The story of MMM and why the frenzy may not last
What is MMM? Succinctly, MMM is a Ponzi scheme company, established 1989 in Russia by Sergei Mavrodi, his brother Vyacheslav Mavrodi, and Olga Melnikova. The name of the company was taken from the first letters of the three founders' surnames. Initially, the company imported computers and office equipment, but in 1992, tax police accused MMM of tax evasion, leading to the collapse of the MMM-bank, and causing the company to have difficulty obtaining financing to support its operations. Faced with difficulties in funding its foreign trade, the company switched to the financial sector, offering American stocks to Russian investors, but met with little success. Later, MMM-Invest was created for the purpose of collecting vouchers during privatization, and ended up a similarly unsuccessful venture. The ‘successful’ MMM Ponzi scheme was however created in 1994. The company started attracting money from private investors, promising annual returns of up to one thousand percent,...