The Whole Truth About MMM Nigeria Ponzi Scheme!!!

You will know the truth and the truth shall set you free! So says the Bible.

Now, here is the whole truth about MMM Global in Nigeria or MMM Federal Republic of Nigeria.

MMM Nigeria which was launched in 2016 is widely proclaimed as the last hope of the suffering masses in Nigeria to get out of recession.

Even little children now join in the nationwide campaign. "Join MMM, Register today and begin to earn 30% on your donation monthly. MMM is a Mutual Aid! But, take note, you could lose all your money!"

Perhaps you already know that by joining MMM Nigeria, you are joining a global mutual aid program which thrives mainly on freewill donations from members of the community. I am pretty certain that you have also been made aware of the importance of starting out with only your spare money (money you can afford to lose) in the scheme.

MMM Global, The Ponzi Scheme Company Is In Nigeria

For the sake of historicity, MMM was first extablished in Rushia in 1989 and the acronym stands for Mavrodi Mondial Moneybox. It takes its name from its founder, Sergey Panteleevich Mavrodi of Russia.

But, what you may not know is that MMM Global is a fraudulent establishment whose leader Sergey Mavrodi was first arrested in 1994 for tax evasion and again re-arrested in 2003 for defrauding more than 40 million people of at least USD10 billion.

The events following this led to the company being declared bankrupt and shut down three years later. Mavrodi promptly disappered into thin air to evade capture but was eventually apprehended in the year 2003.

Mavrodi was given until January 31, 2006 to read the documents in his fraud case against him (The criminal case consisted of 650 volumes, each 250-270 pages long) during his stay in detention.

At the end of April 2007, Mavrodi was convicted of fraud, and given a sentence of four and a half years. Since he had already spent over four years in custody, he was released less than a month later, on May 22, 2007. He later went on to creating yet another pyramid scheme called MMM-2011.


Is MMM Nigeria a Ponzi Scheme?

What is a Ponzi scheme? The scheme (also a Ponzi game or a Ponzi) is an investment operation, where the operator, an individual or organisation pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate investments.

As reported by Fin24, MMM Global in its usual manner operated a platform where its members are encouraged to donate money to others by rewarding them with the bitcoin-linked virtual currency - Mavros - in return, and can apparently get 30% return on their rand investment by doing so.

Beware! MMM Global, The Ponzi Scheme Company Is In Nigeria

However, it is common knowledge that a scheme is a Ponzi scheme when expected return is 20% higher than the repo rate. To the amazement of any reasonable person, many South Africans still fell victim of the scheme despite the fact that the repo rate in SA is 7%.

Can you imagine that when Sergey Mavrodi created his successful Ponzi scheme in 1994, he started attracting money from private investors, promising annual returns of up to one thousand percent? 1,000%! That alone coupled with the aggressive TV ad campaign accounted for the rapid growth of MMM within so short a time.

Even now that returns is much reduced (30%), the scheme still is a ponzi scheme.

Just as it was back then when the shares were not quoted on any stock exchange and the company itself determined the share price leading the public to believe its shares were a safe and profitable investment, so the scenario is playing itself out all over again.

Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent - just as it is the case with MMM Nigeria.

Initially, the promoter would pay out high returns to attract more investors, and to lure current investors into putting in additional money into the scheme. Other investors would begin to participate, leading to what is known as a cascade effect. The "return" to the initial investors is paid out of the investments of new entrants, and not out of profits.

Often, the high returns encourage investors to leave their money in the scheme, with the result that the promoter does not have to pay out very much to investors; he simply has to send them statements showing how much they have earned. This maintains a semblance that the scheme is an investment with high returns.

But, eventually it all ends as abruptly as it begun because the returns and payouts are not sustainable since they are not at equilibrum with new investor funds injected into the system.

The whole ponzi pyramid scheme collapses in the end like a pack of cards without a solid foundation to hold it on the ground.

MMM Global - Already in 118 Countries!

When you visit the MMM Nigeria website, you are greeted by the big header: "We are already in 118 countries! MORE THAN 200 MLN PARTICIPANTS AROUND THE WORLD".

