Good thing you’ve sought to found out more information about this scheme going on round the world. Probably you, just like me, have been introduced into this as the next big thing out the current economic quagmire, or probably you are about signing unto the scheme but decided to sought more information about MMM before clicking the submission button, great decision because in this review, I am going to pour out all I know about the activities of mmm Global, MMM global South Africa, MMM South Africa or whatever name they go by.
Don’t join this Ponzi scheme MMM South Africa, MMM Global, MMM until you read this report, it is revealing.
Company’s name: MMM
Owners: Sergey Mavrodi or the Mavrodi brothers From Russia.
Overall Rating: 35/100.
Verdict: Ponzi scheme.
MMM simply stands for Mavrodi Modial Movement. Research had it that, mmm derived its name from the Initials of the 3 Russian brothers namely sergey mavrodi, Vyacheslav Mavrodi and Olga Melnikova, back then when they first started out in 1989.
A little background check on the founders of mmm review some astonishing facts; Sergei Mavrodi is a well-known con artist in Russia and the United States, he made all of his wealth conning and scheming people.
Here is the summary of what Wikipedia says about mmm:
‘’MMM was a Russian company that perpetrated 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’’.
Early 2016, MMM created a website that is targeted at Nigeria and a lot of people are already involved in especially the youth, and the figure of participants is already up to 1 million despite consistent warning from the Country`s securities and Exchange Commission and the Apex Bank-The Central Bank.
Is MMM South Africa MMM global a Ponzi Scheme?
In order to clearly establish whether or not mmm is a Ponzi scheme, let`s first look up what a Ponzi scheme is, this will help us remain unbiased when we finally take a stand on mmm global, mmm south African.
What Is a Ponzi Scheme About?
Ponzi scheme first came into been when an Italian, Charles Ponzi first established a scheme that promised investors 100% return in 90 days. The idea was to collect capital from new investors and pay old investors. On August 10, 1920, Charles Ponzi was declared bankrupt and the whole scheme crashed, many lost their money.
Here is how a Ponzi scheme is described:
”A Ponzi scheme is a fraudulent investment operation where the operators, an individual or organization pays return to its investors from new capital paid to the operators by new investors, rather than from profit earn through legitimate sources”.
In summary, any business operation that requires old investors to be paid from new capital brought by new investors as against profit earn through its business operations is a Ponzi scheme.
In view of the above explanation, let’s look at exactly how mmm operates.
MMM Global, MMM South Africa
Below is the first statement on the company’s website:
‘’This is a community of ordinary people selflessly helping each other, a kind of the Global Fund of mutual aid…
Again, the company went on to state clearly that, they don’t have a central account from where all the money flows to (and so there is no claim of the money been stolen by the operators). All the money is on the participants bank accounts and they willingly transfer directly to other participants without intermediaries. MMM only plays the role of regulating, smart, is it? Well, I am going to come back to this, but first let`s see how it works.
How It Works
The first thing you do is to be registered from there you create your Personal Office (PO). Upon gaining access to your PO, you are going to see two buttons, HP and GH. PH means Provide Help and GH means get Help-The whole essence of the business revolves around Providing Help and Getting Help.
Now, if you want to provide help, you are expected to indicate so by clicking on the PH button and state clearly how much you are willing to provide help with and once that is don and confirmed, you will receive what they called, MAVROS in your PO. These MAVROS will grow by 30% per month. You can sell off these MAVROS (MAVRO is by the way, the central currency used on the system) once you have transferred the money to the recipients account details provided to you by the system and confirmed by the recipient that the money has been received.
To do that, you have to click on the GH button (by this time, the GH button should have turn green, indicating that you can request for help now, or sell off you MAVROS), also, specify the amount you want to get help with-the rate of growth of your money is at 30% presently and is calculated by the system, thus the system can actually tell you how much you can get help with.
There are some others ways of earning money in MMM apart from getting and providing help.
- You earn money each time you invite someone into the program and the person participate by providing help. It is called referral bonus and at present, it stands at 10%.
- There is another way of earning money in the system, this is called Guiders bonus. That means if you are a guilder you can actually build your mlm structure in the system and earn money from everyone within your Team. This stands at 5% from your direct referrals, 3% from the referrals of your direct referrals, 1% from the 3rd generation, 0.5% from the 4th and so on.
- Another bonus is also given out when you make a video testimonial (story of providing and getting help). Usually, after receiving help, you are expected to write a letter of happiness. Now, if a video is attached to the letter of happiness, you will be given a bonus depending on the quality of the video. 10% from the amount of help received if the video is a super high quality with you as the main character, your face visible and the duration not less than 1:30 sec. 5% if the video is adjudged to be of less quality and 1% if your face is not visible.
- Another bonus is given when you provide help in Bitcoin currency instead of bank transfer, here you receive 3% of the amount you provide help with.
That’s the summary of how the scheme works.
Is MMM a Ponzi Scheme
From the analysis above and from the knowledge we have of what makes a scheme Ponzi, it is very clearly by all standard that MMM Global, MMM South African and all its Affiliates from different countries operates a Ponzi scheme. A Ponzi scheme is actually considered a serious financial crime in most States in the US.
Here Is The Catch
The operators of MMM are actually leveraging on the gullibility of most people especially those from third world countries (I mean no offence) to cause a lot of financial crime against the people.
Here are some basics questions that need to be answered.
- Where are they getting the increased percentage they are paying just within 30 days of investment?
- What about the referral bonus and other added bonuses.
- Again, why are they so eager to get many people into the scheme to the extent of paying bonuses when you do a video testimonial (they know a lot more gullible people will join in the scheme after viewing those videos).
MMM says that there is no central account from where all the money flows to and so the money cannot be stolen, excuse me?
What are they taking people for? These people are the Admins of the website, they have unhindered access to all the POs of participants. They actually will tell you when to request for help-Everything is still been done manually, there is nothing automatic about it. Because of the unhindered access they have as admins, a lot of things can easily be manipulated.
And again, do you really know who receive your money when you provide help? a lot of their own people request for help only and never give help, of course they never will.
It is clear from all angles that MMM, a fraudulent Ponzi scheme by Mavrodi Sergey and his Lieutenants is a scam and sooner or later, it will come crashing in South African and other Countries it is presently operating, just like all other schemes he has put forward before now.
Early 2016, MMM china crashed and a lot of poor folks lost their money.
Its just unfortunate that mavrodi keep rinsing and repeating the same scheme from time to time. Charles Ponzi would have to stand in awe of Mavrodi if he were to be alive; he promised investors 100% in 90 days, but Mavrodi promised 100 % within 30 days when he first launched his MMM in 2011.
Mavrodi Sergei has proven times and again how much a con artist he is . Now, he has set his sight on countries with poor economies no matter how much the guilders he is paying so much to carry out the scheme, mmm remain a Ponzi scheme, a scam and an illegal business/investment.
First, these guys don’t normally have a registered address and are not registered in countries they operates.
They are not regulated by any government agency, their activities are not monitored by anyone.
They are simply robbing Peter to pay Paul and the moment Peter stop bringing in the money, Paul will also stop receiving payment.
The 30 days period between providing and getting help is to enable them source for new investors to pay the old ones. In South African, sometimes you have to wait for 90 days before you can receive help.
The moment the number of people willing to provide help is less than the number of people requesting for help, a conflict will arise and the system will crash.