William Scott Pinckney, The Amway India CEO, , was arrested by the Kurnool police on the charge of cheating and fraud, was remanded in judicial custody till June 10 by a magistrate court at Dhone in Kurnool district of Andhra Pradesh on Tuesday.
William Scott Pinckney’s petition for bail has been rejected.
Pinckney was detained by a special team from Kurnool in Gurgaon, Haryana, and was shifted to Kurnool on a transit warrant. During the period of custody, he will be held in the Kadapa central prison.
Pinckney, an American citizen is the second accused in the case while the Amway company is the accused number one.
According to Kurnool SP K Raghurami Reddy, William is charged under Section 420 of IPC (cheating) and Sections 3, 4, 5, and 6 of Prize Chits and Money Circulation Schemes (Banning) Act 1978.
It was in 2013 that a case was registered against Pinckney at the two town police station in Kurnool city following a compliant made by a local advocate Jagannatha Reddy.
The other accused are staff at the local distribution centre – Vinaykumar, Venkateswarlu and Erranna.
Cases have been pending against the organisation, which has been supplying its products through chain link system for the past 15 years. when CID Police, Hyderabad, registered a criminal registered a case against the organisation in 2006, the company approached the AP High Court requesting to declare that its scheme does not fall under the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
A charge sheet against Amway was filed by the CID and the same was taken cognizance by CMM Court and Amway has been facing a criminal trial.