Tuesday, March 27, 2018

MMM founder, Sergei Mavrodi, Died Of Heart Attack

Russian businessman, Sergei Panteleevich Mavrodi, whose MMM pyramid scheme deprived millions of Russians of their savings in the 1990s and Nigerians in 2016, has died of a heart attack, according to Russia media.

According to reports, the Russian financial fraudster and previously a deputy of the State Duma was rushed to the hospital late on March 25 with pain in his chest and died after hours.

Mavrodi's MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors. Mavrodi promised returns of 20 percent to 75 percent a month, as well as lotteries and bonuses for investors.

As soon as the number of new clients stopped growing, the pyramid collapsed, causing huge financial losses for at least 10 million people, in some cases leaving them destitute.

In 1994, Mavrodi was elected as a lawmaker, a decision he later said was to ensure he received immunity from prosecution. In 1996, he lost his parliamentary mandate.


In 2007 Sergei Mavrodi was convicted in a Russian court of defrauding 10,000 investors out of 110 million rubles ($4.3 million). Mavrodi claimed he was not the beneficiary of the donations and that he was not used to a flamboyant lifestyle. 

Mavrodi said that his goal with MMM-2011 is to destroy the current financial system, which he considers unfair, which would allow something new to take its place. MMM-2011 was able to function openly as Ponzi schemes and financial pyramids are not illegal under Russian law. 

In January 2011, Mavrodi launched another pyramid scheme called MMM-2011, asking investors to buy so-called Mavro currency units. He frankly described it as a pyramid, adding "It is a naked scheme, nothing more. People interact with each other and give each other money. 

In May 2012 he froze the operation and announced that there would be no more payouts.

From 2011-16, Mavrodi launched Ponzi schemes under the MMM brand in India, China, South Africa, Zimbabwe, and Nigeria.




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