MMM Global, The Ponzi Scheme Company Is In Nigeria

But, you likely know that when people see information on websites like that, they tend to believe it blindly and spread it through word of mouth when they tell others.

Much worse, website publishers too who do not care to verify the information also spread the misleading information through their websites.

So, the false information quickly become widespread and popular and accepted as a statement of fact - establishing the company as a legitimate online organisation.

However, nobody stops to ask the question: "Which countries?"

So, I googled for the information "MMM Global in 118 countries" and do you know what I came up with?

There was no mention of MMM Global in 5 countries much less 118 countries. What I found out is that Mavrodi launched a similar scheme in India, called MMM India in 2011, stating clearly that the vehicle is a pyramid. He also launched MMM in China.

He was reported to be trying to expand his operations into Western Europe, Canada, and Latin America. No mention of MMM Global in 118 countries. Can you imagine that? A huge scam!

Perhaps you also did not know that MMM Global was banned in China and operated in Zimbabwe and South Africa but collapsed after a short time due to the inability of the perpetrators of the scheme to meet up with their obligations to the participants.

MMM Global only gave South Africans the bad news with a post on its website saying "We regret to inform you that we have to close down the Republic of Bitcoin. It was an experiment, and, unfortunately, it failed. We turned out not to be able to pay 100% per month."

Just imagine that!

An organisation which has been operating since 1989 claiming to be performing an experiment in 2016 - almost 30 years after? It can only mean one thing. The people have been scammed!

What Do You Call This If Not Scam?

The more I did research on the MMM Global thing the more I come up with only one conclusion - the whole "power of giving help and be helped" slogan is a huge charade, a sham and definitely a scam!

Take a look at the following information posted on the MMM Global website:

"MMM = Mavrodi Mondial Movement.

MMM is a Mutual Aid Funding network of ordinary people helping each other.

MMM is not a Bank and has No Central bank Account.

MMM Has no Central Office or Branch Offices

MMM does not collect your money. Participants pay each other directly.

MMM is not an online business, HYIP, investment or MLM program.

MMM is a community where people help each other.

MMM provides the technical platform which helps millions of participants worldwide to connect those who NEED help to those who are ready to PROVIDE help, for FREE.

All transferred funds to another participant are your help given by your own good will to another one, absolutely gratis.

MMM is not mandatory, or by force, its individual choice."

MMM Global, The Ponzi Scheme Company Is In Nigeria

And also this:


There are no guarantees and promises! Neither explicit nor implicit.

There are neither investments nor business! Participants help each other, sending each other money directly and without intermediaries. That's all! There's nothing more.

There are no securities transactions, no relationship with the professional participants of the securities market; you do not acquire any securities. (Do you need them? :-))

There are no rules. In principle! The only rule is no rules. At all! Even if you follow all of the instructions, you still may "lose". "Win" might not be paid. Without any reasons or explanations.

And in general, you can lose all your money. Always remember about this and participate only with spare money. Or do not participate at all! Amen. :-))

Citizens of Russia, Kazakhstan and Belarus are not allowed to participate in MMM."

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Is there any warning that can be more explicit than that? You can lose all your money without any reasons or explanations! Wonderful!

Please tell me what do you call this if not scam? "There are neither investments nor business! And you can lose all your money"!

Despite those stern warnings people will still go ahead and put their money into the rogued scheme! Simply unbelievable!

If there is no investments, no business, no bank account and the people are brainwashed with the concept that "participants help each other", what stops Sergey Mavrodi from simply telling all the members to pay money into certain accounts which he had opened simply for the purpose of defrauding everybody and varnish into thin air?


BVN? Forget about that! Who told you that BVN cannot be manipulated so that a single individual can have several BVNs at the same time under different names? If it can be done with International Passports, why do you think the same thing cannot be achieved with BVN?

Believe me. The only persons who will ultimately "get helped" in the whole scam saga are Sergey Mavrodi and those who cash in early and are smart enough to bow out before the crash.

Doubting Thomases like myself who are skeptical about the whole thing and join the scheme late as well as those who are greedy to continue with the scheme despite being lucky enough to make some money from the system will be the biggest losers of them all.

So better make a run for it while there is still time!

Is MMM Registered to Operate in Nigeria?

Can you believe that MMM is not registered to operate in Nigeria?

