Mavrodi and company: the most famous financial pyramids in the world. Financial Pyramids - List of the Most Famous How a financial pyramid works in brief

The population of our country knows firsthand about financial pyramids. After all, just 10-20 years ago they were created literally at every step. People gave their last money to get even more money. At the same time, one involuntarily recalls the largest case in this area. We are, of course, talking about MMM by Sergei Mavrodi. A huge number of people suffered from this financial scheme, some proceedings are still ongoing. Financial pyramids are also being created now, but they operate on different principles. The main goal remains the same - to earn as much money as possible, and in short terms.

History of financial organizations of this type

It is worth noting that the financial pyramid appeared long before most people in Russia knew about it. If we talk about the first such organization, we can recall the Mississippi Company, which was founded in England in the 18th century. This society was invented and founded by John Law. His idea was to print banknotes instead of gold and silver coins. At one time, this almost bankrupted such a large state as France.

Then there was a long period when these organizations were forgotten. Charles Ponzi began creating a financial pyramid similar to the modern one in 1911. His idea was to circulate and exchange international postal coupons. By the way, these coupons are still used at the post office. The profit promised to be simply unrealistic - about 400%.

People invested all their funds for a short period: from 45 to 90 days. Ponzi promised to get a quick profit, but in the end the pyramid collapsed, and investors were left with nothing. The golden age of these financial institutions occurred at the end of the twentieth century. Here countries such as the USA, China and Russia have come forward.

Financial pyramids in Russia

Of course, it would be surprising if the idea of ​​making money out of nothing did not become popular in our country. Many experts associate the financial fraud of companies with the economic situation on the market. It was as if that time itself was pushing various companies to participate in deceiving investors. For example, the organization “Russian House of Selenga” was a fairly successful company with good profits. However, in pursuit of huge sums, she abandoned her activities.

When talking about financial pyramids in Russia, one cannot ignore MMM. The creators of this scam are Sergei Mavrodi, his brother Vyacheslav and his brother’s wife Olga Melnikova. By the way, it was the first letters of these people’s last names that became the name of the pyramid, and not the slogan “we can do a lot.” MMM has become not just one of the world's largest financial organizations of this type, but also a role model.

Mavrodi promised his investors profits of up to 1000% per annum, and in a short time. He ran great advertising that got people lining up to hand over their money. The Russian man was looking for easy money, and he paid for it. The heyday of MMM came in 1994, and then the proposal caused a sensation. Mavrodi showed by his example how a financial pyramid works. During this year, about 10 million investors were defrauded, and their funds were buried.

Pyramid principle

Many people believe that it is easy to come up with and implement such a scam; you just need to give good advertising. However, this belief is a misconception. The creators of the pyramid must have financial literacy and also be good psychologists. The principle of operation of such an organization is one - to make a profit from investors' investments. All income is divided between the creators and the first investors. New members are actively recruited until the end of the pyramid's existence. Usually it collapses quickly, but the scale of the action is almost impossible to estimate.

It’s just that at one point the payment to investors stops, and they are left with nothing. It is necessary to consider the principles of a financial pyramid:

• upon entry, each investor is promised a high percentage, thereby inspiring investors to make large investments;
• often joining an organization is very simple; you do not need to take special courses or register anywhere;
• you need to understand that the creators will spend a huge amount of money on actively promoting the pyramid, because it’s not for nothing that they say that advertising is the engine of trade.

Features of a financial scam

How to recognize such an organization? It should be noted that this is quite easy to do, since many do not even try to disguise themselves. There are also those who try to do something for this, but they fail.

So, let's look at the main signs of a financial pyramid:

1. Unrealistically high interest rates. This is probably the most obvious indicator of deception. After all, if you analyze the simplest things, you can understand that the pyramid is offering something very suspicious. For example, the same banks in better times gave a maximum of 15-20% per annum. And here they offer you 200, 500 and even 1000%. Doesn't this seem strange?
2. You are practically forced to invest a certain amount of money. If you take a bank, then it is hardly possible that they will pull your sleeve and ask you to open a deposit. Deceived investors complained that they were influenced by hypnosis.
3. There is no information about the business the company conducts. In other words, they pour water on you all the time. They talk about a highly profitable business, but do not name specific amounts. The essence of a financial pyramid is that no business exists. Money is earned exclusively from defrauded investors.
4. Search for people. It is not enough to contribute money; you need to bring as many friends and relatives as possible to the organization. A little advice: compare everything with the bank and draw conclusions. It is unlikely that employees of a credit institution will ask you to find clients.
5. Sectarian slogans. It is no secret that financial pyramids often use motives like “success with us,” “only you can help people,” etc. Quite often, the organizers say that the creator founded a new type of company, that such a company has never existed in Russia and things like that.

