The founder of the MMM financial pyramid scheme Sergey Mavrodi, stole life savings from more than a million Russians in the early 1990s.
About 25 years later, the convicted founder ran away from Russia and founded the Ponzi scheme again. Russian “investors’ lost more than $100 million.
Simply put: MMM Zimbabwe has crashed as predicted.
MMM Global has swept across Africa, with promising returns on investment of 30% per month.
MMM Global Ponzi says new members ‘assist’ older members by paying a fee to join.
Older members are allowed to withdraw money after a certain period of time, and receive bonuses for encouraging others to sign up.
One of Mavrodi’s sister company, “Republic of Bitcoin,” folded in April this year. Again, ‘investors’ lost millions of dollars.
The police are chasing him for this too.
MMM’s website describes the scheme as a circular system where members ‘give help by transferring the money to each other directly.
A criminal investigation has already been launched into MMM’s Global branch in South Africa. If indicted, MMM will collapse there.
Nigeria’s case will be in a matter of months.
Zimbabwe’s Reserve Bank had warned that MMM was a fraud. The Nigerian Securities and Exchange commission has issued the warning.
According to one top earner in Zimbabwe, “When we put funds into the scheme, we got assistance within seven days.
“But things later changed to 14 days and when we were shut out the waiting period was 21 days.
“What it simply means is that the number of people in need of help has outnumbered the number of people joining.
“Right now we have nowhere to get our money which we invested.”
The Central Bank of Nigeria has been forced to step in, warning consumers not to deposit money in any institution that is not insured by the Nigeria Deposit Insurance Corporation (NDIC).