Mavrodi, MMM founder dies of heart attack at 62

Mavrodi died at 62

Russian Controversial entrepreneur, businessman and founder of the Ponzi Pyramid scheme, MMM, Sergei Mavrodi has died.

According to Russian media, Mavrodi whose MMM pyramid scheme made or marred thousands of Nigerians between 2015 and 2017 died of a heart attack.

Radio Free Europe/Radio Liberty reports Monday that the 62-year-old was rushed to the hospital late on March 25 with pain in his chest and died several hours later.

Mr. Mavrodi’s MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors. It also promised returns of 20 per cent to 75 per cent a month, as well as lotteries and bonuses for investors. 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.

In 1994, Mr. Mavrodi was elected as a lawmaker, a decision he later said was to ensure he received immunity from prosecution although he later lost his parliamentary mandate.

A Moscow court found him guilty of financial fraud in 2007 and sentenced him to 4 1/2 years in a penal colony.

Mr. 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. The project was however halted after a few months.

Between 2011 and 2016, Mr. Mavrodi launched Ponzi schemes under the MMM brand in India, China, South Africa, Zimbabwe, and Nigeria.

The operations were subsequently shut down in many countries, including Nigeria.

In Nigeria, the operation shut down in December 2016 as many investors withdrew money for the yuletide. Months later in 2017, it returned, ran for some months before inevitably crashing again.

The Ponzi notably turned some into emergency millionaires in the country, while costing many others millions.