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Is MMM a Scam? 10 Reasons That Prove MMM Scheme will Crash

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Going down in the history, we shall understand what MMM really stands for. Is MMM a new scheme? Well, Is MMM is a business? Also, Is MMM an investment? Let get to know the history. What is really the full meaning of MMM? Is it the popular meaning given to it as Money Making Machine?
According to the popular site Wikipedia, “МММ was a Russian company that perpetrated one of the world’s largest Ponzi schemes of all time, in the 1990s. By different estimates from 5 to 40 million people lost up to $10 billion.  The MMM Ponzi scheme was shut down by Russian Police in 1994 and declared bankruptcy in 1997.

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:

What is MMM?
MMM ( 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.”

However, targeting the Nigerian audience has started in 2016 in which the MMM Nigeria based site has boasted of over 500,000 members on its website. Is that a sign of flourish or stumble?

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 (

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.

I ask myself despite the warning from such an authority and facts available online about the founder of this scam scheme, Mavrodi, who is the engineer and brain behind this global scam many Nigerians are just signing up for this latest version of his scheme in Nigeria. Should we say because of poverty? No, I don’t agree. Or should we say recession? I don’t think recession should be an excuse to be gullible and blind-folded with bait. Pitiable enough, many Nigerians put in their hard earned income into this scheme which will soon collapse. Are you shocked that it will collapse soon? Or do you think that how will it collapse? I will analyze it below.

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.

Prior to this post, I have had chat with many Nigerians who are into this asking them questions relating to this MMM of a thing. The answers are just random; the answers are just my brother make your cool cash and leave the scheme. At least, it fetches you money without investment or stress.
The fact still remains that, many Nigerians know nothing about this scam scheme; what they know or understand is just that put your money and get 30% of interest in addition to your initial deposit. As a student in a field that relates to business, I believe you must carry out feasibility study on any business or investment before pooling your resources into such business or investment. With your feasibility study, many questions will be answered like;
The viability of the business

