Millions Of Nigerians Fall For Russian Ponzi Scheme
Fallen on difficult times amid the country’s first recession in decades, millions of Nigerians have turned to Mavrodi Mondial Moneybox (MMM), a Ponzi scheme with roots in Russia, which promises unreasonably high returns on investments. Originally set up in the late 1980s by Sergei Mavrodi, a Russian ex-convict, the scheme has become popular in Nigeria where it has operated for a year.
According to the Nigerian website, MMM is described as a “mutual aid fund where ordinary people help each other.” Essentially, registered participants pledge and donate money to help other participants who request it and expect them to return the favor at a later date. As a catch, the scheme promises 30% monthly returns for participants who donate.
Basically, Nigerian who donate money are eligible to request for the amount donated plus 30% interest after a month. That request is then fulfilled by another participant. Classic ponzi scheme realness that would make Joanne the Scammer quite proud!