Several reports have been online about the pass away of the MMM founder Mavrodi. The Russian businessman and founder of the MMM deprived millions of Russians and Nigerians their savings in the 1990s, and 2016 respectively.
Radio Free Europe/Radio Liberty reports Monday that the 62-year-old MMM founder Mavrodi was rushed to the hospital late on March 25.
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.
Brief story about MMM founder Mavrodi
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 ½ years in a penal colony.
Mavrodi launched another 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, 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