MMM Scam Creator Sergey Mavrodi Has Died
Sergey Mavrodi the founder of the MMM scam has passed away today in Moscow. The day before Mavrodi was hospitalized from a bus stop on Polikarpov Street. A casual passer-by called him an “ambulance” – Mavrodi complained of weakness and pain in his heart. – Source mk.ru
Sergey Mavrodi was born in Moscow in 1955. In his childhood, he found out that he had bilateral heart disease. It looks like this has finally caught up with him.
Mavrodi studied at the Moscow State Institute of Electronics and Mathematics at the Department of Artificial Intelligence. He has been involved with many illegal activities.
In 1983, he was arrested for ten days for illegal economic activities: Piracy. Piracy did not bring in much money, and Sergei Mavrodi decided to start a “career” in the financial sphere. – Source ria.ru
Here are some of his financial scams:
In 1989, Mavrodi founded the company “MMM”. Initially, the company focused on trading and finance, not attracting much attention. Five years later, “MMM” issued its first shares, and then, bypassing legal restrictions on the volume of shares, began issuing “MMM” tickets. In fact, it was just a colored paper. The tickets resembled Russian currency, only with portraits of Mavrodi. The price was one thousand rubles. These tickets grew in value as more investors were brought into the Ponzi scheme.
The police took down MMM in 1997. The company was declared bankrupt, Mavrodi was put on the wanted list. This did not stop his scamming.
In 1998 he created a virtual stock exchange Stock Generation Ltd. The company was registered in the Caribbean. The stock exchange offered to trade shares of non-existent companies (there were 11 in all), using real money, and promised huge profits. The minimum payment, from which it was possible to start bidding, was $50. In 2000, this “market” collapsed. 250 thousand people were victimized by this scam – mostly citizens of the United States, Canada, Europe and Australia.
Sergey Mavrodi was found by police in 2003 in Moscow. Mavrodi received 4.5 years. About ten million people suffered from MMM’s activities.
In 2007, Mavrodi left prison and promised “to do something” to “return money to investors.” In January 2011, he relaunched the MMM scam as MMM-2011. It was another Ponzi scheme and It lasted about one and a half years, 35 million people took part in it.
MMM Global was next for him. This is what Sergey Mavrodi said about MMM Global:
There are no guarantees and promises! Neither explicit nor implicit.
There are neither investments nor business! Participants help each other, sending each other money directly and without intermediaries. That’s all! There’s nothing more.
There are no securities transactions, no relationship with the professional participants of the securities market; you do not acquire any securities. (Do you need them? :-))
There are no rules. In principle! The only rule is no rules. At all! Even if you follow all of the instructions, you still may “lose”. “Win” might not be paid. Without any reasons or explanations.
And in general, you can lose all your money. Always remember about this and participate only with spare money. Or do not participate at all! Amen. :-))
The MMM Global Ponzi scheme collapsed in 2016.
After the collapse of MMM Global, the MMM scam has moved from country to country . Let’s hope with the passing of Sergey Mavrodi this scam will finally end.