Kurnool police on Tuesday, but till date, there is no progress in eight other cases booked against him across Andhra Pradesh.

The Amway India CEO was charged under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and cases were booked against him by in Guntur (Pattabhipuram PS),Vijayawada (Governorpet PS), Prakasam (Ongole II town), Medak (Ramachandrapuram PS), Hyderabad (Chikkadapally), Cyberabad (Nacharam PS) police and Crime Investigation Department (CID). Of these cases, only in one case CID had filed a chargesheet and William Pickney has been attending trial. Due to police apathy, the Amway authorities were continuing their business despite facing charges and the Supreme Court upholding the order of the AP High Court, which declared that Amway business fell under the Money Circulation Act. The Amway's business, a form of chain marketing, has been flourishing in all districts of AP with its regional office at Somajiguda.

In 2006, the CID officials had first registered a case against Amway and sealed its offices briefly, but subsequently the organisers resumed their operations. The state government had also issued a GO banning Amway advertisements. "We have already filed a chargesheet in one case. In the second one, we are in the process of filing the chargesheet as investigation is nearly done ,'' a CID officer said.

Meanwhile, Amway authorities in a statement refuted the charges levelled by police against their company. "Due to the lack of a legal framework for the direct selling industry, any case filed is being misinterpreted and booked under the Prize Chits and Money Circulation Schemes (Banning) Act 1978 (PCMCS), which is otherwise intended to regulate financial schemes. The direct selling industry has been repeatedly seeking an amendment to the PCMCS Act and has been working along with various industry bodies and government for the same,'' the Amway said in a statement issued here on Tuesday.

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