The Profitability of the business or investment

The future of the business

The risk associated with the business

The past trend (historical records) of the business and others

The significant of the business in the Economy
Asking myself these questions, I see that MMM is not worthy of putting my or your money into. The SEC, CBN and other financial authorities that have warned the general public have meaningful reasons for their statements. Now, answering the questions above with the MMM scheme;
Is MMM a viable business or investment?
No, MMM is neither a business nor an investment. Are you surprised that it is not a business? No, it is not. Looking at the definition of the MMM on the website of the company, you will see that it is not stated there as a business or investment but a helping hand process, that is, reciprocal financial help.
As defined by them, it is a community to help each other. I asked myself, is it a donation or charity community? As a member of this scheme (not me), the question is left to you to answer. I believe a charitable programme like MMM should not be called a business or investment. The fact still remains that, the deceptive bait called the commission of 30% of interest on your initial deposit has brainwashed and taken away the insight of many Nigerians to see the truth behind the scheme.
Is MMM profitable?
Without a doubt, the profitability of any business or investment is subjective. The definition of profit varies and depends on the investor. Taking the MMM scheme as a case study, I see it not as a profitability scheme. Did you say why then? No, it is not. In the sense of business or investment, it is not profitable. The question bothering your mind now is that but they give 30% commission to their subscribers and even fixed a percentage of commission to any person that refers another individual into the scheme. Ask yourself today, where are the 30% commission and other commissions come from? I think from heaven!
Since MMM is a platform to help others financially neither a business nor an investment, then, how is the interest or profit given to the people in this scheme is gotten? I even ask these fanatic people of the scam scheme, is Mavrodi, the founder of this scheme making profit from this programme? How is he calculating the profit? How is the 30% commission given to people covered? My brothers and sisters shine your eye!
Does MMM has a future?
Before pooling your resources together and put it in this scam scheme, ask yourself this simple question, does it has a future? You investing your money in a scheme or programme that will not last longer is like buying a share in a company that will soon fold. Where holds the future of MMM? Ask yourself my brothers and sisters. A company so calling themselves who has no plough-back profits to maintain the running activities of the company rather than relying on the new intake will surely fold up. The examples from neighbouring countries have shown the future of MMM holds nothing than futile.
What risk associated with MMM?
MMM with risk? Many fanatic members of this scheme will never see any risk associated with this scam scheme. They even believe it is a risk-free programme as if it is a government bond. No investment or business in this world, all businesses are risky but it may vary. MMM tells you no risk associated with the programme. Have you ever heard a private institution engaging in a business without profit? If no, then, all private investments or businesses are risky except it is not a serious institution.
What are the historical records of MMM?
I believe with what you have read from the first paragraph of this post you will see that history or past records don’t favour this MMM of a name. MMM has a negative reviews with the atrocities caused by the founder. They have ran and stolen huge amount of money from people in different countries; Russia, South Africa, China, Zimbabwe etc
Even a layman who knows nothing about business will ask you before I put my money into this; have you heard about the business? What are the reputation, history and past records of such business? The history line has let known that MMM is a scam in which we should not invest our resources unto it.
What is the significant effect of MMM on the Economy?
Without a doubt, Nigeria’s economy is not favorable at this moment but the fact still remains that MMM as a scheme will just worsen the situation. The scheme itself has no other target than the worse or weak economy. The devil brains behind the scheme target countries that are facing hard times and having the poor economy. They know with the poor economy, the citizens of such countries will find it too difficult to have a high standard of living. When MMM scheme was introduced in China, South Africa, Zimbabwe and others the economy of such countries was at their poor moment. They used the moment to exploit the weaker people because you hardly find rich men involving in this ugly scheme.
Let me cite an example so that you can understand, assuming a man in this country ours, regarding the condition on ground and someone comes to him and tell him I know you are suffering but with just a small amount do you know you get 50% or 40% of your money in a short period without stress or work. Just sit down and your money keeps growing and truly the man got the 50%. Do you think the man can’t do anything to crave to get huge amount to any length to put money into such scheme? Then, MMM is one of these types.
Furthermore, the feasibility study discussed above is enough to let you know that MMM is nothing just a scam. I tell you, some people will still not be convinced with the questions of the study then, there are many other facts that tell you that has nothing good for good then take your money and go.
I have had arguments with many people so called guru or top beneficial of this scheme whom are now organizing tutorials to get new members on board. They just feel and see you a bad market tool for spreading false of the gospel of MMM. I have also read discussions on social media about this hottest MMM scheme in Nigeria. The better side of the argument is that the scheme pays, enriching their pockets and making it from the scheme when they are finding it hard to even sustain at the present economy of the country. The focus of attention is just on the benefits and the profit (30% commission) diverts and blind folded them to see the sinking future of this Ponzi scheme.
Are you asking what a Ponzi scheme is?
A Ponzi scheme is a form of fraud in which the belief in success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. This is how this MMM works!
MMM may be new to Nigeria because it just came into existence in 2016, but the whole world knows all the hidden part of this Ponzi scheme because it has been founded since 1994. On July 22nd, 1994, MMM offices in Russia were closed by the Russian police for tax evasion.
The attempt to continue the scheme by the company after closure few days later was in futile and finally ceased operations. At that point of closure, the MMM company was owing between 100 billion and 3 trillion rubles to the investors (from $50 million to $1.5billion). This collapse led to 50 investors committing suicide having lost all of their money in the scheme.
At this point of typing this article, I still have some discussions with the so called Masters in the scheme who organized a tutorial who came to invite me for the scheme. We had a hot discussion which he eventually dodged many questions and said come to the tutorials ground with your questions, every doubt or contemplation will be explained. Many Nigerians have been attracted and deceived with the 30% commission on your money contributed to help another person. Though, no doubt that many Nigerians have received the said commission and have reaped from the scheme. Despite the reaping, I will give some reasons to cut the article short why MMM is not worthy to jump into to invest your money.
The reasons that show you MMM is a scam and will soon crash are as follow;
The misconception about this scheme is that, many Nigerians think it is either an investment or business they can put their money and many earnings from it. It is clearly stated on the website that, it is neither business nor investment so the agent of devil coming to you has been lying to you that it is an investment to put your money and earn.

