Embassy of
the Russian Federation
in the Republic of South Africa

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tel: +2712 362-1337
fax: +2712 362-0116
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Consular Section
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fax: +2712 362-7090
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   RUS

updated 6:55 AM UTC, Oct 17, 2017

Attention: MMM-2011

   MMM-2011 is a financial pyramid scheme, founded by Sergei Mavrodi, a Russian citizen who was found guilty by a Russian court of defrauding over 10 thousand private investors of  $4, 3 million through his company MMM established in 1989.

   Initially the MMM was a computer and office equipment importing company, that over time converted into a Ponzi scheme in 1993. The company attracted private investors’ money, promising annual returns of up to 1000%. In February 1994 MMM started an aggressive TV advertising campaign making the public believe its shares were a safe and profitable investment. And yet, in July 1994 the MMM offices were closed by police for tax evasion and the company ceased its operations.

   MMM has not refunded money to its investors ever since, with at least 50 of them committing suicide, and the real damage by Mavrodi and its MMM is estimated much higher than was established by the court of law.

   In 2003, the MMM founder Mavrodi was found and arrested by police, convicted of multiple frauds, and spent four years in prison. After his release in 2007 he got down to creating a new pyramid scheme called MMM-2011.

 

 

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