Founder of the MMM pyramid scheme, Sergei Mavrodi, has died of a heart attack.
According to state media, the 62-year-old, whose MMM pyramid scheme deprived millions of Russians of their savings in the 1990s, 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 up to as much as 75 percent a month.
But it collapsed as soon as the number of new clients stopped growing, causing huge financial losses for at least 10 million people.
A former deputy in the state Duma, Mavrodi was found him guilty of financial fraud by a Moscow court and sentenced to 4 1/2 years in a penal colony in 2007.
He however re-launched another pyramid scheme in 2001, calling on investors to purchase so-called Mavro currency units in a bid to get rid of the “unfair” financial system and attain financial freedom.
The scheme spread to India, China, South Africa, Zimbabwe, and Nigeria between 2011 and 2016.
And like his previous endeavour, it crashed in these countries, leaving millions of investors licking their wounds.