Multi-level pyramids

The classification of such financial organizations involves dividing them into two types: multi-level and Ponzi-based. Currently, it is multi-level schemes that have gained the greatest popularity. They do not hide their activities and are in demand.

These pyramids work according to a simple scheme. First, the person who joins contributes a sum of money, and it is divided among the higher-ranking members who invited him. If a new investor brings people, then their investments are distributed between the members of the pyramid and himself.

The main problem with such schemes is the lack of new people. For this business to thrive, it is necessary to involve other members on a daily basis. Finding new people is very difficult. A common situation is when participants who have just joined the organization do not find clients at all, and thus do not earn money. According to statistics, there are about 90% of such people in pyramids.

Many people dreamed of becoming “not a freeloader, but a partner” and receiving 200% of the profit or “earning” in a month, doing nothing, for half a car - for which they paid

Died in Moscow at the age of 63 Sergey Mavrodi- founder of the largest financial pyramid in Russian history, MMM. According to preliminary information, the cause of death was a heart attack. According to sources, Mavrodi felt ill on the street and was hospitalized in one of the capital’s hospitals, where he died some time later. His death became known on March 26.

Over the phenomenon of a person who in the 90s became almost family to millions of Russians, just like the advertising hero of the famous MMM commercials Lenya Golubkov, fought for decades. It is still not clear how he managed to seduce and ruin so many people. And, most importantly, even the collapse of another Mavrodi pyramid did not interfere with the success of another. There is a website about him and other brilliant domestic and foreign schemers who ruined millions of gullible citizens.

MMM by Sergei Mavrodi

The great schemer had several pyramids - the first appeared back in 1989. By 1994, according to some sources, about 15 million people became its investors. It was then that it began to work like a pyramid, attracted into the hungry nineties by the fabulous income that Mavrodi promised, there were thousands. His hero Lenya Golubkov, who explained from numerous television commercials that he is not a freeloader, but a partner, and that the dream of a Russian person - to receive money without doing anything (up to 200% per month!) is quite a reality, was so convincing!

When the pyramid collapsed, its founder blamed the government. In 1997, the MMM cooperative was closed, data on the victims varied - according to some reports, there were about a million of them. The founder of MMM considered the amount of money... in rooms - in total there were ten rooms with money in the joint-stock company.

In 2003, Sergei Mavrodi was arrested on charges of fraud and tax evasion. According to the bailiffs, the total amount of debt to citizens amounted to about five billion rubles.

Coming out of prison four years later, Mavrodi soon founded a new pyramid. And not just one. And again there were those who believed him. In 2011, he set his sights on Ukraine. Then he focused on abroad - in particular, his next MMM became incredibly popular in Nigeria.

Mavrodi’s final target was China - the last MMM pyramid appeared in 2015, its “partners” were offered to buy bitcoin - and then they were sent as mutual aid to those who became members of the fund earlier. Also in 2016, Mavrodi launched his own cryptocurrency.

Financial pyramid of Charles Ponzi

The first “pyramid” in the USA, created in 1919 by an Italian emigrant, was subsequently taken as a basis by many creators of similar structures. Enterprising Ponzi discovered that, thanks to currency exchange rates, he could resell international response coupons issued in other countries in the United States—and make a handsome profit.

Charles founded the company, found investors, promising them at least 50% of the profit in a month and a half, and 100% in three months, which was a record. But he had no intention of buying coupons. And he didn’t hide the fact that they couldn’t be exchanged for cash - he just didn’t advertise it, and for some reason investors, blinded by profits, weren’t interested in it. In 1920, the pyramid collapsed after one magazine estimated that more than 150 million coupons were needed to cover the Ponzi company's investments - while only a fifth were in circulation.

The investors were able to get some of the money back, and most of them even left the business with a profit - albeit less than what the enterprising Italian promised. Investors, or partners, of subsequent pyramids, as they began to be called in Russia in the era of MMM and Leni Golubkov-Sergei Mavrodi, were less fortunate.

