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Russian FAS claims fraudster's new project financial pyramid

© RIA NovostiSergei Mavrodi
Sergei Mavrodi - Sputnik International
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The Expert Council for Financial Markets of the Russian Federal Antimonopoly Service (FAS) has decided that Sergei Mavrodi's new MMM-2011 project is a financial pyramid scheme.

The Expert Council for Financial Markets of the Russian Federal Antimonopoly Service (FAS) has decided that Sergei Mavrodi's new MMM-2011 project is a financial pyramid scheme.

Deputy Head of FAS Andrei Kashevarov explained that based on their decision, they will send the conclusion to law-enforcement agencies. According to him, an investigation will characterize Mavrodi's actions as preparation for a crime linked with fraud.

Mavrodi, who established the "MMM" financial pyramid in the 1990s, announced in early January that he is starting a new project. Mavrodi promises that his new investors will receive 20% profit per month, while retirees and disabled persons will get 30%. He suggests investors open dollar accounts in electronic payment systems, such as WebMoney, and buy virtual tickets. A spokesperson for the WebMoney online payment system said the company will make every effort to prevent the illegal use of its e-wallets. Sergei Barsukov, head of the department for financial policies at the Finance Ministry, already called Mavrodi's scheme "cynical lies".

According to different assessments, between 2 million and 5 million people bought MMM shares, and lost as much as $1.5 billion. Mavrodi was on the run until his arrest in Moscow in 2003. He served his four-and-a-half-year sentence in jail and was released in May 2007.

MOSCOW, January 21 (RIA Novosti) 

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