Published On: Mon, Sep 26th, 2016

MMM Crashes In Zimbabwe, Thousands Lose Money

MMM Nigeria

By Dipo Olowookere

Reports from the Zimbabwean media have disclosed that the MMM Global Zimbabwe has collapsed; causing thousands of people in the country to lose their hard-earned money put into the scheme.

In Nigeria, the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) have warned Nigerians not to subscribe to the programme, calling it a Ponzi scheme.

However, some Nigerians have ignored these calls, investing millions of Naira into the programme, which promises about 30% to 50% profit monthly.

According to a Zimbabwe’s newspaper, IHarare, thousands of dollars have been lost by the country’s citizens to the online pyramid scheme.

It was reported by the paper that “the social financial network, which relied on an accelerating number of new members to pay off the old, abruptly terminated its services last week leaving participants stranded.”

It explained that the Reserve Bank of Zimbabwe had warned Zimbabweans that the scheme was fraudulent and that there was no legal recourse in the event they lost their money, but that was ignored, causing some of them to lick their wounds in secret now.

“The participants are made aware that they make their money by recruiting new members who in turn must recruit more members,” the Central Bank had warned.

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This development comes as Econet’s mobile financial service platform, EcoCash, distanced itself from the pyramid scheme. Participants had claimed they were using EcoCash for their transactions.

“We have noted that some of these pyramid schemes are allegedly advertising in a manner that suggests that the Ecocash facility is a medium for prospective members to deposit their money. This is not correct.

“We advise our valued customers and all stakeholders that Ecocash is a licensed mobile payment platform that enables customers to make financial transactions such as sending money, buying prepaid airtime as well as paying for goods and services within the confines of the law of Zimbabwe.

“EcoCash promotes safe and legal transactions but will not be held liable for any losses arising from the use of EcoCash to engage in illegal activities such as Ponzi schemes,” EcoCash had said.

MMM stands for Mavrodi Mondial Moneybox and takes its name from its founder, Sergei Panteleevich Mavrodi of Russia. He founded MMM in 1989 and the scheme was declared bankrupt three years later leading to the disappearance of Mavrodi until his arrest in 2003.

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The scheme advertises itself as a mutual aid fund under which recruited members contribute money to assist others and are promised investment returns of 30 percent per month. Some of the people left counting their losses told The Herald that they received emails that the scheme had been suspended until September 15.

“All along things were moving in the right direction and we now have nowhere to claim our investments,” said Mr Tinashe Muza of Harare.

“When we started putting our funds in the scheme one could get assistance within seven days but things later changed to 14 days and when we were shut out the waiting period was 21 days. What it simply means is that the number of people in need of help has outnumbered the number of people joining. Right now we have nowhere to get our money which we invested.”

Another victim, Mrs Rosemary Mawonde said: “We never thought the scheme would end this way as we believed that by using EcoCash to do the transactions, things were in order. I am surprised that EcoCash is also distancing itself from the scheme and it is clear that I will never recover the $300 that I invested.”

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While some people who were skeptical about the scheme started with small amounts, it is believed some poured in thousands of dollars anticipating higher returns. The RBZ said the schemes were fraudulent as existing investors were ‘paid money not from genuine market investment of their funds, but from contributions made by new investors, until a point when the scheme can no longer attract new investors,”

Additional information sourced from http://iharare.co.zw/thousands-of-zimbabweans-lose-money-as-mmm-crashes/

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About the Author

- Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Displaying 4 Comments
Have Your Say
  1. MMM Zimbabwe did not crashe. MMM Zimbabwe offers 100% mavro growth in 30days. This was implemented to attract participants due to the economic hardship in the country.

    I will do my best to explain wot really happened in MMM Zimbabwe in order to calm panics in d mind of misinformed MMM participants.

  2. Menyene Ekaiko says:

    Good News!!! Register on Get Help Worldwide and Provide help from the 1st to 7th October 2016 and get 50%,yes 50 percent of your investment plus registration bonus of 4k,10k or 20k in 30 days. To register, click the link https://gethelpworldwide.com/?ref_id=693-Abassi_Menyene_Ekaiko. Click on create account and you are on your way to financial freedom. Cheers

  3. Ola dan says:

    Hi, am Guider OLA DAN, A 10K+ in MMM Nigeria on 15th and 16th of Sept 2016, i provided help of #100,000 each and 26th of Sept 2016 i provided another help of #500,000 total #700,000 and 13th of Oct 2016 i got help of #5,679,000 and the total money was paid into my bank account. God bless mmm Together we can change the world.contact morganharry23@gmail.com or WhatsApp +2348131278064 to invest in MMM.

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