Bernard Madoff's financial pyramid

It holds first place in the ranking of world financial pyramids. Over the course of more than a decade and a half of its existence (it operated intermittently from 1960 to 20008), Maddof Investment Securities deceived about three million people; the total loss inflicted on investors is estimated at $50 billion only by the most approximate estimates.

American Bernard Madoff for many years they trusted him unconditionally - his investors were well-known banks and hedge funds, and his entire family, including distant relatives, worked at the company. The collapse of the pyramid was facilitated by the 2008 crisis. The influx of money from new investors ended - and previous investors stopped receiving dividends. When the fraud was revealed, only Maddoff ended up behind bars. He received 150 years in prison.

Allen Stanford's financial pyramid

The head of Stanford Int Bank started his own business in the early 90s and burned, like Madoff, in 2008. Stanford with assistants they traded certificates of deposit and other investment instruments, attracting clients with more than 10% of income.

In 2008, the company’s activities aroused the interest of the Securities and Exchange Commission; as a result of the audit, many facts were revealed: in reality, clients suffered losses of up to 10%, the company had never been audited, etc. The total amount of losses was about $8 billion.

The head of the pyramid tried to escape from the United States, but could not pay off his credit card. Subsequently, Stanford tried to plead a personality disorder, but the court found him guilty of almost all charges, of which there were more than a dozen, from fraud to money laundering. The schemer never admitted guilt. He received 110 years in prison - half what the prosecution demanded.

“Vlastilina” by Valentina Solovyova

In 1992, in Podolsk near Moscow, an entrepreneur Valentina Solovyova opened her own enterprise, which began to accept deposits. The attraction scheme was simple: after depositing an amount equal to half of a new car, the investor was promised that in a month with the payment of interest he would be able to buy himself the desired car.

Two years later, Vlastilina began accepting money for deposits and deposits for apartments, and then interruptions in dividend payments began. By the way, the defrauded investors never received a single apartment.

In 1995, Valentina Solovyova was detained, four years later she was sentenced to seven years in prison - but was released in 2000, “for good work and behavior.” According to official data, 16 thousand people were recognized as victims, their losses amounted to about 537 billion rubles and $2.6 million.

"Hoper-Invest" Konstantinovs

“Well, here I am at Khopra,” began the advertisement of another notorious Russian company, which aired on all television channels in the first half of the nineties. In commercials created in 1992 by natives of Volgograd Leah And Lev Konstantinov the Khoper-Invest pyramids lit up and the stars - the cabaret duo "Academy", Lolita Milyavskaya And Alexander Tsekalo. Khoper-Invest is an excellent company, they cheerfully campaigned.

The regional network was engaged in accepting cash deposits - part of the money went to the development of various projects (for example, the House of Models on Kuznetsky Most), part was converted into foreign currency and exported, as it later turned out, abroad.

In 1997, Liya Konstantinova was arrested and sentenced to eight years - but then released on parole. Her son managed to leave for Israel. There he tried to do business, but went broke. They said that he had become almost homeless.

Data on the victims vary: according to law enforcement agencies, these are more than four million depositors, who lost a total of more than three trillion rubles (at the exchange rate before the redenomination), but, according to some information, the number of victims could be much higher.

The whole problem begins when financial pyramids disguise themselves as network marketing companies. 5 signs of a financial pyramid under the guise of network marketing

Welcome, dear readers of our blog! Alexander Berezhnov and Vitaly Tsyganok are in touch.

Friends, today there is a special article on the HeatherBeaver blog. Surely you have had situations when an acquaintance calls you and invites you to participate in a “super project” that he recently found and will soon become very rich.

You come to the presentation of the project and they tell you that by investing a certain amount of money, you can very quickly gain financial freedom, receiving money for attracting new participants.

The fact is that thanks to the development of the Internet and the peculiarities of the psychology of the Russian people, financial pyramids continue to flourish, and gullible citizens take their last savings there in the hope of quickly improving their financial situation.

Yes, this phenomenon has existed before, but never before has it been on such a scale.

Lately, we regularly receive offers to participate in “such and such” project, which promises large payments for investing our funds there.

By the way, if you type the phrase “how to make money” and the like in the search bar, we will immediately see tens of thousands of offers for all occasions. From the most ordinary "vacancies", "Job", "bank deposits" to incredibly exotic: "Conspiracy to increase capital", "The white magician will help you gain wealth" and much more.

Which offers should you trust and which should you not if you decide to make money?