In a statement issued to the press on August 30 2016, the Securities and Exchange Commission (SEC) informed the public that MMM Global was not registered to operate in Nigeria. The commission also warned the public against participating in the online investment scheme, tagged 'MMM Federal Republic of Nigeria ('.

Continuing, the statement said: "The Commission hereby notifies the investing public that the operation of this investment scheme has no tangible business model, hence it's a Ponzi Scheme, where returns are paid from other people's invested sum. Also, the Commission does not register its operation.

"The general public is hereby advised to distance itself from this online scheme. Please note that anyone that subscribe to this illegal activity does so at his/her own risk."

But, if all these are true, why is it that many Nigerians have firm conviction in the organisation's ability to always deliver on its promise of returning both their "capital" and a 30% returns on their investment without fail?

In one, no two, words, it is BLIND FAITH!

And with this recession biting hard and the poor being the hardest hit of all, they would gladly welcome any scheme that offers an easy, stress-free way to get out of poverty and the recession.

In that kind of situation, the people would chose to believe that their only means of survival - MMM - cannot and will not fail. The peddlers of the scheme do not need to do anything more. The people are fully convinced and will cook up all excuses and justifications to continue to put their money in the scheme.

For instance, the manufacturers of tobacco warn people that "smokers are liable to die young". But, does that stop people from smoking? They will tell you that even many non-smokers die young.

Beware! MMM Global, The Ponzi Scheme Company Is In Nigeria

What about people who die from accidents or other natural causes? Is it smoking tobacco that killed them?

So, how can you prove that it is only smokers that die young?

Staunch believers in the MMM ponzi pyramid scheme have also developed their own justification of the scheme. They will tell you: "Life itself is a risk. MMM pays and we are well aware of the risk involved."

Very easy to say. But when MMM crashed in Zimbabwe, it was not funny then.

So many people lost millions of money to the rogued scheme.

"All along things were moving in the right direction and we now have nowhere to claim our investments," said Mr Tinashe Muza of Harare.

"When we started putting our funds in the scheme one could get assistance within seven days but things later changed to 14 days and when we were shut out the waiting period was 21 days. What it simply means is that the number of people in need of help has outnumbered the number of people joining. Right now we have nowhere to get our money which we invested."

The same thing happened in South Africa. Many who thought the scheme would not crash were left to lick their wounds even many months after the ponzi pyramid scheme collapsed.

A day before it collapsed in South Africa, BehindMLM, a website that reports news on Ponzi Schemes and Multi-level Marketing (MLM) warned the public saying:

"The financial apocalypse is upon us, MMM Global has collapsed,"

"MMM Global's Ponzi clones offering a lower percentage haven't 'proved' themselves any more than MMM Global did,"

Another victim, Mrs Rosemary Mawonde said: "We never thought the scheme would end this way as we believed that by using EcoCash to do the transactions, things were in order. I am surprised that EcoCash is also distancing itself from the scheme and it is clear that I will never recover the $300 that I invested."

While some people who were skeptical about the scheme started with small amounts, it is believed some poured in thousands of dollars anticipating higher returns. The RBZ said the schemes were fraudulent as existing investors were "paid money not from genuine market investment of their funds, but from contributions made by new investors, until a point when the scheme can no longer attract new investors."

Ask yourself: If MMM Global operates a legitimate business that is recognised in "118 countries", why would it not be registered in Nigeria?

Why would it be banned in China and even its home country Russia?

Compare this analogy: If it is an animal and it is hairy, it must be a fox.

If an international company is banned in two countries and has collapsed in more than two other countries, what is the reasonable conclusion to reach about that company and its subsequent operations in other countries which it may go and set up shop in?

I will leave the conclusion to you to figure it out for yourself!

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MMM Nigeria Thrives on Lies and Propaganda!

Do not be deceived! MMM Global has been thriving on pure propaganda and lies!

By the way, MMM created its first successful Ponzi scheme in 1994. Due to the dividends of 1,000% declared, MMM grew rapidly. The extremely aggressive TV ad campaign which appealed to the general public by using "ordinary" characters that viewers could identify with was a major factor which accounted for this success.

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 roomfuls (1 roomful of money, 2 roomfuls of money, etc.).

