The writing was on the wall, but sometimes the allure of unrealistic returns gets the better of people. The Belvedere Ponzi scandal expose’ should have acted as a stark warning two years ago. But in September last year Russian-based MMM Global was listed as a potential pyramid scheme by the National Consumer Commission of South Africa, offering 30 percent returns. And worse yet, it was run by a known fraudster Sergey Mavrodi, who was convicted of defrauding 10 000 investors of around R520 million in a Russian court in 2007. Nothing was taken further and now Mavrodi’s gone into hiding, with investors potentially cashless. And as much as investors have to take responsibility for their actions, surely regulators need to get more involved and have more firepower to stop situations like this. Prevention is better than a cure. Fin24’s Matthew le Cordeur lays out the complete story below, as another one bites the dust. – Stuart Lowman
By Matthew le Cordeur
Cape Town – Russian convict Sergey Mavrodi has allegedly gone into hiding after announcing that his Bitcoin-based MMM Global scheme had failed and was shutting down this weekend.