Ponzi Record

Russia ยท To July 1994 (main collapse, according to the Christian Science Monitor)

MMM (Russia, 1990s)

RFE/RL reported that MMM collapsed once new clients stopped joining. The Christian Science Monitor reported in July 1994 that the Finance Ministry listed MMM among firms it said had issued unregistered securities, and that the tax police said MMM owed more than $24 million in taxes and fines.2,1

Losses as statedNo official loss figure was found in the sources reviewed.
Victims as statedRFE/RL reported huge losses for at least 10 million people. AFP estimated 10 to 15 million people put money in.
Recovered for investorsNo official recovery process was found in the sources reviewed.

People and outcomes

Sergei Mavrodi

Found guilty of fraud by a Moscow court in 2007 and sentenced to four and a half years in a penal colony, most of it already served in pre trial detention after his 2003 arrest. Died in March 2018 aged 62.2,3

Response: In July 1994 Mavrodi denied wrongdoing in a full page newspaper advertisement and blamed the Finance Ministry and tax authorities, the Christian Science Monitor reported.1

Timeline

  1. Finance Ministry lists MMM among firms issuing unregistered securities. Investors rush MMM offices and the firm stops operating.1
  2. Moscow court convicts Mavrodi of fraud and sentences him to four and a half years.2,3
  3. Death of Mavrodi reported.2,3

Sources

  1. Christian Science Monitor, Russian government moves against MMM investment fund (28 July 1994)
  2. Radio Free Europe/Radio Liberty, Founder of Russia's MMM pyramid scheme dead (26 March 2018)
  3. AFP via The Citizen, Author of Russia's MMM pyramid scheme who swindled millions dies (AFP) (26 March 2018)