Senate warns Nigerians over participation in MMM

Members of the Senate have warned Nigerians to desist from participating in the MMM ponzi scheme, saying it would soon crash and leave them with nothing.

The Chairman of the Senate committee on Banking, Insurance and other Financial Institutions, Senator Rafiu Ibrahim, urged Nigerians to be careful with where they put their hard-earned money.

Ibrahim said: “Any financial institutions of any kind that is not under the regulation of a Regulator such as MMM is a pyramid that will soon burst. We engaged the CBN and they have issued a statement in the recent past. So Nigeria should be wise and know that there is no free money anywhere. One wonders which investment can yield 30% flat any where in the world.”

Senator Gbolahan Dada added: “It is important for members of the Public to know this fact. MMM was a Russian company founded in 1989. The company was established by Sergei Mavrodi, his brother named Vyacheslav Mavrodi, and Olga Melnikova.

“The name of the company was taken from the first letters of the three founders’ surnames. MMM could be called a wonder bank. Over 5 to 40 million people lost up to $10billion in the 90s when it was introduced. The company was shut down by Russian Police in 1994 and declared bankruptcy in 1997.

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“It is unfortunate that some unscrupulous Nigerians are capitalizing on the current economic hardships to defraud unsuspecting Nigerians by encouraging them to part with their hard earned money with mouth-watering interest or returns.

“MMM does not contribute or add value to the economy because the records of such transactions are not kept and not made open to the public or regulatory authorities. It is a product of fraud and nothing good comes from fraud.

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“The operator pays returns to the investors from new capital acquired from new investors and not from legitimately earned profits. The operators entice investors with mouth watering offers. The short term returns are abnormally high and unusually consistent. They may struggle to pay the first returns but would bolt away with subsequent capital or deposits made by investors.

“The money involved in MMM are usually spent by the promoters on frivolities. The promoters engage in ostentatious lifestyles. They hardly have concern for the unsuspecting investors. It is fool hardy for any members of the public to fall prey to the scheme despite warnings from stakeholders. Those patronizing MMM will have a tale of woes to tell after losing their deposits.

“The House of Representatives has taken a step to condemn the Scheme and also promised to investigate the scheme. Secondly, the CBN and majority of the Banks have warned members of the public from participating in the scheme.

“The EFCC also issued warnings to arrest perpetrators of that scheme. My take is simple. Any Nigerian who decides to participate in the scheme is on his own and should blame himself in the event of any loss. The only thing the Senate can do is to advise Nigerians to shun the temptation of getting rich quick so as not to lose their meager resources.”