Sergei Mavrodi, a Russian businessman and founder of the MMM Pyramid scheme, a Ponzi scheme that deprived millions of Russians of their savings in the 1990s, has died of a heart attack.
According to reports from a Russian media, Radio Free Europe/Radio Liberty, on Monday, the 62-year-old was rushed to the hospital late on March 25 with pain in his chest and died several hours later.
The report read, “The emergency team has failed to save his life. He died this morning.”
Mavrodi’s MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors. Mavrodi promised returns of 20 percent to 75 percent a month, as well as lotteries and bonuses for investors.
One of Russia’s most famous crooks, Sergei #Mavrodi, died of a heart attack on Sunday. The article below was originally published on Aug. 6, 1994. It was written by @steveliesman pic.twitter.com/KTu0ne3iZz
— The Moscow Times (@MoscowTimes) March 26, 2018
As soon as the number of new clients stopped growing, the pyramid collapsed, causing huge financial losses for at least 10 million people, in some cases leaving them destitute.
In 1994, Mavrodi was elected as a lawmaker, a decision he later said was to ensure he received immunity from prosecution. In 1996, he lost his parliamentary mandate.
In 2007, a Moscow court found him guilty of financial fraud and sentenced him to 4 1/2 years in a penal colony.
In 2011, Mavrodi launched another pyramid scheme called MMM-2011, calling on investors to purchase so-called Mavro currency units in a bid to get rid of the “unfair” financial system. Some 15 months later, Mavrodi halted the project.
From 2011-16, Mavrodi launched Ponzi schemes under the MMM brand in India, China, South Africa, Zimbabwe, and Nigeria.
In many of those countries, Mavrodi’s operations were subsequently shut down or suspended.
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