We studied this topic in great detail, summarized our experience, and personally talked with experts in the field of finance. But today we are talking about financial pyramids, so we will examine this topic in detail.

So, the good old wisdom still applies:

“Free cheese only comes in a mousetrap”

And if 20 years ago in our country people first encountered this phenomenon, then in other countries the financial pyramid model has existed for a long time, and today it is prohibited by law. Criminal liability applies for using this earning model.

In our young country, from the point of view of the capitalist system, the memory of the first financial pyramids is still fresh.

But first things first...

1. What is a financial pyramid?

This is an income model where redistribution occurs cash from lower members of the pyramid to higher ones. That is, the top of the pyramid always receives more than the lower links.

Often, financial pyramids are disguised as investment funds and various commercial projects that supposedly invest your money in highly profitable financial instruments or “super profitable projects.”

The main reason why the financial pyramid model still exists, and will probably never disappear, is greed people, the desire for quick enrichment, for freebies.

In our country, people have a pronounced desire to get rich quickly, since Russian folklore presents wealth as something sudden that does not need to be earned through one’s own labor, while spending considerable time.

Remember, we have a fairy tale about Emelya ( "At the command of the pike"), who was lying on the stove and, thanks to the pike, became rich. Fairy tale "About the Fisherman and the Fish" and so on.

Just as cultural scientists tried to find the idea of ​​wealth in our fairy tales, they never found it. If the hero of the work goes on a journey or starts something, it is not at all in order to become rich, but in most cases, to find himself.

It is natural, of course, that everyone strives to have fun today. But so as to work less.

We like one very wise saying:

“Everyone wants to be rich, but no one wants to become rich.”

Robert Kiyosaki

(famous entrepreneur, investor,

This means that if you approach a person on the street and offer him a million rubles just like that, no one will refuse. But if you ask most people whether they are ready to go through the path with great difficulties and often hardships on the way to wealth, we are sure that many will refuse it, even realizing that a great reward awaits them in the end.

Have you already received offers to invest your money in a dubious project? We are sure that you will not let us lie that you really want to earn a lot quickly and a lot!

So, we found out that the financial pyramid exploits one of the main human vices - greed.

It is curious that most often the victims of scammers in such cases are poor people who “are so short of money” that they are even willing to take on debt in order to quickly receive a large percentage of their “investments.”

It's no secret that one of the most famous financial pyramids is MMM. Now, many years after its first start, it has migrated to the Internet.

And the success of MMM at that time was largely due to aggressive advertising, the heroes of which were ordinary citizens of our country:

Friends, we are sure that everyone has heard about this pyramid, perhaps even someone has invested their money there. We are categorically against such projects, since a simple mathematical calculation tells us that most people will be left without money if the pyramid collapses. And it will collapse in any case, since the number of people on earth is limited. This is even taking into account the fact that all inhabitants of our planet will join it.

Here you can argue that there are people who made money in MMM and other similar projects. But! We do not deny this. One of our friends invested a good amount of money in MMM-2011 and made money from it.

Therefore, we do not want to argue with the facts of earnings; let’s give a simple example.

Casino

Who do you think makes money there regularly?

Right! The owners of the establishment themselves.

Therefore, to say that you can make money in a financial pyramid is the same as comparing it with gambling. Yes, you can make money there too. But now we will explain to you why casino owners will make money in any case, but players will definitely lose in total.

It's all about the so-called mathematical expectation.

Let's explain this using the example of a dice.

Let's say that you invited 5 of your friends, acquaintances or relatives to your home and invited them to take part in a gambling game with a six-sided die. Everyone places a bet of 10 rubles on a number from 1 to 5. The one whose number appears wins all the money for the current bet. But if the number 6 comes up on the die, then all the money goes to you, as the organizer of the event. It turns out that the volume of incoming funds is always greater than the total winnings. Therefore, you as an organizer will never lose.

Such a striking example is the game “roulette”. You know that in addition to red and black fields there is also “zero”, that is, zero. It is he who shifts this very mathematical expectation towards the casino.

That is, the casino in any case receives a percentage of the total winnings of all participants in the gambling game, otherwise the casino owners would not earn such a lot of money.

This is what happens in a financial pyramid. In any case, the organizers will make money here, and the ordinary participant will most likely remain a loser.

