As kids, we all dreamed of getting rich quick without working hard. We would imagine that someone would give us a million dollars and that will be
Some of us carry this day dreams into adulthood and unfortunately conniving people take advantage of this.
MMM Nigeria, is a Ponzi scheme that originated in Russia that has now set up in Nigeria. Wikipedia describes says the company was involved in one of the biggest Ponzi schemes in the 1990s. It was estimated that thousands of people lost up to $10 billion dollars.
MMM was founded by Sergei Mavrodi, Vyacheslav Mavrodi, and Olga Melnikova in 1989. After a rapid growth, but it all came crashing in 1994 when the police shut down MMM for tax evasion. At this point, the company owed its investors $50m-$1.5bn. From the aftermath 50 of the MMM investors committed suicide.
15 years later, MMM established an office in South Africa. Using the same business model the company claimed investors would get a 30% per month dividend via a “social financial network.” In January 2016, MMM landed in Nigeria.
What’s a Ponzi scheme and why should Nigerians stay away from MMM? A Ponzi scheme, according to Wikipedia, is “a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.“
MMM Global Zimbabwe has already crashed despite Zimbabwe’s National Reserve bank telling its citizen not to sign up to the Ponzi scheme. A few weeks ago MMM in Zimbabwe had stopped withdrawals. In South Africa, MMM crashed in May 2016. The company claimed that it was a media panic and said it was ‘starting over’.
In January 2016, the Chinese government banned MMM because it is a Ponzi scheme.
A business with such a shaky structure has seemingly attracted many Nigerians with individuals putting up to one million Naira into the system despite the Central Bank of Government waring people not to invest in it.
There are people who swear that MMM is legit and not a scam. Judging from the company’s dark history, only time will tell.