International Internet Magazine. Baltic States news & analytics
Thursday, 30.07.2015, 17:08
Lithuania stops MMM-2011 Ponzi scheme operations
MMM-2011, founded by Sergei Mavrodi, uses the WebMoney online payment
system to allow investors to buy tickets which work like shares, but
have no real value. The project's mastermind has promised investors
returns of 20-30% per month, informs LETA/ELTA.
The Lithuanian General Prosecutor's Office has been collecting evidence since March, after a request from the Bank of Lithuania, and several people were arrested on June 4, attorney Zenonas Burokas told a news conference.
Police detained five people accused of fraud, illegally acquired property and of financial pyramid establishment, and arrested all property which may cover clients losses. The investigators determined that MMM-2011 obtained LTL 1.5 million (EUR 432,800) from Lithuanian clients' deposits.