2. What are the signs of a financial pyramid? 5 main signs

So, 5 main signs of a financial pyramid:

1. The need to invest a significant amount of money;
2. Promise of high interest and quick return of invested money;
3. In order to receive payments, you need to attract your friends so that they also invest their funds there;
4. The project is presented as “know-how”. It contains very non-standard work patterns that arouse suspicion;
5. The project office leaves much to be desired for a “super-successful” and “dynamically developing business.”

Think for yourself, if this was really “Know-how”, then why would the organizers involve your “measly pennies” in some office. They would probably find a wealthy private investor, a targeted venture fund, or, as a last resort, they would open an OJSC (Open Joint Stock Company) and issue their shares to raise money by selling them. And if neither funds nor private investors agreed to invest money in this project, it is worth thinking many times about whether it is really as wonderful as the organizers say about it.

There are many examples of people investing their money in “gold mines” on different islands, “new technology” funds, etc.

Naturally, they all turned out to be fraudulent, and people lost their money.

How, then, should you properly manage your money? – you ask. In our opinion, it is best to invest money in your self-education, and then open a business with minimal starting capital. Read more about how to do this in this article. You will develop yourself personally, save money, and gain entrepreneurial experience.

Let's continue our conversation about exposing financial pyramids.

3. Financial pyramid and “network marketing companies.” What's the difference?

And now we will dispel the misconceptions of those who think that network marketing and a financial pyramid are the same thing. People think this because at first glance there are certain similarities.

We often hear from people when they are invited to companies that distribute their products through a network marketing scheme the following words: “This is network marketing, this is a pyramid!”

Friends, this is all due to illiteracy. Let's dot the i's.

Network Marketing- this is an absolutely legal way of promoting goods from producer to consumer, it just lacks some intermediary links. The peculiarity of generating income in this scheme is that the profit of a network participant is formed from the turnover that occurs in its structure.

That is, if the people invited by a person did not purchase anything, but simply registered with the company, then he receives nothing, and registration in such a company either costs nothing at all or is symbolic: from 100 to 500 rubles.

The whole problem begins when financial pyramids disguise themselves as network marketing companies.

4. 5 signs of a financial pyramid under the guise of network marketing

These are the signs:

1. Unreasonably high entry fee. As a rule, it is from 100 to 5000 dollars. It is from this money that the remuneration to the “distributor” is paid.
2. The product as such either does not exist at all or has no market value outside this organization.
3. There is no documentary evidence of the receipt of money and other appropriate documents (invoice, agreement, checks, etc.);
4. You are told that you will receive money from number of attracted participants, and not from the turnover of the structure.
5. The main point in the organization’s work is the emphasis on make money quickly, and the product is needed only as a cover in the activities of the pyramid.

Therefore, friends, if you have expressed a desire to build your business with one of the network marketing companies, then we will be only happy for you, since this is a good school of business and personal development.

At the same time, remember the five basic rules given above. They will help you avoid financial losses and not be disappointed in the direct selling industry.

Friends, let’s say you’re lucky, you found a good company and began to cooperate with it. What if you have already invested your funds in a dubious project and realized that you are in a financial pyramid? How to behave and what steps to take? Read about it below.

5. What to do if you have already fallen into the network of a financial pyramid?

The most important– don’t panic! Once again, make sure that this company is a financial pyramid. Refer to the above.

“Ponzi scheme” is the most common name for a financial pyramid, which was named after a real person. In 1920, Charles Ponzi created a scheme that allowed him to deprive thousands of people of their hard-earned savings.

Who is Charles Ponzi?

An Italian immigrant born in Lugo in 1882, Charles arrived in America virtually bankrupt in 1903. For the next 15 years he worked as a laborer and even went to prison for theft and counterfeiting. In 1919, the charismatic Italian set up a business in Boston offering investors the exchange of postal coupons and other securities. To attract investors, Ponzi issued promissory notes in which his company pledged to pay 50% of profits within 90 days. Unable to cope with the financial burden, Ponzi began to pay out the promised profits from the investments of new investors. After a preliminary journalistic investigation, the company's accounts were frozen, and the scheme collapsed in 1920. The founder of the financial pyramid was arrested and later deported to Italy.

Despite the fact that the financial pyramid is called a “Ponzi scheme,” the Italian was not the only or even the first founder. In 1899 in New York, William Miller received money from investors in the amount of a million dollars, promising them an incredible return exceeding 500%.

What is a financial pyramid?

