MMM Scheme

MMM The Scheme Unmasked...

Sergei Mayrodi's profitable company?

When in early 2011, Sergei Mavrodi launched a new pyramid scheme (MMM) nobody could ever imagine how much of an influence it would bring. What is MMM 2011 - a stable system with millions of members worldwide, who are the real income of each month and "improve" their financial situation. Abbriviatura MMM stands for - "We can do a lot" - that is the appointment of Sergei Panteleevich who treats his creation. MMM-2011/2012 MMM as a global mutual insurance fund, operating on the principle of "Today helped you - tomorrow will help others."  

 "This is a chance not just to earn money quickly, but also to help their fellow man! It's hard to believe, but people are already invested 75% of their deposits on a monthly basis - such interest payments are not offered by any bank in the world, so using MMM for interest seems like a good idea.  Money can be removed at any time and without limitation, all done for the convenience of investors!

One and a half years of its existence in the new MMM 2011 earned more than 35 million depositors, and the number of participants continues to grow rapidly. The new project MMM 2012 is radically different from any pyramids existed before: the system is controlled by the participants, they also make payments to each other on personal accounts. There is no such entity "Company MMM", there is no central office or store of money, money is dispersed among all the participants - they just physically can not lift off and disappear. All processes are carried out via the Internet. All members are accountable to each other, so that any of them can control the actions of another. Therefore securing any creators from getting into trouble for using and more likely losing people's invested money. 


Although it may seem like a sceme that people would not agree too, there is clear evidence that MMM was established in previous years and has racked in profit. MMM created its successful Ponzi scheme in 1994. The company started attracting money from private investors, promising annual returns of up to 1000%  It is unclear whether a Ponzi scheme was Mavrodi's initial intention, inasmuch as such extravagant returns might have been possible during the Russian hyperinflation. 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 investment.

An important factor in the scheme's success was word of mouth, but most of the company's success came from its extremely aggressive ad campaign, which appealed to the general public by using "ordinary" characters that viewers could identify with.  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 rooms. 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 publicizing their expected income.

On July 22, 1994, the police closed the offices of MMM for tax evasion. For a few days the company attempted to continue the scheme, but soon ceased operations. At that point, Invest-Consulting, 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. In the aftermath at least 50 investors, having lost all of their money, committed suicide.

As of 2012, MMM has once again established its pyramid and continues to persuade people to invest in their company, therefore risking your money. As always, be careful before you invest because out in our economy, no company can guarantee you a true income.