Following records and history MMM is fraud. Just like cigarette, Tobacco which Federal Ministry of Health warns that Smokers are liable to die young.

Well MMM is like Tobacco which Federal Ministry of Health warns that Smokers are liable to die young.

MMM


MMM meaning

Sergey Panteleevich Mavrodi (Russian: born August 11, 1955) is a Russian criminal and a former deputy of the State Duma. He is the founder of the МММ series of pyramid schemes. In 2007 Sergei Mavrodi was found guilty in a Russian court of defrauding 10,000 investors out of 110 million rubles ($4.3 million)
MMM was established in 1989 by Sergei Mavrodi, his brother Vyacheslav Mavrodi, and Olga Melnikova. The name of the company was taken from the first letters of the three founders' surnames. Founded 1989.



The intended business


  • Office and computer equipment importer
  • Runned MMM-bank
  • Before joining financial sector

Read also  Indians ranks highest Scammers

Problem with MMM

Collapsed January 1992 because of tax invasion.
Regular publication in the media of the rising MMM share price led President Boris Yeltsin to issue a decree in June 1994 prohibiting financial institutions from publicising their expected income.
On July 22, 1994, the police closed the offices of MMM for tax evasion.
At the same time one of the company's subsidiaries, owed more than 50 billion rubles in taxes (USD 26 million), and MMM itself owed between 100 billion and 3 trillion rubles to the investors (from USD 50 million to USD 1.5 billion). In the aftermath at least 50 investors, having lost all of their money, committed suicide.
Several organisations of "deceived investors" made efforts to recover their lost investments, but Sergei Mavrodi manipulated their indignation and directed it at the government. In August 1994 Mavrodi was arrested for tax evasion.
MMM

MMM rise and fall

MMM created its successful Ponzi scheme in 1994. The company started attracting money from private investors, promising annual returns of up to one thousand percent.
MMM grew rapidly. In February 1994, the company reported dividends of 1,000%, and started an aggressive TV ad campaign. Since the shares were not quoted on any stock exchange and the company itself determined the share price, it maintained a steady price growth of thousands of percent annually, leading the public to believe its shares were a safe and profitable.
 Another notable marketing effort was a giveaway of free Metro trips to all Moscow citizens on a particular day. MMM also was one of the first well-known companies in Russia with a logotype and slogans ("Flying from shadow to the light" and others).
At its peak the company was taking in more than 100 billion rubles (about 50 million USD) each day from the sale of its shares to the public. Thus, the cashflow turnover at the MMM central office in Moscow was so high that it could not be estimated. The management started to count money in roomfuls (1 roomful of money, 2 roomfuls of money, etc.)
He was soon elected to the Russian State Duma, with the support of the "deceived investors". In October 1995, the Duma cancelled Mavrodi's right to immunity as a deputy. In 1996, he tried to run for Russia's presidency, but most of the signatures he received were rejected. MMM declared bankruptcy on September 22, 1997.
The MMM scandal led to increased regulation of the Russian stock market, but the legacy of the fraud led many to become extremely suspicious of any joint stock companies.
He changed his business.

While it was believed that Sergei Mavrodi left Russia and moved to the United States, it is possible that he stayed in Moscow, using his money to change apartments regularly and employ a group of former special agents. With the help of a distant relative he started Stock Generation Ltd., another pyramid scheme based around trading non-existent companies' stocks in a form of the "stock exchange game" on the company's site, stockgeneration.com. Despite a bold-letter warning on the main page that the site was not a real stock exchange, between 20,000 and 275,000 people, according to various estimates, fell for the promised 200% returns and lost their money. According to U.S. Securities and Exchange Commission, losses of victims were at least USD 5.5 million.
Magrov punishment.

Mavrodi was found and arrested in 2003. While in custody, Mavrodi was given until January 31, 2006 to read the documents in his fraud case against him (The criminal case consisted of 650 volumes, each 250-270 pages long).
At the end of April 2007, Mavrodi was convicted of fraud, and given a sentence of four and a half years. Since he had already spent over four years in custody, he was released less than a month later, on May 22, 2007.

