Is MMM a ponzi scheme?

Have you ever heard about MMM? What do you know about Ponzi scheme? Is MMM a Ponzi scheme? Since 2011, MMM started its expansion in the African market. Many experts consider MMM the biggest and the most dangerous company on the planet, which is known for numerous fraudulent investment operations. Keep on reading the article to get to know more facts on this issue.

What is a Ponzi scheme?

What is a Ponzi scheme?

Is MMM a ponzi scheme?

A particular deceitful investment operation is called a Ponzi scheme. In this system, the operator (organization, individual) pays revenues to its investors from new capital, which is given to the operators by new depositors, rather than from income made through legitimate sources. As a rule, all operators in Ponzi schemes tempt new depositors by proposing much higher revenues than other investments. It is achieved in the form of immediate returns. They are either unusually consistent or abnormally high. Millions of people on the planet believe in the chance to earn easy money quickly.

https://player.nur.kz/service/commercial/k9hyzzmk

You should know that initially, all Ponzi schemes always start as legitimate businesses. It usually lasts until the company cannot achieve the expected returns. Moreover, such a business becomes a Ponzi scheme if it then keeps on operating under false terms. Thus, the continuation of the significant returns needs a steadily increasing flow of money from new depositors to ensure the scheme.

This scheme was named after the US citizen Charles Ponzi. He became disreputable for using such a method in 1920. The original system was founded on the arbitrage of intercontinental reply coupons for postage fee stamps.

Charles Ponzi

Is MMM a ponzi scheme?

READ ALSO: 8 things you can try to get your money back from MMM Nigeria

What is MMM?

In the 1990th, МММ (Mavrodi Mundial Movement) used to be a famous Russian company founded by a talented Russian businessperson Sergey Mavrodi. He is considered the godfather of one of the biggest Ponzi schemes on the planet of all time.

Russian businessperson Sergey Mavrodi

Is MMM a ponzi scheme?

According to various reports, it is estimated that up to 45 million people totally lost up to $12 billion. However, even MMM founders do not know the exact sums.

Sergei Mavrodi was arrested in Russia. He was sentenced to several prison terms for fraud.

Sergey Mavrodi is arrested

Is MMM a ponzi scheme?

In 2011, MMM Global was created. With up to 120 branches in each country, the company became extensively popular in many African countries. These are mainly South Africa, Kenya, Nigeria, Ghana, and Zimbabwe.

MMM in Nigeria

MMM Global launched the official site for Nigerian audience in November 2015. The company immediately promised a 30% monthly return with other admirable bonuses. MMM in Nigeria started to position itself as “a mutual aid fund where usual people can help each other.”

Therefore, the scheme has become especially popular amongst students and the unemployed.

MMM in Nigeria

Is MMM a ponzi scheme?

By the end of 2016, over 2,6 million people had already signed up at MMM Nigeria. Taking into account dark criminal history of MMM, Economic and Financial Crimes Commission of Nigeria immediately announced that they were closely monitoring this scheme.

On December 13, 2016, MMM proclaimed the freezing of all members’ accounts. It happened because the system overloaded. The company informed that the system would be fixed in a month. This news immediately led to full panic in Nigeria. Some people even wanted to commit suicide.

https://player.nur.kz/service/commercial/tukntg8f

Regardless of Nigeria government’s warnings against it, many Nigerians keep on investing in MMM. They continue to express confidence in MMM believing this company will bring them much profit.

MMM in Nigeria

Is MMM a ponzi scheme?

The government of Nigeria has been unmistakable in discouraging our citizens from contributing in MMM. The head of the Consumer Protection Department of the Central Bank of Nigeria, Hajiya Kadija Kassim, immediately called MMM fraudulent and advised citizens never to get involved in that scheme.

the Central Bank of Nigeria

Is MMM a ponzi scheme?

Moreover, the CBN attempted to break all financial transactions connected to MMM. Additionally, the Securities and Exchange Commission of Nigeria cautioned all its investors about this Ponzi scheme.

According to Nigerian financial analytics, many Nigerians continue bringing their money to MMM because pastors encourage them to do it during their preaching. As church and pastors are extremely influential in Nigeria, Sergei Mavrodi might have bribed many of them. Thus, priests urge its faithful parishioners to participate in MMM.

READ ALSO: I want to sell my MMM account with N140,000 inside for N15,000 – Member

Such MMM Ponzi scheme in South Africa, Ghana, Zimbabwe, and Kenya was also widely spread. This fraudulent activity led to financial instability. Therefore, all people finally realized that MMM is a Ponzi scheme.

Unraveling of a Ponzi scheme

When the authorities fail to stop a Ponzi scheme in its country, in any case it will fall apart for one of the following reasons:

https://player.nur.kz/service/commercial/bn22ky6c

  • The operator takes all the money of its investors and disappears. Such an unpleasant situation might happen unexpectedly when the Ponzi scheme founder thinks that he already has enough money.
  • A Ponzi scheme always needs a constant flow of investments to deposit higher returns. If a stream of money diminishes, the system immediately ruins because the operator begins having huge problems with paying the promised returns. As a result, panic starts. It resembles a situation with a bank bankruptcy.
  • A severe decline in the economy might make all investors extract their funds. In this case, a Ponzi scheme vanishes.

Conclusion

Many reputable international financial institutions have confirmed long ago that the notorious Russian company MMM had been responsible for one of the biggest Ponzi schemes on the planet of all time. Therefore, MMM is a standard Ponzi scheme. Financial experts unanimously do not recommend investing your money in such suspicious and fraudulent companies.

  • Questions and answers
  • Country
  • Share on facebook
  • Achieve
  • Ankara

Advertisements

Comments are closed.

Blog at WordPress.com.

Up ↑

%d bloggers like this: