Financial Crime World

MMM’s International Comeback: A New Ponzi Scheme Emerges in Armenia

Introduction

Yerevan, Armenia - A notorious Russian Ponzi scheme, MMM, is reportedly making headways in Armenia, raising concerns among financial regulators and consumer protection agencies. In this article, we’ll take a closer look at the recent re-emergence of MMM in Armenia and explore the implications for the local population.

Making a Comeback in Armenia

Between April and May 2023, MMM launched a PR campaign in Armenia, targeting people affected by the country’s growing income gap and poverty with allegedly new international NGO and international benevolent fund status. The organization is now being run by three local directors - Tachat, Luiza, and Ghevond - and is using the slogan “We are Changing the World” in its advertising materials.

Origins of Deception: A Brief Look at MMM’s Past

  • Established in the 1990s: MMM was founded by Sergei Mavrodi in Russia.
  • World’s largest Ponzi scheme: MMM attracted an estimated 5 to 40 million people, leaving them with total losses estimated between $3.3 billion and $12.6 billion.
  • Financial collapse and tragic consequences: The financial collapse of the scheme resulted in the suicide of at least 50 investors.

Another Round of Deception?

With MMM’s past raising many questions, financial experts are urging caution and reminding the public of the inherent dangers of Ponzi schemes. Authorities are continuing their investigation, and in the meantime, Armenian citizens are encouraged to:

  1. Exercise greater financial literacy: Familiarize yourself with investment concepts and risk management to make informed decisions.
  2. Skepticism towards unsolicited investment opportunities: Be wary of schemes promising high returns with little to no risk.
  3. Stay informed about regulatory updates: Keep up-to-date with governmental investigations and regulations related to investment opportunities.

Conclusion

As the re-emergence of MMM in Armenia continues to unfold, it’s important for the public to remain informed and vigilant. By staying financially literate and being skeptical of unsolicited investment opportunities, citizens can protect themselves from potential scams. Keep an eye on the investigation conducted by the authorities for more developments on this topic.