Common Lies That MMM Promoters Tell You

MMM is an abbreviation for Marvordi Mundial Movement. It is a self acclaimed community of people helping themselves to financial freedom. It promises a 30% return on investment after a thirty-day period as well as added bonuses for new entrants as well as for referrals. The pyramid structured scheme was pioneered by ex Russian parliamentarian and convict, Sergey Marvordi in 2011 and was introduced to Nigeria in 2015.

Also read: How Some Guiders Intend To Crumble MMM

In a bid to lure unsuspecting potential members to the scheme, MMM promoters often dish out some lies that have now become very common nationally. Note that these are absolute lies and cannot be bent or twisted otherwise. It's my utmost duty therefore, to alert ignorant Nigerians as well as deter them from ignorantly falling into the subtle gimmicks and stratagems of unrelenting MMM promoters.

1. MMM is not a ponzi scheme 

What's a ponzi scheme to start with? A ponzi scheme—whose name was derived from Charles Ponzi, the business man who invented the scam— is one whereby investors' returns are paid for directly by later investors' investments, giving the false impression that the investment is viable.

With this definition, I don't think I really need to go into a full scale explanation of whether or not MMM is a ponzi scheme. How does MMM work? MMM is simply a cyclic system of Robbing Peter to pay Paul. What this simply means is that for Paul to be paid his 30% Return On investment plus initial capital, Peter has to be robbed in the same proportion; and the cycle goes on and on.

It is therefore deceitful and highly unthoughtful for anyone to claim that MMM is not a ponzi scheme as it clearly does no business of any sort. The system simply uses donations of new entrants to pay off existing members. MMM is a Ponzi scheme.

2. MMM functions like a cooperative society

Well. Well. Well. How true is this claim? MMM is said to be a community of people helping themselves financially which ordinarily qualifies it as a cooperative; but there's something else you must know. Cooperatives no doubt are run by a central system with members seeking to aid themselves by mutual contributions and of course, earn interest for doing so. However, to be able to generate such interest, the moneys contributed are used for businesses or investments which generate enough yield. The interest paid members are simply dividends of the interest yielded by the businesses/investments done with their collective donations. Now you may want to ask, does MMM do any business in order to generate the 30% profit promised? Certainly not. The only money that is paid by Marvordi is the extra bonus paid to first timers.
Like I established earlier, MMM is a ponzi scheme and therefore doesn't run same system as cooperatives.

3. MMM is not a fraud

It is very easy to believe that MMM isn't fraud judging by the fact that it pays well and it's pretty difficult to see who is robbed or defrauded in the scheme. The fact that MMM runs a cyclic system of robbing Peter to pay Paul means that as long as there is a Peter to be robbed, Paul will always get his pay and therefore cannot smell any fraud until the robber runs out of Peters.

Let's examine this simple illustration. Theresa is a fraudster. She promises First Bank a 30% return on investment after one month if granted a loan of one million naira. First Bank gives her the loan but at the end of the month, she has not got the money to pay back, so she runs to Zenith bank with the same proposal and then uses the money from Zenith to pay First Bank. Then, in order to pay Zenith, she goes to Gaurantee Trust Bank, gets a loan with the same terms and pays off Zenith and the cycle goes on like that.

Now, I'm pretty certain the managers of those banks would be head over heels about their very loyal customer, Theresa; just as thousands of Nigerians are with Marvordi. But then, what happens when there's no bank left for Theresa to run to; or a situation where she fails to get her fraudulent loan? The bank will go after her and only then will they discover her gimmicks; just like thousands of Nigerians eventually will when MMM runs out of new entrants and is forced into pause mode.

Well, I just hope that you realize sooner than later that your beloved MMM is a deceitful scheme—a handsome fraud; and that you begin to thread with caution. A word they say is enough for the wise but many words help sharpen up one that seeks wisdom.

My name is Chidubem Joseph Njoku and I just wanna make common sense.