Friday, 15 November 2013

No time for Amway chief to attend criminal court

They are all alike. The politicians, bureaucrats and even heads of multinational companies and those who believe that they are too big to follow the trivial issues like attending the judicial court.
The case in point is the head of Amway India Enterprises, Mr William Pinckney. He has once again failed to present before the Chief Metropolitan Magistrate Court, Nampally in Hyderabad recently. The presiding judicial officer cannot do anything but to post the case to the next date on December 12 because either the public prosecutor or the attending police officer did not raise any objections to the absence of the accused No 2 in the criminal case against Amway India Enterprises. 
The counsel for the CEO promptly submitted papers to the judicial court stating the reasons for his client's absence. These high profile men feel it that it is below their dignity to attend the court. They move around freely organising press conferences, travelling throughout the country appealing to the gullible to join their illegal money circulation scheme, take with them the least questioning scribes on paid tours. However, they could not find time to attend the judicial court. 
Suddenly, half page advertisements appeared in almost all newspapers in the State of Andhra Pradesh on November 13 much to the surprise of everyone. Nobody could understand what was the provocation. The next day, the Additional Director General of Police (CID), T Krishna Prasad, released a press statement on Thursday to all print media appealing people not to fall prey to the schemes of Amway India Enterprises since the company's business model was illegal. The CID stated in the statement that they had arrested Amway CEO William S. Pinckney on Thursday in connection with a fraud case of 2010.
The Addl DGP cautioned public against Amway products. "They (Amway) are promoting their products through money circulation by conducting membership drive. The firm cheated public by enticing them with incentives. Their activities are covered under money circulation and violate Prize Chits and Money Circulation Schemes (Banning) Act, 1978."
In essence, Amway tried to buy the print media by giving them half page advertisements and it has succeeded to some extent. It had lobbied through the intermediaries bringing pressure on the media not to publish the police statement. But almost all the newspapers published the police statement though not in full. 
The notable point is that the CEO has already obtained anticipatory bails in the criminal cases pending in various police stations in the State of Andhra Pradesh. 
The Corporate Frauds Watch Society on Friday sent the following press note for favour of publication to various newspapers.

                     PRESS NOTE FOR PUBLICATION
The Editor,

Sub: Public alert against Multi-Level Marketing Frauds – Reg.

Respected Sir,

            I, Shyam Sundar, Secretary, Corporate Frauds Watch Society, in the interest of general public wanted to request and alert the public not to fall prey to the companies indulging in the Multi-Level Marketing Schemes. These schemes are nothing but product camouflaged illegal Money Circulation Schemes. In the front end, these companies showcase sale of products and in the backend they promote recruitment of chain of members with the false promise to get quick rich.
            Corporate Frauds Watch society has also filed criminal case in Ramachandra Puram P.S. against Amway India Enterprises for promoting illegal Money Circulation Scheme in 2010. The CID has taken up investigation in this case and arrested the CMD of Amway. 
In 2006 when the CID seized and sent the 33 of products of Amway to analysis, the State Food Laboratory, Nacharam opined that 18 of the products of Amway are not food, adulterated and misbranded. On that, the State Food department has filed criminal cases against Amway and Amway has been facing criminal trial in Nampally Criminal Courts in this regard. Apart from this, with regard to some of the products, Vijayawada consumer forum has also ordered to withdraw the products from market and also fined Rs.1 lakh. When Amway appealed against the order of district forum, State Consumer Forum also upheld the order of Vijayawada consumer forum. Later the Amway approached the National forum.
Moreover, the sale transaction of these companies are not legal in terms of Sec.3 of Sale of Goods Act, 1930 r/w Sec.2(c) and 3 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and Contract Act, 1872. Apart from this, the so-called members are not end-consumers to get protection under Consumer Protection Act, 1986 since these MLM companies refer their members as distributors not consumers.
Hence, we request the public not to fall prey to the schemes of such MLM companies and their products which may not only harm the health but also make people offenders in terms of Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Kindly publish it in the interest of general public.


1 comment:

David Brear said...

Shyam - These recent, predictable events are a clear attempt (by the billionaire bosses of the 'Amway' mob in the USA), to obstruct justice in the Republic of India, in order to continue to commit fraud all around the globe whilst isolating themselves from liability. As such, they form part of an overall pattern of ongong, major, racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970.

Even though the RICO Act provides US law enforcement agencies with extraordinary powers to tackle all forms of organized crime, they have mysteriously allowed various gangs of 'MLM income opportunity' cultic racketeers to steal huge quantities of cash from their own, and from your, fellow citizens, with impunity.

David Brear (copyright 2013)