Home Business 3 million Nigerian investors lose N18b in MMM
Business - March 3, 2017

3 million Nigerian investors lose N18b in MMM

About three million Nigerian investors have reportedly lost N18 billion in the collapsed Popular Phonzi scheme, Mavrodi Mundial Movement (MMM), the Nigerian Deposit Insurance Corporation (NDIC) said on Thursday.

Alhaji Umaru Ibrahim, the Managing Director of NDIC said at the 38th Kaduna International Trade Fair organised by the Kaduna Chambers of Commerce, Mines and Agriculture (KADCCIMA), that the corporation was unhappy that Nigerians fell victims despite experts advice which were meant to protect them.

The Managing Director who was represented by the Deputy Director (Communication and Public Affairs), Alhaji Hadi Suleiman, said that in spite of warning by the Central Bank of Nigeria (CBN) Nigerians still staked their money in the scheme.

He also warned that the use of virtual currencies, such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin and Onecoin as currencies or medium of exchange are Internet-based transactions and are not authorised by the CBN.

The Managing Director explained that there were many risks involved in participating in virtual money transactions and cautioned that any persons or group of persons investing their hard earned money in the Phonzi scheme were doing so at their own risk.

“The Phonzi scheme is the phenomenon of illegal fund managers, popularly called Wonder Bank’ which has continued to defraud unsuspecting members of the public of their hard earned money. This phenomenon has been a source for concern because despite our repeated warnings over the years, some members of the public have continued to fall victims of their fraudulent practices,” he said.

“We will like to reiterate the fact that these fund managers are illegal as they are neither licenced by the CBN to take deposits from members of the public nor are those who patronise them covered by the NDIC deposit insurance scheme.

“I want to also draw the attention of some cooperative society which often go beyond their primary mandate by accepting contributions from members, as cooperative societies are only recognised to mobilise savings from their members”.

The collapsed MMM last week announced it will freeze some Mavros of its participants. It also said in an information forwarded to members last Wednesday that it has introduced new measures to ‘serve them better’.

MMM said it planned to launch the new rules which will “stop the growth of confirmed Mavros acquired before the 1st of January 2017’’.

Meanwhile, more than three million Nigerians, who invested in the scheme with the hope of getting 30 per cent in return were thrown into distress since MMM folded up.

Chuddy Ugorji, the initiator of the Nigerian faction of MMM has reportedly fled the country with his wife, Amaka.

Unconfirmed report says the MMM Number one Guider has absconded and relocated to Philippines.

He fled the country when many investors were waiting anxiously to be paid back their money with the agreed interest.

Chuddy’s relocation came barely 24 hours after he released condition for the payment of some three million Nigerian investors. (NAN)

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