Russian MMM Pyramid Scheme Founder Reported Dead<\/p>\n
Russian businessman Sergei Mavrodi, whose MMM pyramid scheme deprived millions of Russians of their savings in the 1990s, has died of a heart attack, according to Russia media.<\/p>\n
Reports said the 62-year-old was rushed to the hospital late on March 25 with pain in his chest and died several hours later.<\/p>\n
Mavrodi’s MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors. Mavrodi promised returns of 20 percent to 75 percent a month, as well as lotteries and bonuses for investors.<\/p>\n
As soon as the number of new clients stopped growing, the pyramid collapsed, causing huge financial losses for at least 10 million people, in some cases leaving them destitute.<\/p>\n
In 1994, Mavrodi was elected as a lawmaker, a decision he later said was to ensure he received immunity from prosecution. In 1996, he lost his parliamentary mandate.<\/p>\n
In 2007, a Moscow court found him guilty of financial fraud and sentenced him to 4 1\/2 years in a penal colony.<\/p>\n
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.<\/p>\n
From 2011-16, Mavrodi launched Ponzi schemes under the MMM brand in India, China, South Africa, Zimbabwe, and Nigeria.<\/p>\n
In many of those countries, Mavrodi’s operations were subsequently shut down or suspended.<\/p>\n","protected":false},"excerpt":{"rendered":"
Russian MMM Pyramid Scheme Founder Reported Dead Russian businessman Sergei Mavrodi, whose MMM pyramid scheme deprived millions of Russians of their savings in the 1990s, has died of a heart attack, according to Russia media. Reports said the 62-year-old was rushed to the hospital late on March 25 with pain in his chest and died […]<\/p>\n","protected":false},"author":2,"featured_media":9343,"comment_status":"open","ping_status":"closed","template":"","tags":[],"news-category":[323,322],"yoast_head":"\n