Support The Moscow Times!

Mavrodi Closes MMM-2011

Sergei Mavrodi said he is shutting down his MMM-2011 pyramid scheme, and he promised to give all investors their principals with a 10 percent bonus after subtracting "the amount that they already received."

In a video posted Saturday on his website, Mavrodi blamed the dissolution of MMM-2011 on hounding by authorities, who in recent months have jailed him for days at a time for failing to pay administrative fines. On the same webpage as the video, Mavrodi wrote that MMM-2012, another pyramid scheme, "is developing even more than hoped."

He confirmed to The Moscow Times that MMM-2011 pays earlier participants with money invested by later participants. "There is no promise of profits," he said in the January 2012 interview. Mavrodi served 4 1/2 years in prison for defrauding an estimated 10 million to 15 million Russians in the mid-1990s.


Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.