The “Ponzi scheme” works according to the rule “steal from Vanya to pay Petya.” In every financial pyramid, the first investors receive the promised income through subsequent financial investments. As a rule, the source of income is disguised as a commercial or investment activity. One of the most notorious pyramid schemes is that of Wall Street financier Bernard Madoff, who masterminded the largest scam in history, costing investors $65 billion.

In 1994, after the collapse of the Soviet Union, our television screens were filled with advertisements about Lena Golubkov. Short videos talked about how easily and simply you can increase your savings. This large-scale investment project is widely famous name"MMM" ended with the global collapse of the hopes of millions of people. And its organizer Sergei Mavrodi explained the success of this project by human greed and thirst for easy money.
It was a long time ago, in the dashing 90s. Now, of course, the time is different. But various financial frauds are growing by leaps and bounds.

If you have not yet had a chance to watch TV sketches about Lena Golubkov, you are welcome:

Unfortunately, at the moment, the laws of our country are not able to protect its citizens from the activities of such financial adventurers. Therefore, everyone who may encounter an invitation to fraudulent schemes to earn money (and as practice has shown, this can be absolutely anyone), you need to be aware of what a financial pyramid is, how it works, what are its signs, and what to do when you are invited to dubious projects.

The essence of a financial pyramid

A financial pyramid is a special way of getting money out of thin air for its organizers and the “lucky ones” who entered the front row.

That is why the main characteristic feature of a financial pyramid is the way to generate income is not from the sale of goods or services, but from the influx of new participants.

Even despite the presence of some kind of trade turnover in some pyramid schemes, profits are made precisely due to new people invited to this project.

This basic characteristic must be remembered once and for all. No matter what sauce the company’s activities are presented under, in most cases they will still explain to you that for each invitee you receive a certain amount of money.

Or they won't explain. Because a financial pyramid can mimic some “exclusive” and “brilliant” investment project. But the essence is still the same: you can receive money only through the influx of new depositors (or investors).

The contributions that new participants bring to the pyramid are distributed between the organizers and previous participants. The pyramid lives and thrives due to the constant arrival of newcomers, and when this flow weakens and then stops altogether, the financial pyramid collapses. Accordingly, those who came at this time are out of luck - they will no longer be able to return the money.

But, let's look at everything in order.

What does a financial pyramid look like?

It just so happens that in the 21st century there are more and more variations of financial pyramids. The essence of her work remains the same, but masks are being invented more and more sophisticated. Typically, pyramid schemes can call themselves investment projects, social funds (which may be closely related to charity), network companies (which, of course, they are not), credit organizations, and so on.

For clarity, we present a diagram of a simple, classic financial pyramid:

Stage 1. The organizer invites the first 4 participants to invest $100, promising that for each newcomer they bring, they will receive $25.

Organizer's profit: 100*4= 400 dollars

Expenses: $0

Stage 2. Each of the 4 participants brings 4 people, who in turn invest 100 dollars and will also receive 25 for each newcomer.

Total income of the organizer: 4*4*100+400 = 1600+400= 2 000 dollars

Expenses : 4*4*25=400 dollars.

Net profit: 2000-400= 1 600 dollars

Stage 3. Each of the 16 participants who entered the project at stage 2 brings 4 newcomers.

Total income of the organizer: 16*4*100+400 = 6400+1600+400 = 8 400 dollars.

Expenses = 16*4*25 = 1600+400= 2 000 dollars

Net profit: 6 400 dollars.

And so on…
Thus, than more people enters the pyramid and brings new investors, the higher the profit of the organizers. But the faster it will collapse, because the number of people who can join it is Certainly.

As soon as the influx of new investors stops, the cash flow dries up. The organizers usually disappear at this stage. And the last investors are left with nothing.

But, let us repeat once again - in our time, “variations on a theme” are growing like mushrooms after rain. And the global Internet, which has become accessible to everyone, plays one of the leading roles in this growth. Therefore, in order to avoid becoming victims of enterprising and creative swindlers, we suggest that you familiarize yourself with the list of the main types of financial pyramids.

Types of financial pyramids

Financial pyramids can be single-level And multi-level.

Single-level Pyramids are essentially simple - investors simply bring money for a high interest rate or fixed payments, which are paid out of the money of subsequent investors. The notorious “MMM” was designed according to this type.

Multi-level pyramids use complicated schemes, for example, they impose the obligation to invite several more people in order to make a profit.
Now let's move on to the varieties.

