MMM is the private company of Sergei Mavrodi, better known as the classic and largest financial pyramid in the history of Russia. Registered in 1992. According to various sources, the MMM consisted of from 2 to 15 million Russians. In 1994, the company actually ceased its activities, but legally existed until 1997. In 2011 and 2012, Mavrodi tried to build new pyramids, which also failed.
Instructions
Step 1
At the beginning of its existence, MMM was engaged in the sale of computers and office equipment. Along with the main activity, there were attempts to engage in advertising, stock trading, voucher privatization and even organize beauty contests.
Step 2
In 1993, MMM issues its first shares with a par value of 1,000 rubles. Since the beginning of the sale, the shares have been growing in price almost every day, which ensured good demand for them from the Russians. The first issue of 991,000 shares sold out quickly, and MMM's management decided to issue a second issue of 1 billion shares. The Ministry of Finance of the Russian Federation refused to register, although there were no reasons for this.
Step 3
When the promotions came to an end, MMM tickets began to go on sale at a price of 1 / 100th of the share price. This was very convenient, as the prices of stocks rose so much that they became too expensive for the average person.
Step 4
Subsequently, ticket sales were replaced by a voluntary donation system. The depositor, allegedly voluntarily, donated money to Mavrodi, in return receiving a branded souvenir - tickets of JSC MMM. This made it possible to bring the relationship between the investors and Mavrodi personally into the area of purely civil relations between two individuals. When withdrawing a deposit, Mavrodi donated his personal money to the depositor. Legally, neither of the parties was obliged to each other.
Step 5
After the introduction of this step, the prices for shares and tickets of JSC MMM began to be set personally by Sergei Mavrodi. Quotes were announced on Tuesdays and Thursdays and were advertised in newspapers, announced on radio and television. Moreover, the "estimated" quotes were announced in advance for 2 weeks in advance. The rise in prices for promotions and tickets reached 100% per month.
Step 6
For six months of the company's activity, prices for shares and MMM tickets have grown 127 times. They did not have time to count the money and simply kept it in the rooms. According to some estimates, Sergey Mavrodi's profit was approximately $ 50 million a day. The country's leadership understood what consequences this could lead to, but legally MMM complied with all laws. By the summer of 1994, Mavrodi himself was actively studying American law, negotiating with American banks and brokers in order to create a similar pyramid in the United States.
Step 7
Since July 1994, the state began to conduct a large-scale information campaign against the MMM, alerting the population of the danger and urging them to withdraw their deposits. This provoked panic and further collapse of the financial pyramid. Although this fact gave Sergey Mavrodi a reason to assert in the future that MMM ruined the state, despite the fact that the flow of its depositors was tending to zero. Taking advantage of the panic, the prices of shares and tickets of MMM were reduced by 100 times, and Mavrodi tried to redeem his securities for next to nothing.
Step 8
On July 29, 1994, Mavrodi set prices for his shares at their original par value - one thousand rubles, promising that now they would grow by 200% per month. The panic has stopped, ticket sales of JSC MMM have grown again. On August 4, 1994, Mavrodi was arrested for alleged tax evasion, and MMM's activities were suspended. However, he was soon released and even was elected to the State Duma of Russia.
Step 9
Considering the fact that the majority of investors did not register their transaction to purchase MMM shares, the official number of victims was 10 thousand people, although from 2 to 15 million actually suffered. 50 Russians committed suicide. Mavrodi skillfully hid from the authorities until 2003, until he was arrested a second time. After a lengthy judicial investigation, which lasted until 2007, Mavrodi was sentenced to 4.5 years for fraud.
