Mavrodi’s whose MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors, promised a returns of 20 percent to 75 percent a month, as well as lotteries and bonuses for investors.
Reports say between 10-15 million people in China, Zimbabwe, South Africa and Nigeria lost money invested in the scheme.
Mavrodi became a member of the Russian parliament in 1994, a decision he later said was to ensure he received immunity from prosecution but he was stripped of his mandate in 1996.
Found guilty in a Moscow court for financial fraud in 2007, he was sentenced to 4 and half years in a penal colony.
In 2015, the Ponzi scheme MMM, started in Nigeria when it launched a new website for Nigerians. About 2.4million Nigerians invested in it as the company promised a profit of 30 % monthly.
The scheme did not last long as the organization froze the accounts of participants at the end of 2016, leaving many of the subscribers in financial ruin.
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