Another change of business

In 2015 MMM began operating in South Africa with the same business model as MMM-2011, claiming a "30% per month" return through a "social financial network". The group was identified as a possible pyramid scheme by the National Consumer Commission and accounts of clients were later frozen by Capitec Bank. In response to mounting criticism and official investigations by state authorities in 2016 supporters of the South African MMM scheme staged a protest march in Johannesburg.

In 2016, MMM launched a website targeting the Nigerian audience, 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. For no reason!"
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 May 2012 he froze the operation and announced that there would be no more payouts.

In January 2016 the Chinese government banned MMM on the grounds that it is a pyramid scheme, (Ponzi scheme), and it is not registered in the country (and as a fraudulent scheme cannot be registered).
He later went on to creating yet another pyramid scheme called MMM-2011.
Book
In 2008 Mavrodi published the book "Temptation". In May 2008, bailiffs arrested Mavrodi's rights to this book. Seven thousand copies of the book were published.

Countries where MMM collapsed

Russian warned China about MMMM

Yury Chikhanchin, the Director of the Federal Financial Monitoring Service in Russia warned about the future collapse of the MMM Pyramid Scheme of Sergei Mavrodi in China. Mr. Chikhanchin explained the risks at the conference “Risks and Challenges for the economies of the BRICS”, wrote TASS.
"From the media, we know that MMM, with Sergei Mavrodi in charge, is currently expanding its activity in China. Russia has witnessed the collapse of a similar system by Mavrodi in the past, and thousands of defrauded investors still cannot recover their money until this day. I’m afraid our Chinese friends will face the same outcome.”
According to Mr. Chikhanchin, the low level of financial literacy within the population often leads to the growth of economic crimes and frauds. However, he believes that this is a problem not only for developing countries but also for mature economies.

MMM also works in Indonesia, South Africa, India, Bangladesh, and Ukraine. On August 1, Sergei Mavrodi held a presentation of MMM in the Kingdom of Lesotho, South Africa.
Banned and disappeared from Russia 2003.

Starting from December 25th, withdraws from MMM Global have halted. As of today, users still cannot access their funds. China gov't banned it january 2016.

Shut down by Russian police in 1994, declared bankruptcy in 1997.

In 2015 Clients accounts were later frozen by Capitec Bank in South Africa.

In USA Mavrodi was arrested in 2003. While in custody, Mavrodi was given until January 31, 2006 to read the documents in his fraud case against him (The criminal case consisted of 650 volumes, each 250-270 pages long).  According to U.S. Securities and Exchange Commission, losses of victims were at least USD 5.5 million.

A victim from Zimbabwe Mrs Rosemary Mawonde said: “We never thought the scheme would end this way as we believed that by using EcoCash to do the transactions, things were in order. I am surprised that EcoCash is also distancing itself from the scheme and it is clear that I will never recover the $300 that I invested.” They mavro growth is presently reduced from 100% to 20%. 10% below what we are getting in Nigeria (30%) for sustainability. And the mavro is also frozen for 14days

Nigerians enjoy why it last but watch out for this statement soon
“We regret to inform you that we have to close down the Republic of Bitcoin. It was an experiment, and, unfortunately, it failed,” the last Facebook entry on MMM Global Republic of Bitcoin states. “We turned out not to be able to pay 100% per month.”


References

http://www.financialwatchngr.com/2016/09/26/thousands-zimbabweans-lose-money-mmm-crashes/
Jump up ^ Transitions Online accessed April 12, 2007
http://coinjournal.net/mavordi-mmm-scam-declared-illegal-by-bank-of-china/
^ Jump up to: a b Bigg, Claire (March 15, 2012). "Jailed For Not Paying A Fine, Ponzi Scheme Founder Plots 'Financial Apocalypse'". RFE/RL.
Jump up ^ http://www.iol.co.za/news/crime-courts/russian-fraudster-hits-s-africans-1911289
Jump up ^ http://businesstech.co.za/news/banking/109899/russian-ponzi-scheme-raises-fraud-flags-at-sa-bank/
Jump up ^ "MMM is here to stay, say marching 'Mavrodians' | IOL". IOL. Retrieved 2016-04-28.
Jump up ^ "What is MMM". Retrieved June 10, 2016.
Jump up ^ "Gov't Warns Public about Websites Running 'Ponzi Schemes'_英文频道_手机财新网". m.english.caixin.com. Retrieved 2016-08-24.
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