The negative impact of the current recession has been accentuated further as MMM Nigeria, a Ponzi Scheme now claims to have over 2 million members.
It would be recalled that PageOne reported in October that MMM claimed its members increased to 1.6 million. The rate of growth has surpassed its earlier milestone.
The data was released on its factional site- mmm-nigeria.net. The site is owned and operated by Ernest Mbanefo and linked to the main site nigeria.mmm.net another factional site operated by Chidi Anayo Ugochi and his franchisees of the scheme in Nigeria. PageOne cannot authenticate or deny the figure.
As to how the scheme is able to gain traction quickly, he said the scheme operates like a typical pyramid fraud that rewards people on top and the people who come in last will end up carrying the empty bag.
As a crash course, a financial expert who has been following MMM Global said the group gives its franchise to individuals with the support of its anonymous backroom engineers, they set up country specific operations that run on its own. Owners of the franchise are now required to push the scheme in their country and make it succeed. The reward is enormous and unimaginable. As a result of their position on the pyramid, people like Chudi and his co-franchisees might be making millions of Naira per week without providing a single help.
However, he said the system is built in a way that gives MMM Global the central control and algorithm that allocate funds to people up the ladder in the Ponzi Scheme.
In an announcement published on both sites yesterday, MMM Nigeria said ‘it is targeting all Nigerians’ to join the Ponzi fraud, a statement referred to as embarrassing and condescending by one of the critics polled on the development.
As far back as September, Nigerian government through the Securities and Exchange Commission, SEC had issued a disclaimer on MMM and other Ponzi Schemes. The SEC affirmed that the scheme is not registered as either a financial services provider and or a regulated securities company.
Last month, the Economic and Financial Crimes Commission, EFCC warned the general public to stay clear of MMM and other Ponzi Schemes. The commission announced that it will investigate and make public its findings about the scheme and its promoters.
The commission is yet to make any further disclosure about its ongoing investigation.