Russian businessman and
founder of the "MMM" Pyramid scheme, Sergei Mav-rodi, is dead.
According to Russian media, Mavrodi who’s "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.
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