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'''МММ''' was a Russian company that perpetrated one of the world's largest [[Ponzi scheme]]s of all time, in the 1990s.<ref>[http://www.cdi.org/russia/johnson/7056.cfm##13 Transitions Online] {{webarchive|url=https://web.archive.org/web/20070412084550/http://www.cdi.org/russia/johnson/7056.cfm |date=2007-04-12 }} accessed April 12, 2007</ref><ref name="RFE/RL">{{Cite web |first=Claire |last=Bigg |title=Jailed For Not Paying A Fine, Ponzi Scheme Founder Plots 'Financial Apocalypse' |date=March 15, 2012 |work=[[RFE/RL]] |url=http://www.rferl.org/content/mmm_mavrodi_plots_financial_apocalypse/24517183.html |url-status=live |archive-url=https://web.archive.org/web/20120316044530/http://www.rferl.org/content/mmm_mavrodi_plots_financial_apocalypse/24517183.html |archive-date=March 16, 2012 }}</ref> By different estimates from 5 to 10 million people lost their savings.<ref>{{cite news|title=MMM's Mavrodi Voted Into Duma|url=http://old.themoscowtimes.com/sitemap/free/1994/11/article/mmms-mavrodi-voted-into-duma/346594.html|access-date=3 December 2017|work=The Moscow Times|date=November 1, 1994|quote=MMM collapsed in July, swallowing the savings of an estimated 5 million to 10 million investors|archive-date=3 December 2017|archive-url=https://web.archive.org/web/20171203181559/http://old.themoscowtimes.com/sitemap/free/1994/11/article/mmms-mavrodi-voted-into-duma/346594.html|url-status=live}}</ref> According to contemporary Western press reports, most investors were aware of the [[fraudulent]] nature of the scheme, but still hoped to profit from it by withdrawing money before it collapsed.<ref name="csburn"/><ref>{{cite news|title=Russian Investors Entered Stock Scheme With Eyes Wide Open|url=
In 2011, MMM re-opened as "[[MMM Global]]".
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Initially, Mavrodi operated a network of computer-importing cooperatives.<ref name="rutrouble"/> In January 1992, tax police accused MMM of [[tax evasion]], leading to the collapse of MMM's internal bank, and causing the company to have difficulty obtaining financing to support its operations.<ref>{{cite news|title=MMM's Sergei Mavrodi: Behind the Hype|url=http://old.themoscowtimes.com/news/article/tmt/349662.html|access-date=3 December 2017|work=The Moscow Times|date=August 6, 1994|url-status=live|archive-url=https://web.archive.org/web/20171203162752/http://old.themoscowtimes.com/news/article/tmt/349662.html|archive-date=3 December 2017}}</ref> Faced with difficulties in funding its foreign trade, the company switched to the financial sector. It offered [[United States|American]] stocks to Russian investors, but met with little success. In December 1992, MMM-Invest was created as a voucher investment fund, a type of entity created to collect [[Voucher privatization|privatization vouchers]].<ref name="sec-invest"/> It was renamed Russ-Invest in May 1995, to distance it from the MMM scheme.<ref name="sec-invest">{{cite web|title=File No. 3-9006|url=https://www.sec.gov/litigation/admin/337294.txt|publisher=Securities and Exchange Commission|access-date=3 December 2017|archive-date=31 May 2017|archive-url=https://web.archive.org/web/20170531194251/https://www.sec.gov/litigation/admin/337294.txt|url-status=live}}</ref>
The MMM Ponzi scheme was launched in February 1994,<ref name="makielmei">{{cite book|last1=Malkiel|first1=Burton G.|last2=Mei|first2=J. P.|title=Global Bargain Hunting: The Investor's Guide to Profits in Emerging Markets|date=1999|publisher=Simon and Schuster|isbn=9780684848082|pages=[https://archive.org/details/globalbargainhun00burt/page/84 84]–87|url=https://archive.org/details/globalbargainhun00burt|url-access=registration|language=en}}</ref> promising annual returns of up to {{val|3000}}%.<ref>{{cite news|title=Defendant In Fraud Case Wins Election|url=
At its peak the company was taking in millions of US dollars each day from the sale of its shares to the public.<ref name="rfejailed">{{cite news|title=Jailed For Not Paying A Fine, Ponzi Scheme Founder Plots 'Financial Apocalypse'|url=https://www.rferl.org/a/mmm_mavrodi_plots_financial_apocalypse/24517183.html|access-date=3 December 2017|work=RadioFreeEurope/RadioLiberty|date=March 15, 2012|url-status=live|archive-url=https://web.archive.org/web/20171115185438/https://www.rferl.org/a/mmm_mavrodi_plots_financial_apocalypse/24517183.html|archive-date=15 November 2017}}</ref> Mavrodi reportedly owned enough cash to pack several rooms full with banknotes.<ref name="rfejailed"/> The success of MMM in attracting investors led to the creation of other similar companies, including Tibet, Chara, Khoper-Invest, Selenga, Telemarket and Germes. All of these companies were characterised by aggressive television advertising and extremely high promised rates of return. One company promised annual returns of {{val|30,000}}%.<ref>{{Cite web|last=|first=|date=|title=MMM Global Review: Sergey Mavrodi's MLM BTC Ponzi cult|url=https://behindmlm.com/mlm-reviews/mmm-global-review-sergey-mavrodis-mlm-btc-ponzi-cult/|url-status=live|archive-url=https://web.archive.org/web/20201129043725/https://behindmlm.com/mlm-reviews/mmm-global-review-sergey-mavrodis-mlm-btc-ponzi-cult/|archive-date=2020-11-29|access-date=2021-01-25|website=behindmlm.com}}</ref>
