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Beware of Mavrodi Mondial Moneybox (MMM) - it is an Old Russian Ponzi or Pyramid Scheme

2016-11-18T14:30:17 -  +
Beware of Mavrodi Mondial Moneybox (MMM) - it is an Old Russian Ponzi or Pyramid Scheme

Online users are being tricked into investing their money into a very old Russian Ponzi or pyramid scheme called MMM. MMM, a Russian company started in 1989 by Sergei Mavrodi, a Russian ex-convict, his brother Vyacheslav Mavrodi, and Olga Melnikova. The name of the company was taken from the first letters of the three founders' surnames. The company perpetrated one of the world's largest Ponzi schemes of all time in the 1990s, where an estimated 5 to 40 million people who invested in the company lost up to $10 billion, after Mavrodi declared MMM bankrupt in September 1997.

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Mavrodi managed to escape arrest until 2003, when he was captured and convicted for holding a fake passport and tax-related offences. After he was released from prison he started MMM branches in Russia, Ukraine, the Baltic States, and African, claiming he wanted to "destroy the global financial system." He claims that MMM is a "community of ordinary people, selflessly helping each other, a kind of the Global Fund of mutual aid."

In 2011 he announced the establishment of an investment pyramid called MMM-2011, that was declared bankrupt in 2012. By that time, he started project MMM-2012, a financial scheme that collapsed shortly after it was created.

MMM claims that participants who donate money are eligible to request for the amount donated plus 30% interest after a month. But, without any of form of investments, products or services, how do MMM make money in order to pay back participants with interest? The truth is, money from new participants or members is used to pay old participants. And, once MMM is unable to recruit new participants, the scheme will crash, causing participants to lose their money.

Once of MMM's most popular websites is: www.nigeria-mmm.net.

Online users are asked not to register or participate in any activities on any of Mavrodi Mondial Moneybox’s websites. And, participants who have already registered are asked to stop sending money.

What is a Ponzi or Pyramid Scheme?

A Ponzi or pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.

In a pyramid scheme, an organization compels individuals to join and make a payment. In exchange, the organization promises its new members a share of the money taken from every additional member that they recruit. The directors of the organization (those at the top of the pyramid) also receive a share of these payments. For the directors, the scheme is potentially lucrative - whether or not they do any work, the organization's membership has a strong incentive to continue recruiting and funneling money to the top of the pyramid.

Such organizations seldom involve sales of products or services with value. Without creating any goods or services, the only ways for a pyramid scheme to generate revenue are to recruit more members or solicit more money from current members. Eventually, recruiting is no longer possible and most members are unable to profit from the scheme.

Please share with us what you know or ask a question about this article by leaving a comment below. Also, check the comment section below for additional information, if there is any.

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Comments, Questions and Reviews
(Total: 7)

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  • Posted: 2017-07-10T08:40:46 by an anonymous user from or near: Amsterdam, North Holland, Netherlands

    I lost my 13.000 $. And I am waiting. Mmm, is saying just wait. How may days, I don't know.

    delete


  • Posted: 2017-01-28T07:57:03 by an anonymous user from or near: Lagos (Ikoyi), Lagos, Nigeria

    Is twinkas.com real or fake?

    delete


    • Posted: 2017-01-28T08:04:03 by info

      It is a fake, another Ponzi or pyramid scheme.

      delete


  • Posted: 2017-01-20T19:57:14 by an anonymous user from or near: Punjab, India

    Social trade biz or web work is real or fake .I want to invest in these sits .plz tell me

    delete


    • Posted: 2017-01-20T20:48:39 by info

      Please give us a link to the websites.

      delete


  • Posted: 2016-12-20T17:51:45 by an anonymous user from or near: Lagos, Nigeria

    Does it mean that those that invested in MMM has lost their money?

    delete


    • Posted: 2016-12-20T18:08:22 by info

      Not until the pyramid scheme fails, which it always does. I was once a victim of a similar pyramid scheme that failed the first month that I was supposed to receive my pay-out or returns.

      delete


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