Great frauds in history: Sergey Mavrodi’s Ponzi scheme

Sergey Mavrodi turned his computer import business into a financial investment scheme and plundered hundreds of millions of dollars.

(Image credit: 2007 AFP)

Sergey Mavrodi was born in Moscow in 1955 and went on to study at the Moscow Institute of Electronics and Mathematics before launching his own business. He was briefly jailed for black-market activity in 1983. In 1989, he took advantage of the end of communism to launch MMM. Initially, this was a business importing computers; it transformed into a financial investment scheme in 1994.

What was the scam?

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

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