+ Reply to Thread
Results 1 to 2 of 2

  1. #1
    Join Date
    Aug 2015
    Location
    www
    Posts
    3

    MMM's Ponzi Scheme: To Russia, With Love (Part1)

    "MMM" is the biggest Ponzi scheme of all that ever existed in the Soviet Union and then in the Russian Federation. According to various experts JSC "MMM" damaged up 10 and 20 million depositors, of which 50 committed suicide.

    "Russia's Bernie Madoff"

    However, in 1989 MMM was registered in Moscow as a cooperative, which dealt with purchasing and selling foreign computer equipment and other gear. Then this business was considered among the most promising, and the company was actively engaged in it until 1991. It is worth noting that in 1990 JSC MMM was one of the leaders in the Russian computer market.

    The name "MMM" is derived from the first three letters of the founders' names: Sergei Mavrodi, his brother Vyacheslav Mavrodi and Olga Melnikova. However, according to S.Mavrodi, it was him alone who took all decisions relating to MMM.

    Sergei Mavrodi, grandmaster of Russia's pyramid cult

    MMM became widely known for the first time on July 31, 1991, when the cooperative held a sensational advertising campaign to provide free travel for all passengers in the Moscow underground during the day, which cost 1 million dollars for MMM.

In 1992, MMM began issuing its own shares, and went public on 1 February 1994.

    It should be noted that the shares were sold on the principle of " today is always more expensive than yesterday". The value of shares and further MMM tickets depended only on Mavrodi's opinion. Most often, of course, the share price only rose, and the growth rates reached 100% a month. Such a trend led to the need to issue a second lot of shares, but the Ministry of Finance of the Russian Federation did not give a permit for the issue of securities.

    MMM Tickets

    Then Mavrodi started issuing MMM tickets, which were equated to the securities, with the only difference being that the cost of one ticket was one-hundredth of the value of the shares, ie a decimal monetary system. This proved to be a very profitable step, because investors could no longer buy shares due to their high cost. MMM tickets were printed on the same factories, where US dollars were printed and had a high degree of protection against forgery.

    The queue of MMM depositors

    Note that S.Mavrodi's business was not just very profitable, but even more: MMM and its leader overtook monetary functions of the state. So, in early 1990s, the ruble was not very stable and could not provide the Russian population with a decent life level. S.Mavrodi offered a quick and convenient way out. It even led to the fact that a large number of companies preferred to keep their surplus funds in MMM shares, and in some cases they even paid its employees in so-called "Mavrodiki."

    Thanks to the competent PR campaign on TV and in mass media, literally for the first six months the value of the company's shares increased more than by 120 times, and the number of depositors, according to various estimates, was 10-15 mln people.

According to the recollections of eyewitnesses and participants in those events it was almost impossible to calculate how much MMM was earning, because the money was not counted, but approximately evaluated by the number of not packs or cartons, but entire rooms "13 rooms . 16 rooms." There is evidence that in Moscow alone Mavrodi earned at least 50 million dollars a day.

    Continue to the Part 2

  2. #2
    Join Date
    Aug 2015
    Location
    www
    Posts
    3

    "Russia's Bernie Madoff" Launches Ponzi Scheme in South Africa

    Sergey Mavrodi, a mastermind of the biggest Ponzi scheme of all that ever existed in the Soviet Union and then in the Russian Federation, has launched Ponzi scheme in South Africa.

    Mavrodi's project, called MMM, promises investors 30 percent monthly profit. At the same time, Mavrodi insists that MMM is not a pyramid scheme. MMM is positioned like a "social financial network", a "community of ordinary people, selflessly helping each other, a kind of the Global Fund of mutual aid".

    МММ was a Russian company that perpetrated one of the world's largest Ponzi schemes of all time, in the 1990s. By different estimates from 5 to 40 million people lost up to $10 billion. The exact figures are not known even to the founders.

    Mavrodi went to jail in 2003 and was released in 2007, only to soon start another similar scheme nicknamed 'MMM-2011' while also expanding his operations to India with what was called 'MMM India.' These operations were shut down earlier in 2012, but he outright referred to them publicly as pyramid schemes on his blog, as Russia's legal system was not equipped to penalize such financial structures.

    The name "MMM" is derived from the first three letters of the founders' names: Sergei Mavrodi, his brother Vyacheslav Mavrodi and Olga Melnikova. However, according to S. Mavrodi, it was him alone who took all decisions relating to MMM.

Similar Threads

  1. The Ponzi Scheme
    By Pyramid Schemes in forum Corporate Scams
    Replies: 0
    Last Post: 01-10-2015, 03:23 PM
  2. Why do they say that Knoji is a Ponzi scheme?
    By luislitt in forum Mail Order Scams
    Replies: 0
    Last Post: 01-12-2014, 11:23 PM
  3. Charles Ponzi And His Scheme
    By mumbles in forum Mail Order Scams
    Replies: 7
    Last Post: 02-07-2009, 07:34 PM
  4. Ponzi scheme??
    By link8898 in forum MLM Scams
    Replies: 0
    Last Post: 11-14-2008, 10:19 AM
  5. $69 Million Ponzi Scheme
    By MBI in forum Mail Order Scams
    Replies: 2
    Last Post: 03-20-2007, 08:01 PM

Tags for this Thread

Bookmarks

Bookmarks

Posting Permissions

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may edit your posts
  •