The name MMM has been in the Nigeria news space of recent, with sour headlines to its members/investors. The Nigeria Security And Exchange Commission recently issued a stern warning to Nigerians about the activities of this scheme which promised unusually high returns to its members/investors. It described the facilitators as “fraudsters, who carry out their illegitimate business via the website nigeria.mmm.net.
This happened months after the South African authorities froze accounts suspected to be linked to the scheme, per Africa News Network. As with many things,m it surprisingly continues operations in Nigeria. Though its members in South Africa are defiant, insisting it was no fraud, but their authorities have kept the scheme down.
So we bring to you here what you need to know about MMM to enable you make informed judgments.
For starters, MMM was started by convicted Russian fraudster Sergey Mavrodi who was found guilty of running one of Russia’s biggest pyramid schemes in the 1990s, in which millions of people lost their life savings. Its acronym was drawn from the names of 3 brothers – Mavrodi and his brothers Vyacheslav Mavrodi, and Olga Melnikova.
What is a Ponzi Scheme?
A Ponzi Scheme is a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investor from money invested by the later investor.
It’s a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to its investors by new investors. Rather than from profit earned through legitimate sources.
Most operators of the scheme entice new investors by offering very high profit compared to other investments.
Due to this chain of service where old investors are serviced by new investors, there MUST be continuous flow of newbies. Eventually, when there isn’t enough money to go around, there is an abrupt shut down.
MMM claims “its not a bank, MMM doesn’t collect your money. MMM is a community where people help each other. MMM gives you a technical platform which helps millions of participants worldwide to connect those who need help with those who are ready to provide help for FREE”
Is MMM non-existent?
Does it have quick returns?
Is a new investor’s money used to pay the old investor?
Is there a continuous chain of bringing in NEWBIES?
Where does the 30 per cent returns on interest come from?
What legitimate business or trade are the backers engaged in?
Well, there you have it. You make your own decisions.