Is MMM Global a Ponzi Scheme? Yes, It Is. – Stay Far Away from It!
MMM Global is a company with huge promises. They promise you a big profit with even 5-15 minutes of work per day. Is MMM Global a Ponzi Scheme or can you really make big profits? This is what we have found out.
Name: MMM Global
Founded in: 1989
Founder: Sergei Mavrodi
Field: Ponzi Scheme Company
What Is MMM Global?
MMM Global claims to be a community of people providing financial help to each other and they are fast to defend that they are not a multi-level marketing (MLM) or high-yield investment program (HYIP).
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The original MMM was one of the largest Ponzi schemes of all time, orchestrated by convicted fraudster Sergei Mavrodi who eventually escaped prosecution by being elected to the Russian parliament and hence obtaining immunity. The scheme collapsed in the 1990’s, with estimates ranging from 5-40 million investors losing up to US$ 10 billion. In July 1994, the offices of MMM was closed by the Russian police for tax evasion, as they owed more than $25 million in taxes. Unfortunately, it was reported that at least 50 people who invested in the scheme committed suicide.
However, in 2015, the scheme resurfaced in a few emerging markets across the world (notably South Africa, India, Philippines, Malaysia, Zimbabwe, and Nigeria), promising investor returns of up to 240% per month. They are known for using poetic language about selflessness, helping others and destroying the world’s unjust financial system, with a now popular theme of “Together we can change the world” which probably strike a chord with their target audience and users who fall victim to Ponzi schemes.
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How does MMM Global work?
First let’s take a look at what a Ponzi scheme is, right?
A Ponzi scheme is a fraudulent investment scheme whereby the scheme pays money to exist investors from contributions made by new investors. However, the scheme often collapses when it goes short of new investors since it relies on money from them to pay existing investors. When a delay in payment begins to occur, it usually triggers a panic, where all investors suddenly ask for their investments & promised gains. Until then, they realize that nothing will be paid to them.
So, now that we fully understand what a Ponzi scheme is, let’s take a look at how MMM Global works…
Most participants tries to explain that you simply give some specific amount of money to the community when you join which is popularly referred to as “Provide Help” and that eventually the community will eventually return back the money you deposited, plus a lot more which they refer to as “Get Help”. There is no form of investment or business transaction that occurs, you simply “Give Help” by paying some money to someone you don’t know and wait for a specific number of days to have your money back with even a greater yield.
They also claim that there is no central or middle account, where all the money flows to (hence it cannot be stolen), all the money donated are distributed to all the participants in the community, and that MMM only provides the technical basic program, which helps millions of participants worldwide to find those who need help and those who are ready to provide help for free. This has always been a major force toward the sustenance of the scheme.
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MMM Global Commission Structure
It is very simple to join, and once you join you must ‘Provide Help’ to others by depositing a certain amount starting from $10. When you want to ‘Get Help’ you just withdraw the available funds in your account, which must have been provided by other new investors. At this time, expect that your initial investment must have been doubled in value with accumulated interest. I call this magical cash gifting at its worst.
However, to always keep the first investors happy, the scheme has to find some new investors. From this set of new investors, the scheme tends to pay the first group of investors with their first returns and probably siphon some money for his own personal use.
While the second set of investors will be expecting a payout, the first group will also be expecting more returns. Hence, more new investors will be needed to pay the first two sets. This keeps recycling itself, with a constant stream of new investors always needed to pay existing members.
Eventually, the losers in the scheme are the ones that “Provide Help” at the beginning but are not able to “Get Help” when they request, and the winners of the scheme are those that have gone through the process over and over again.
MMM Global Training and Support
There was nowhere I could find any meaningful training that new investors must undergo prior joining the Marvo scheme. What I was able to find are encouragements and rewards if you share MMM cash gifting scheme with others on YouTube and Facebook and recommending people to join on other social media platforms.
Pros & Cons
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- Free to join, as the community is open to everyone.
- A participant can get up to 240% more from his donation.
- They claim all donations are delivered directly to the participants in the community, so therefore it’s impossible for MMM to Scam you.
- The System of MMM will make it sure that all the donations of the participants are confirmed.
- Its business model which is known as pyramid or cash gifting scheme is known to collapse.
- Delays and continuous changes in Marvo (currency) payment dates.
- People complain of frozen accounts, and in many countries, bank freezes account of participants of the scheme.
- The owner Sergey Mavrodi is well known for running similar scams which defrauded participants.
- Due to its negative reviews, it has become difficult for new people to be recruited.
- As a result of panic, most people are leaving once they withdraw their funds.
- The system is reliable as there are reports of millions in fake deposits.
Conclusion – Is MMM Global a Scam?
I must say am still quite surprised that people are still investing in schemes devised by Sergei Mavrodi, who has been convicted for involvement in Ponzi scheme since the 1990’s. Unfortunately, even the authorities are not able or don’t want to do much about stopping these schemes right now.
People are stuck in this schemes with the hope of making tons of money. Investing in a scheme that offers returns of up to 240% per month is indeed a big risk. Though you might make money from it, but there is a high possibility that you will lose all of it. Even, MMM Global admits that there is no guarantee that you will make money, and there is a possibility that you might lose all of it. But, because there are people who actually make money out of the system, everyone wants a piece of the pie, and this is the reason MMM Global is still alive after all the scandals that happened about two decades ago. I wonder why we forget the past so soon!
My sincere advice to everyone is to please stop risking your money on such systems.
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Have you encountered other Ponzi schemes? Which one?