Sergei Mavrodi, MMM Founder Dies At 62
Sergei Mavrodi, the Russian businessman whose MMM pyramid scheme stripped millions of Russians of their savings in the 1990s, has died of a heart attack, Based on Russia media.
Reports the 62-year-old was rushed down to the hospital late on March 25 with pain in his chest and died several hours later.
Mavrodi’s MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their gain from subsequent investors. Mavrodi promised to pay back 20 percent to 75 percent a month, as well as lotteries and also bonuses for all investors.
As soon as the number of people stopped growing, the pyramid collapsed, which causes huge financial losses for at least 10 million people, in some cases leaving them poor.
In 1994, Mavrodi was selected as a lawmaker, a decision he later said was to assure he received immunity from prosecution. In 1996, he lost his parliamentary mandate.
In 2007, a Moscow court found him guilty of financial fraud, and he has sentenced him to 4 1/2 years in a penal colony.
In 2011, 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. Some 15 months later, Mavrodi halted the project.
From 2011-16, Mavrodi launched Ponzi schemes under the MMM brand in India, China, South Africa, Zimbabwe, and Nigeria.
In many of those countries, MMM operations were afterward shut down or suspended.