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{{Short description|1990s Russian Ponzi scheme company}}
{{More citations needed|date=January 2012}}
{{Infobox company
| name = Joint stock company "MMM"
| native_name = Акционерное общество «МММ»
| logo = MMM logo.
| type =
| fate = Shut down by Russian police in 1994, declared bankruptcy in 1997, reopened in 2011 as [[MMM Global]]
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| subsid =
}}
'''МММ''' was a
In 2011, MMM re-opened as "[[MMM Global]]".
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MMM was established in 1989 by [[Sergei Mavrodi]],<ref name="RFE/RL" /> his brother Vyacheslav Mavrodi, and Olga Melnikova. The name of the company was taken from the first letters of the three founders' surnames.
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
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
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|
Regular publication in the media of the rising MMM share price led President [[Boris Yeltsin]] to issue a decree in June 1994 to protect investors from false advertising.<ref name="csfirmoffers">{{cite news|title=Firm Offers Public Huge Returns, But Government Calls it Illegal|url=https://www.csmonitor.com/1994/0728/28091.html|
On 22 July
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/|
<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|
Mavrodi launched his own political party, the Party of People's Capital, but it was barred from registering after violating election laws.<ref name="upibar">{{cite news|title=Russian party barred from elections|url=https://www.upi.com/Archives/1995/09/28/Russian-party-barred-from-elections/8155812260800/|
▲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|accessdate=3 December 2017|work=The New York Times|date=1 November 1994|url-status=live|archiveurl=https://web.archive.org/web/20150526100415/http://www.nytimes.com/1994/11/01/world/russian-tied-to-stock-scheme-gains-election-to-parliament.html|archivedate=26 May 2015|df=}}</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/|accessdate=3 December 2017|work=Washington Post|date=1 November 1994|url-status=live|archiveurl=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/|archivedate=3 December 2017|df=}}</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://articles.latimes.com/1994-11-01/news/mn-57273_1_mmm-pyramid-scheme|accessdate=3 December 2017|work=Los Angeles Times|date=1 November 1994}}</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"/>
▲Mavrodi launched his own political party, the Party of People's Capital, but it was barred from registering after violating election laws.<ref name="upibar">{{cite news|title=Russian party barred from elections|url=https://www.upi.com/Archives/1995/09/28/Russian-party-barred-from-elections/8155812260800/|accessdate=3 December 2017|work=UPI|date=September 28, 1995|language=en|url-status=live|archiveurl=https://web.archive.org/web/20171203164847/https://www.upi.com/Archives/1995/09/28/Russian-party-barred-from-elections/8155812260800/|archivedate=3 December 2017|df=}}</ref> He decided to stage a protest against a decision, but this time only 200 people showed up.<ref>{{cite book|last1=Barker|first1=Adele Marie|title=Consuming Russia: Popular Culture, Sex, and Society Since Gorbachev|date=1999|publisher=Duke University Press|isbn=0822323133|page=[https://archive.org/details/consumingrussia00adel/page/64 64]|url=https://archive.org/details/consumingrussia00adel|url-access=registration|language=en|df=}}</ref> In October 1995, the Duma cancelled Mavrodi's right to immunity as a deputy.<ref>{{cite news|last1=WILLIAMS|first1=CAROL J.|title=Criminality Taints Dozens of Russian Office-Seekers|url=https://articles.latimes.com/1995-10-26/news/mn-61255_1_moscow-office|accessdate=3 December 2017|work=Los Angeles Times|date=26 October 1995|url-status=live|archiveurl=https://web.archive.org/web/20171203162752/http://articles.latimes.com/1995-10-26/news/mn-61255_1_moscow-office|archivedate=3 December 2017|df=}}</ref> In 1996, he tried to run for Russia's presidency, but his bid was rejected after officials ruled that most of the signatures he submitted had been forged.<ref>{{cite news|title=Mavrodi's MMM Born Again|url=http://old.themoscowtimes.com/sitemap/free/1997/1/article/mavrodis-mmm-born-again/313621.html|accessdate=3 December 2017|work=The Moscow Times|date=January 14, 1997|url-status=live|archiveurl=https://web.archive.org/web/20171203162752/http://old.themoscowtimes.com/sitemap/free/1997/1/article/mavrodis-mmm-born-again/313621.html|archivedate=3 December 2017|df=}}</ref> MMM declared bankruptcy on September 22, 1997.{{Citation needed|date=May 2012}}
Though no longer current, MMM ''Bilets'' [[share certificate]]s, which bear a resemblance to banknotes and formerly issued in ‘denominations’ of varying amounts, have gained some interest as collectors items.
The MMM scandal led to increased regulation of the Russian stock market, but the legacy of the fraud led many to become extremely suspicious of any [[joint stock company|joint stock companies]].{{citation needed|date=December 2019}}
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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
==See also==
* [[Caritas (Ponzi scheme)
* [[Lyonya Golubkov]]
* [[Pyramid schemes in Albania]]
* ''[[The PyraMMMid]]''
* [[Stock Generation]], yet another financial scheme by Mavrodi, calling itself a "stock market game"
* [[European Kings Club]]
==References==
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== External links ==
*{{in lang|ru}} [https://web.archive.org/web/20071117125103/http://www.advertka.ru/media/video/12710/ 1992 MMM TV Commercials]
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