MMM Global Zimbabwe
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Trading name | MMM Global |
|---|---|
Formerly called | MMM Global |
| Industry | Financial Services |
| Parent | MMM Global |
| Website | mmmglobalzimbabwe |
MMM Global Zimbabwe, a representation of the MMM Global, is a financial services system that has been described as a Ponzi Scheme. MMM promises a return of 1% per day or 30% per month interest.
It is not clear when it started in Zimbabwe but it became popular in 2016 prompting the Reserve Bank of Zimbabwe to issue a warning to Zimbabweans against joining it.
MMM describes itself as a "global community is a mutual aid fund and a social financial network, a community of people who want to be free."
How it works
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Warning Against Joining by Reserve Bank of Zimbabwe
In August 2016, the Reserve Bank of Zimbabwe issued a public statement yesterday, 25 August, warning the public against participating and investing in Ponzi and Pyramid schemes. The RBZ specifically identified MMM Global Zimbabwe as a major culprit of both fraudulent activities, creating a system that allows only the top members to benefit, leaving the rest exposed to the financial risks.
The RBZ also said that MMM Global Zimbabwe is not a registered or regulated entity in Zimbabwe.[1]
History of MMM Global
МММ is a Russian company that perpetrated one of the world's largest Ponzi schemes of all time in the 1990s. By different estimates from 5 to 40 million people lost up to $10 billion. The exact figures are not known even to the founders.
It was founded by Sergei Mavrodi, Vyacheslav Mavrodi (Sergei's brother) and Olga Melnikova. The name MMM is derived from the initials of their surnames.
This initial Russian MMM was shut down by the government for tax evasion and Sergei Mavrodi, the head, avoided arrested by becoming a public official and at one time even contesting to become president. Mavrodi later fled Russia for the US where he started another Ponzi scheme called Stock Generation Ltd after 1997. The company collapsed and people lost their investments estimated at around 5.5. million.
Eventually Mavrodi was found and arrested and jailed in 2003. he was released after serving his jail term in May 2007. He immediately started another Ponzi Scheme called MMM-2011 which he openly described as a pyramid
"It is a naked scheme, nothing more ... People interact with each other and give each other money. For no reason!"
MMM was later launched in India, China, South Africa, Kenya, Nigeria and Zimbabwe. The new MMM promises returns of 30% interest a month.
References
- ↑ Batsirai Chikadaya, RBZ issues stern warning against participating in Ponzi/Pyramid schemes, points finger at MMM Global Zimbabwe for misleading the public!, Techzim, Published:26 August 2016 , Retrieved: 30 August 2016
