Russian Who Swindled Millions of Shillings from Kenyans Passes Away

Sergey Mavrodi, a convicted Russian fraudster who operated a web-based pyramid scheme that swindled millions of shillings from Kenyans has passed away in Moscow.

Mavrodi reportedly succumbed to a heart attack in the Russian capital on Sunday. The 62-year-old founded the Mavrodi Mondial Moneybox (MMM) Global, which had a local subsidiary that operated the scheme dubbed MMM Kenya.

The firm is named after three of its founders; Sergei Mavrodi, Vyacheslav Mavrodi and Olga Melnikova.

MMM Kenya was an internet-based 'investment' scheme that promised new users a 100 percent profit on the money they invested in the company.

“How much money do you need to be absolutely happy?,” the online application posed to potential new users.

New members joining the scheme were told that they would earn crypto-currency points referred to as 'Mavros' if they sent cash, which was allegedly meant to help the poor.

For example, if you state Sh5 million as the amount you require, you would be asked the cash you can offer as “help” to others. It is from that amount that they would calculate when you will be able to start receiving help yourself. New users were asked to make a “personal help” of not less than $10 (Sh1,000).

They were promised a monthly return of 30 per cent on the investment and higher profits when they helped members that ask for financial assistance.

The scheme was first exposed in Kenya in January this year, although it had already gone down in several other countries by then.

Kenyan users who were holding 'Mavros'  are currently unable to do anything with them after the company said that its operations in the country had been put on hold. “In the near future, the administration will take a decision concerning MMM’s future and report on it officially,” a statement on the MMM-Kenya website noted.