The brains behind this scheme are so smart telling you my people, make sure you use your spare to deal with them. Use money you think is not that significant to your daily living. Money that if you lose it in the course of this scheme that might not pain you. Is N10,000 or N30,000 many Nigerians put into this scheme a spare money? This is a question begging for answer. At this time of recession, is there any Nigeria can afford taking two meals per day let alone saying having N30,000 or above as spare money.
The promise of high rate of returns on your deposits is something suspicious. Even a standard company with reputation will never give you such a high rate of returns on your share with them let alone a new birthed community called MMM promises such high rate of returns. The bizarre thing is that, educated fellow are plugging in their money into something that is not an investment with promises of a 30% commission per month not even yearly. Have you any investment given such rate per month? Then, please let me know. Don’t tell me MMM or Pennybrain etc
Had it been the scheme has been engaging in activities to make profits and give back 30% returns to their subscribers as gain made, then, I wouldn’t have any issue with them but as said by them on their website, it is not an online business it is just a community where of people providing each other financial help.
The main bone of contention is that, where is the money coming from? To my surprise, the guy I had a discussion with told me is from the other people who put in their money. I hope you understand. The money of new intakes is being used as commission if new intakes fail to come then, the collapse is certain.
The platform said, you willingly provide help to other people with your spare or unused money. After which your account will be credited or rewarded for helping someone else. I think, this is a help then I think the MMM founder should borne the commission but the participants are still the one at the receiving end for this. For example; Let assume Mr A puts in N10,000, he would be expecting 30% of the N10,000 at the end of the month which means (0.3 x 10, 000 + 10,000) = N13,000. Now, Mr B Invests N10,000 now Mr A will be paid N13,000 which means N3,000 has been deducted from the N10,000 donated by Mr B. After this transaction, only N7,000 remains in the circulation and Mr B will also be expecting his N13,000 at the end of the month. Unless new intakes (Mr C) come that Mr B can be paid, if not then Mr B will be in position as told by the MMM agent called Pause, that is, until new people bring money in that you will get pay.
I don’t think those who put in their money into this usually visit the website or read the manuals because it is clearly stated that, this rate of 30% commission should be considered as your earning at all. Is this just looking new to you? I think you have been deceived my brothers and sisters. The reason why this 30% is not seen as yield or interest rate is that, your funds were given away for free. Did you just see that, you have just given away free money?
As the founder and the spreaders of gospel say, they do say MMM is a just mutual aid platform where ordinary people help each other. MMM says, they have no interest in this but just aiding the process of people helping each other. MMM just regulates the process and nothing more, then, what is the profit of the organization for establishing such programme? A Russian coming down here to Nigeria saying he is creating a platform where Nigerians will be helping themselves each other by exchanging their funds and gain nothing from it. Please help me ask Mr Mavrodi if is the economy is the best in the world? While targeting African Countries not Europeans or South Americans? You are telling me it is a mutual aid platform.
Reading this statement alone makes it glaring that this scheme is just a deception. A programme that tells you, your money or interest is not guaranteed then why many people are still adamant to waste their hard earned income on it. Do you think I formulated or fabricated the statement? I urge you to get MMM manuals or visit their website to confirm it.
A big question is that, the founder, devil brains behind the scheme is not earning or making profits from the scheme. As said earlier, why bringing something into existence when there is no interest attached to it. Tell me, MMM was founded not for profit? Is it a charity programme? Even a charity programme will seek fund from the wealthy personalities to fund their programme. If not for a reason, why coming down to Africa; South Africa, Zimbabwe and Nigeria. I will urge the founder of this programme to visit the likes of England, France, USA, Canada, Germany, etc with this scheme and let see what happen. Why Africa, a big question! If it is true that they are gaining nothing then the people putting in their money are losing nig time.
Finally, the falling down and crashing of this scheme is at sight. You ask me how? There are two pivotal things to the end of this scheme soon;
The technical instrument in engineering this scheme is the coming of new intakes. If new people are not joining the scheme then the title of a movie comes in MMM has fallen down. It is clearly stated on their website that, all members should be honest and kind to others.
The brain behind MMM has put in places strategies to work against this but will surely not work because if lies travel for thousands years the truth will surely come one day. They will even ask their subscribers to make videos and upload it on YouTube to deceive many people. It is even crystal clear now that, the scheme is going down already, many people have been complaining of delay in payment. If these people fail to put in their fund then, the downfall is coming already. They have turned it into door-to-door campaign for the scheme because the inflow is no more sufficient.
From the hit discussion I have with one of them, he said, the only way the scheme can fall is that if everybody withdraws their money. He even used bank as a case study that, let assume customers in a bank go and withdraw their money. Will such bank not collapse? I laugh and I told him MMM is different from bank. It is not even a bank. A bank will never tell me my money is not guaranteed then I will put my fund there. A bank is a business entity will make profits from lending money out to investors to cover up for any withdrawal. I shut him up.
It is better to heed to advice, my brothers and sisters. Some people are not ready to listen to anything. I pray the downfall doesn’t cause another calamity in this country and no to suicide as the case in Russia. The scheme has already said that they should not be held responsible for anything.
Nigerians are smart, after several warnings from necessary quarters if the other side of this scheme happens, then, we all know whom to blame. Many people will then take the social media to blame the government, politicians, and others.
I believe my mail will not be bombarded with messages for publishing this article. What I will just say is that, save a life. Share it with others, educate and liberate people around you.

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.


Are you still asking a question that when will MMM scheme come to an end? It is just a matter of time. One is certain my people, the longer the time bomb ticks, the larger will be the bang and damage when it explodes.
An African proverb says a fly that refuses advice of it to stop perching on a corpse follows it into the grave.
To know more, you can simply Google MMM or go to this link;

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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