Russian businessman Sergei Mavrodi, whose MMM pyramid scheme deprived millions of Russians of their savings in the 1990s , has died of a heart attack , according to Russia media.
Reports said the 62- year -old was rushed to the hospital late on March 25 with pain in his chest and died several hours later .
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.
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 .
Reports said the 62- year -old was rushed to the hospital late on March 25 with pain in his chest and died several hours later .
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.
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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