Skip to main content

Breaking: MMM founder Sergei Mavrodi dies of heart attack

I

Russian businessman and founder of the MMM Pyramid scheme, Sergei Mavrodi, is dead.

According to Russian media, Mavrodi whose MMM pyramid scheme deprived millions of Russians their savings in the 1990s, died of a heart attack.

Radio Free Europe/Radio Liberty reports Monday that the 62-year-old was rushed to the hospital late on March 25 with pain in his chest and died several hours later.

Mr. Mavrodi’s MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors. It also promised returns of 20 per cent to 75 per cent 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, Mr. Mavrodi was elected as a lawmaker, a decision he later said was to ensure he received immunity from prosecution although he later lost his parliamentary mandate.

A Moscow court found him guilty of financial fraud in 2007 and sentenced him to 4 1/2 years in a penal colony.
Mr. Mavrodi launched another pyramid scheme called MMM-2011, calling on investors to purchase so-called Mavro currency units in a bid to get rid of the “unfair” financial system. The project was however halted after a few months.

Between 2011 and 2016, Mr. Mavrodi launched Ponzi schemes under the MMM brand in India, China, South Africa, Zimbabwe, and Nigeria.
The operations were subsequently shut down in many countries, including Nigeria.


MMM stands for Mavrodi Mondial Moneybox. The company got a lot of money from people – it was making about 50 million USD each day. MMM started as a company that imported office equipment.

 In January 2017 MMM Nigeria reopened. Also, on February 11th the company announced the lifting of the withdrawal limits on 2017 mavro. 

Investors were angry because of the delayed, and unfulfilled payments and some people left the scheme. The investors who stayed loyal to the company were given assurance of getting back their money.

Comments

Popular posts from this blog

Nigerian Rapper dies 2 years after releasing the song "if I die young"

Nigerian rapper, Eche Victor otherwise known has Rappon has passed away weeks after releasing a song titled "if I die young." The musician died after suffering from one illness to the other.

The Enugu based rapper died two days ago of an unknown ailment and has since been buried in his hometown. His last post on Facebook dated March 10, 2018 reads, 'Its being a challenging year for me, from one illness to another but i know God got me. Am getting back on my feet and the hustle continues'.

The fast rising rapper is mainly known on social media for his May 2015 rap cover to "If I Die Young", a song originally released by American country music group "The Band Perry"

Lotanna Kacey Akachukwu wrote: "RIP Rappon. My blood. Your memories still remains fresh in my heart. We had a short stay together but feels like decades. *sad* I can remember I snapped this picture of you back then in ASO ROCK lodge. God knows best."

Another friend, Earldon Daniel …