WHAT IS REALLY MMM?
MMM was founded in 1989 by Sergei Mavrodi, his brother Vyacheslav Mavrodi, and Olga Melnikova. The name used for the company (MMM) was derived from the initial letters of the three founders’ surnames of this scheme. Clearing the misconception, it is not a Money Making Machine as many people think.
“Mavrodi was arrested in 2003. While in custody, Mavrodi was given until January 31, 2006 to read the documents in his fraud case against him. 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 (2003-2007), he was later released less than a month later, on May 22, 2007. He later went on to creating yet another pyramid scheme called MMM-2011.
In 2015 MMM began operating in South Africa with the same business model as MMM-2011, claiming a “30% per month” return through a “social financial network“. Also, in 2016, MMM launched a website targeting the Nigerian audience.
In January 2016 the Chinese government banned MMM on the grounds that it is a pyramid scheme, (Ponzi scheme), and it is not registered in the country (and as a fraudulent scheme cannot be registered).” Source: Wikipedia.com
What is MMM?
MMM (www.nigeria-mmm.net) is a scheme company that guarantees people a 30% interest in addition to their initial registration fee after 3-4 weeks. The system solely relies on referral system in where the company guarantees you commission of a certain percentage when you refer someone to their network.
The MMM-Nigeria based website reads thus:
“MMM is a community of people providing each other financial help on the principle of gratuitousness, reciprocity, and benevolence.
In MMM you don’t have to make contracts or pledge your property. In MMM there are no lenders and no debtors. Everything is very simple: one participant asks for help — another one helps.”
The Securities and Exchange Commission (SEC), has recently warned the general Nigerians on the activities of some online investment scheme specifically tagging this ponzi scheme called MMM.
The SEC’s website warning reads thus:
“The attention of SEC, Nigeria has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net).
The platform has embarked on an aggressive online media campaign to lure the investing public to participate in what it called ‘mutual aid financial network’ with a monthly investment return of 30 per cent.
“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, its operation is not registered by the Commission.”
Therefore, the Securities and Exchange Commission (SEC) urged the general public to stay-off of this online scheme which is a deceptive one. Also, adding that this is unsystematic risk that is whoever joins this scam does so at his/her own risk. Describing this as an unsystematic risk shows that it is just a scam because nobody gets compensated for an unsystematic risk; it is a risk you can avoid, that is, it is an avoidable risk.
Before my analysis to prove you that MMM will soon crash, we have all heard and read the news that South African and Zimbabwean branches of the MMM scam have crashed in which many people have lost huge amount of money. With this news, Nigerians remain adamant and still putting their money in the scheme. Funny enough, you see many Nigerians defending the scam scheme; I think my mail will be bombarded with responses and other negative words with the fanatic members of this scheme after reading this article.
It is advisable to stop risking your money on such system. Though you might be making your cool cash money from it, there is a high possibility that you will lose it all. I am telling you, it is just a matter of time till the law catches on, or Sergey Mavrodi decides to close down the racket.
The only thing that MMM demands from its participants is, to be honest and kind to each other. You ask for financial help when you need it, you give financial help when you are able to do it.”
It doesn’t matter if people are making money. One day you will get burned.”
MMM is not actually the first ponzi scheme, you can also read here: 10 Of The Biggest Ponzi Schemes In History
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