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ARMENIA'S CENTRAL BANK WARNS AGAINST NEW MMM PYRAMID
RIA Novosti
18/04/2012
YEREVAN
Mavrodi was released from prison in 2007 after serving a sentence
for offenses relating to the collapse of the original MMM.
Armenia's Central Bank on Wednesday issued a statement urging people
to refrain from participation in the MMM-2011 pyramid scheme operating
in the country.
MMM-2011 (the three letters stand for "We Can Do a Lot" in Russia),
founded by Sergei Mavrodi, uses the WebMoney online payment system
to allow investors to buy tickets that work like shares, but have no
real value. The project's mastermind has promised investors returns
of 20-30 percent per month.
"The Central Bank of Armenia (CBA) doesn't issue licenses for such
activities. CBA warns citizens and organizations about the risks the
financial scheme poses to losses of significant funds and properties,"
the statement said.
In April, Prosecutors in Moldova opened a criminal investigation into
the activities of the new business project of Mavrodi. A license from
Moldova's National Bank is required for all entities that carry out
financial transactions in Moldova, the Prosecutor General's department
of social and economic investigation said. The National Bank confirmed
that acceptance of deposits from the population requires a license,
which MMM-2011 does not possess.
Belarusian prosecutors have also open an investigation into the
activities of MMM-2011.
A former mathematician, Mavrodi was released from prison in 2007
after serving a sentence for offenses relating to the collapse
of the original MMM. He described the new project as a "financial
social network."
While his 1994 scheme used an aggressive TV and radio advertising
campaign to reel in investors, the new project relies solely on
the Internet, a move which many see as a bid to attract Russia's
technologically-savvy youth.
Mavrodi's 1994 swindle, which came to be regarded as a symbol of the
lawlessness of the chaotic 1990s in Russia, was one of the largest
among hundreds of other such schemes in that era. The pyramids took
advantage of the ignorance of a nation still learning the basics of
a new capitalist system. Ponzi schemes became so commonplace that
their prices were quoted on the front pages of newspapers.
According to estimates, the MMM scam attracted between two and five
million investors, including a number of high-profile celebrities,
who lost around $1.5 billion when it collapsed.
RIA Novosti
18/04/2012
YEREVAN
Mavrodi was released from prison in 2007 after serving a sentence
for offenses relating to the collapse of the original MMM.
Armenia's Central Bank on Wednesday issued a statement urging people
to refrain from participation in the MMM-2011 pyramid scheme operating
in the country.
MMM-2011 (the three letters stand for "We Can Do a Lot" in Russia),
founded by Sergei Mavrodi, uses the WebMoney online payment system
to allow investors to buy tickets that work like shares, but have no
real value. The project's mastermind has promised investors returns
of 20-30 percent per month.
"The Central Bank of Armenia (CBA) doesn't issue licenses for such
activities. CBA warns citizens and organizations about the risks the
financial scheme poses to losses of significant funds and properties,"
the statement said.
In April, Prosecutors in Moldova opened a criminal investigation into
the activities of the new business project of Mavrodi. A license from
Moldova's National Bank is required for all entities that carry out
financial transactions in Moldova, the Prosecutor General's department
of social and economic investigation said. The National Bank confirmed
that acceptance of deposits from the population requires a license,
which MMM-2011 does not possess.
Belarusian prosecutors have also open an investigation into the
activities of MMM-2011.
A former mathematician, Mavrodi was released from prison in 2007
after serving a sentence for offenses relating to the collapse
of the original MMM. He described the new project as a "financial
social network."
While his 1994 scheme used an aggressive TV and radio advertising
campaign to reel in investors, the new project relies solely on
the Internet, a move which many see as a bid to attract Russia's
technologically-savvy youth.
Mavrodi's 1994 swindle, which came to be regarded as a symbol of the
lawlessness of the chaotic 1990s in Russia, was one of the largest
among hundreds of other such schemes in that era. The pyramids took
advantage of the ignorance of a nation still learning the basics of
a new capitalist system. Ponzi schemes became so commonplace that
their prices were quoted on the front pages of newspapers.
According to estimates, the MMM scam attracted between two and five
million investors, including a number of high-profile celebrities,
who lost around $1.5 billion when it collapsed.