MMM (Ponzi scheme company): Difference between revisions

 

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"/>

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://articles.latimes.com/1994-11-01/news/mn-57273_1_mmm-pyramid-scheme|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"/>