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 publicising their expected income.

On July 22, 1994, however, 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 (from USD 50 million to USD 1.5 billion).

Events which followed the collapse led to the tragic suicide of not fewer than 50 investors, who lost all of the money invested to the crash.

According to the report published in online media, several organisations of some people who were tagged as "deceived investors" by the ponzi scheme mogul made efforts to recover their lost investments, but Sergey Mavrodi manipulated their indignation and directed it at the government.

In August 1994 Mavrodi was arrested for tax evasion. However, he was soon elected to the Russian State Duma, with the support of the "deceived investors". He argued that the government, not MMM, was responsible for people losing their money, and promised to initiate a pay-back program. The amount ultimately paid back was minuscule compared to the amount owed.

That is the whole truth about the dark history of MMM Global. But, many adherents of the MMM community have been brainwashed to believe something different. They are made to believe that MMM was closed down in Russia because the company became richer than the Russian government and all the banks put together.

Can you believe that? That is the extent that the proponents of the pyramid scheme would go to in order to use propaganda and lies to give legitimacy and credibility to the ponzi pyramid scheme.

They do it so cleverly that even a smart person will get carried away with such huge fallacy and outright lies.

Sergey Mavrodi - A Clever Scammer!

The man Sergey Mavrodi is a clever scammer indeed! He knew that if he was going to succeed with his scheme, he would need to appeal to the emotions of his target audience.

Since his first successful ponzi scheme in 1994, he has improved and expanded on the concept of providing help and receiving help through a social financial network. Now, he can quickly amass millions of dollars within a short time through community effort of the participants. Clever Rogue indeed!

According to Wikileak, the online information library, MMM Global was a Russian company that perpetrated one of the world's largest Ponzi schemes in the 1990s. By different estimates, between five and 40 million people lost up to $10b. The website said the exact figures of money lost are not known, even to the founders.

The site described Sergey Mavrodi as a Russian criminal and a former deputy of the State Duma in Russia. According to it, he is the founder of the series of pyramid schemes in the country. Wikileak reported that in 2007, Mavrodi was found guilty in a Russian court of defrauding 10,000 investors out of 110m rubles ($4.3m).

Additionally, "In January 2011, Mavrodi launched another pyramid scheme called MMM-2011, asking investors to buy so-called Mavro currency units he frankly described as a pyramid, adding, "It is a naked scheme, nothing more...

People interact with each other and give each other money. For no reason!" Mavrodi said his goal for launching MMM-2011 is to destroy the current financial system, which he considers unfair, and form something new to take its place."

A Word is Enough for the Wise!

Managing Partner, Two-Edge Partners Global Limited, Olajide Alex-Oni said the ponzi pyramid scheme is usually targeted at the extremely poor, greedy and desperate people of the society.

He said: "The get rich quick scheme usually comes out looking so attractive to the populace, but like what is, it is robbing Peter to pay Paul!"

He also continued: "When a company encourages existing investors to invite other potential investors by rewarding them with money from these new comers, then what do you call that?

Such a model is not sustainable and is a highly risky investment, because once the flow of investors and their funds stop flowing into the scheme, the investors will most definitely suffer unimaginable losses."

Speaking on MMM operations, he said a number of countries around the world have banned this scheme and Nigeria should equally do the same. He said since SEC has warned Nigerians on the activity of this group, it is, therefore, illegal to invest in them, because their model is a typical pyramid scheme.

He explained that the scheme was not licensed to operate in Nigeria, noting that its operations are online based, which can crash or get closed down unannounced. He said it's designed to attract huge traffic and promises unconventional high returns on investment.

Speaking further, Alex-Oni warned: "People have to be careful of such schemes, because they claim to be foreign investor driven with amazing success stories, thus the attraction for the ignorant. The ignorant in this case are usually aware of the risk involved, but the greed in them let them take such risk with the hope to exit before the scheme crashes.

"It is also quite sad that in some extreme cases, some investors actually commit their entire life savings into these kinds of ponzi schemes. People should learn to get creative and innovative through hard work and smart thinking and start creating values and ideas that money will chase. That way, you may start small, but you will think big to grow big the proper way. A warning is enough for the wise."

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