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Several organisations of "investors" made efforts to recover their lost investments, but Sergei Mavrodi manipulated their indignation and directed it at the government. Mavrodi was arrested on tax evasion charges, unrelated to the MMM scheme, on 4 August 1994.<ref name="mtmc"/> Most shareholders blamed the government for their losses.<ref name="upirefe">{{cite news|title=Russian pyramid victims hit government|url=https://www.upi.com/Archives/1994/08/28/Russian-pyramid-victims-hit-government/7879778046400/|access-date=3 December 2017|work=UPI|date=August 28, 1994|language=en|archive-date=3 December 2017|archive-url=https://web.archive.org/web/20171203181557/https://www.upi.com/Archives/1994/08/28/Russian-pyramid-victims-hit-government/7879778046400/|url-status=live}}</ref> A 'Union of Defense of the Rights of MMM Shareholders' emerged, attempting to collect the 1 million signatures required to hold a no-confidence referendum against Yeltsin's government.<ref name="upirefe"/>
<ref>{{cite news |last1=John |first1=Sarkan |title=Eric dalius |url=https://businesstrenders.com/eric-j-dalius-is-the-man-behind-saivian-ponzi-cold-out/ |access-date=19 June 2021}}</ref>
In October 1994 Mavrodi managed to win a by-election to replace [[Andrey Aizderdzis]] in the [[State Duma]], and with it immunity from prosecution.<ref>{{cite news|last1=Erlanger|first1=Steven|title=Russian Tied to Stock Scheme Gains Election to Parliament|url=https://www.nytimes.com/1994/11/01/world/russian-tied-to-stock-scheme-gains-election-to-parliament.html|access-date=3 December 2017|work=The New York Times|date=1 November 1994|url-status=live|archive-url=https://web.archive.org/web/20150526100415/http://www.nytimes.com/1994/11/01/world/russian-tied-to-stock-scheme-gains-election-to-parliament.html|archive-date=26 May 2015}}</ref> Mavrodi claimed to be the victim of jealous bureaucrats, and that MMM shares would regain their value if he was elected.<ref>{{cite news|last1=Hiatt|first1=Fred|title=ALLEGED TAX DEFRAUDER WINS ELECTION TO RUSSIAN PARLIAMENT|url=https://www.washingtonpost.com/archive/politics/1994/11/01/alleged-tax-defrauder-wins-election-to-russian-parliament/7e89826e-376b-4be1-88a3-07ea5de923ea/|access-date=3 December 2017|newspaper=Washington Post|date=1 November 1994|url-status=live|archive-url=https://web.archive.org/web/20171203162752/https://www.washingtonpost.com/archive/politics/1994/11/01/alleged-tax-defrauder-wins-election-to-russian-parliament/7e89826e-376b-4be1-88a3-07ea5de923ea/|archive-date=3 December 2017}}</ref> During the campaign he was supported by [[Vladimir Zhirinovsky]], who hoped that Mavrodi would provide him with future financial backing.<ref>{{cite news|last1=Boudreaux|first1=Richard|title=Russian Wins Parliament Seat and Immunity: Election: Sergei Mavrodi bilked thousands with his MMM pyramid scheme. But voters took him at his word again.|url=https://www.latimes.com/archives/la-xpm-1994-11-01-mn-57273-story.html|access-date=3 December 2017|work=Los Angeles Times|date=1 November 1994|archive-date=3 December 2017|archive-url=https://web.archive.org/web/20171203164847/http://articles.latimes.com/1994-11-01/news/mn-57273_1_mmm-pyramid-scheme|url-status=live}}</ref> After being elected he appeared in the State Duma only once, to vote against an attempt to strip him of parliamentary immunity.<ref name="upibar"/>
The original investigation was closed in 1997 for lack of evidence.<ref name="ptdmt"/> The Prosecutor General's Office reopened the case in 1998, when Mavrodi was investigated for fraud and placed on an international wanted list.<ref name="ptdmt">{{cite news|title=Police Track Down MMM Fugitive|url=http://old.themoscowtimes.com/sitemap/free/2003/2/article/police-track-down-mmm-fugitive/240674.html|access-date=3 December 2017|work=The Moscow Times|date=February 3, 2003|url-status=live|archive-url=https://web.archive.org/web/20171203162752/http://old.themoscowtimes.com/sitemap/free/2003/2/article/police-track-down-mmm-fugitive/240674.html|archive-date=3 December 2017}}</ref> While it was believed that Sergei Mavrodi fled to Greece, he was ultimately arrested in Moscow, and investigators concluded that he probably never left the city.<ref name="ptdmt"/>
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{{Main|MMM Global}}
From 2011, Mavrodi started targeting developing countries in Asia and Africa, promising 30% monthly returns and other promotional offers. It claimed that this was not a [[high-yield investment program]] (HYIP). Rather it was mentioned on the website that a
==See also==
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* [[Pyramid schemes in Albania]]
* ''[[The PyraMMMid]]''
* [[Stock Generation]], yet another financial scheme by Mavrodi, calling itself a "stock market game"
* [[European Kings Club]]
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