According to a report by
Moskovsky Komsomolets, the founder of the MMM series of financial pyramid
schemes, Mavrodi, died in Moscow at the age of 62.
Mavrodi was taken to a city
hospital from a bus stop overnight Monday, March 26, after he felt weakness and
pain in the chest area.
“The emergency team has failed to
save his life. He died this morning,” the report said.
Sergei Mavrodi created the
company “MMM” in 1992. It quickly gained popularity and became the largest
financial pyramid in the history of Russia.
The income of the members who
joined it was paid out of the contributions of new arrivals, and when the flow
of customers ceased to grow, non-payments began.
According to various estimates,
the number of victims of MMM has reached 10-15 million people.
In 1994, Mavrodi became a member
of the Russian parliament. Then he announced that he was giving up his
privileges: salaries and cars. Mavrodi stressed that he became a deputy only
for the sake of immunity.
Two years later, before the
presidential elections in 1996, he was stripped of his mandate.
In 2007, Mavrodi was sentenced to
4.5 years in prison for defrauding 10,000 investors out of 110 million rubles
($4.3 million). All this time, he left during the preliminary detention while
the investigation was conducted.
Mavrodi claimed he is not the
beneficiary of the donations and he is not used to flamboyant lifestyle.
His true charges of which he was
later convicted of is tax fraud though he claimed that MMM scheme is not a
business, but a mutual donation programme of which there is no law against
such.
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