‘MMM scam could potentially defraud over 500,000 Nigerians’ – Report

A scheme called MMM which has turned out to be a scam might defraud a lot of unsuspecting Nigerians according to sources familiar with the ponzi-like investment.

According to the company’s website: MMM is not a bank, MMM does not collect your money, MMM is not an online business, HYIP, investment or MLM program. MMM is a community where people help each other. MMM gives you a technical platform which helps millions of participants worldwide to connect those who NEED help to those who are ready to PROVIDE help, for FREE. All transferred funds to another participant are your help  given by your own good will to another one, absolutely gratis. If you are completely confident and certain in your actions and make your mind to participate, we kindly ask you to study carefully all warnings and instructions first. In cases of any matter regarding the topic Our online consultants are ready to help and answer all of your questions.

Which seems in order, but according to a report by  BehindMLM, members are actually being ripped off and it’s a scam.

The report says; “While affiliates deposit real funds into MMM Global, the company itself pays out Ponzi points called “Mavros”. Mavros must be exchanged for real money, subject to availability of new investment deposits being made.
 “MMM Eastern Africa, who run the MMM Global Zimbabwean chapter, have reduced the Mavro exchange rate from 1 Mavro to $1 to 5 Mavros to $1.
“This is effectively an 80% reduction in the dollar value of existing invested funds and the Ponzi ROI attached to them.
“For example, whereas previously an MMM Eastern Africa affiliate who invested $1 was promised $2 within 30 days, now they’ll receive just 20 cents.
“Affiliates who had been hoarding Mavros in their back office will now only be able to claim 20% of what they were previously able to request in withdrawals.
“This change has likely been implemented due to a lack of new withdrawals, leaving MMM Eastern Africa unable to meet it’s 100% ROI obligations come September 15th.
“By reducing withdrawal rates by 80%, it now takes longer for an affiliate to “break even”. But after five months the problem of paying affiliates more than has been invested,  known as a “Ponzi liability”, persists.”
The scheme had started becoming popular in Nigeria and it has been reported that an estimated 509,021 Nigerians are members of the scheme.

The SEC have warned that the scheme is a scam. They said so in a statement which reads:
“The attention of the Securities and Exchange Commission, Nigeria (“SEC”) has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net). The platform has embarked on an aggressive online media campaign to lure the investing public to participate in what it called “mutual aid financial network” with a monthly investment return of 30%”
“The Commission hereby notifies the investing public that the operation of this investment scheme has no tangible business model hence it’s a PONZI SCHEME where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission”.
“The general public is hereby advised to distance themselves from this online scheme. Please note that anyone that subscribe to this illegal activity does so at his/her own risk”.

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