1. Classic type of financial pyramids

We looked at this type of financial pyramid in our previous example. Investors bring money and receive their income from new arrivals. As they say, the scheme is as old as time, everything is simple and clear. However, such schemes still exist, which means people voluntarily participate in such events.

1. Mutual assistance funds, “social and financial” projects, etc.

This is one of the most insidious types of financial pyramids, because... the creators cleverly disguise the essence of such organizations. Usually they come up with some idea, often under the guise of good intentions. They also use charitable activities for greater persuasiveness. They talk about their very complex, ingenious, beneficial for all ways of distributing income between participants. They conduct an excellent advertising campaign and are beautifully designed on the Internet. But the point is still the same - money is made out of thin air, there is no product, and as soon as the flow of new participants weakens, the project falls apart.

1. Investment financial pyramids

Such pyramids, as a rule, do not promise quick payback. Their organizers talk, for example, about unique technologies or phenomenal and original investment projects that promise to be super profitable, but in the future. Such companies can have it all necessary documents, they will be registered with the necessary government authorities. But after some time, the organizers of “highly liquid” unique projects disappear from the sight of their investors, leaving them with unpleasant memories and useful life experience.

If venture funds and private investors are not interested in this “highly profitable” enterprise, and the organizers have to tell ordinary people far from investing about the enormous benefits of the project... Then 99.99%, that this is a financial pyramid.

1. Financial pyramid disguised as network marketing

This type of financial pyramid, perhaps, can be given first place in terms of its danger and insidiousness. The fact is that network marketing (or MLM marketing) is a completely legal and transparent working tool for doing business. But with its multi-level scheme, it is somewhat similar to the principle of financial pyramids.
However, these two financial instruments have one significant difference:

in MLM there is always a product (product, or services) that is directly involved in making your profit - your income depends on the revenue for this product or services.

But in a financial pyramid there is either no product at all, or it is added to the scheme as a distraction. For example:

• Goods and services that are several times cheaper in market conditions
• Goods and services that are not in demand among consumers and do not have their own value

Most likely, there will be a large contribution in such pyramids. It is very likely that in return you will receive some goods of dubious quality and purpose, and perhaps legal support, which, at best, you will need only once during the entire paid period. And they will almost certainly tell you that your main responsibility is not to sell the product, but to attract new members of this closed club, because These exclusive services and goods can only be used by those who have joined this pyramid.

Additionally, I would like to note that these types of financial pyramids have adopted elements of corporate culture network companies. Various self-development trainings are used in the work, “free” training is provided for club members, mentoring and patronage are used, seminars and parties are held. At first glance, all this looks very tempting to the uninitiated layman. That's why people are often fooled. They borrow money and at first fly on the wings of new impressions, information and acquaintances. But then for the majority there comes a great disappointment and farewell to their invested hard-earned money.

How to calculate a financial pyramid

So, we have smoothly arrived at one of the most important sections of this article.

A good friend called you and with genuine delight tells you about a great opportunity to get rid of the oppression of your employer, become a financially independent person, stop working for your uncle, put together your own team, become a successful and talented leader and, subsequently, live for your own pleasure, receiving a decent passive income.

Or maybe you were simply offered to participate in a good project that can help the whole world become a better place. To give you the opportunity to do good, receiving a reward for it, thanks to the ingenious win-win schemes of the organizers of this project.

How to understand these intricacies and not fall into the trap of financial fraudsters?

First, study in detail the signs of a financial pyramid.

Signs of a financial pyramid

1. Promises of high profitability and quick payback

The very first sign of a financial pyramid is its high income, which is unusual for the level of the population. If in percentage terms, then it is certainly higher than bank interest. This is strange to say the least. And if, along with a high income, you are guaranteed to break even, which, in fact, is economically impossible, then this is most likely a pyramid.
The promise of quick payback should also alert you. Imagine how many competent financial investors and large businessmen there are in our country. Why are they still puzzling over how to optimize their business and what niche is worth investing in additionally? Wouldn't it be easier for them to invest part of their money in such a highly profitable financial instrument?

The question is, of course, rhetorical.

1. Large amount to enter

This feature is not mandatory, but very often accompanies pyramidal schemes. They tell you that you are obligated to invest a significant amount of money, and they present arguments that seem weighty at first glance.

1. Your task is to involve your friends in this project

• If one of your main tasks is to conduct a large-scale advertising campaign among your friends and relatives...
• If they reassure you that they will teach you special techniques, psychological tools for effective job recruitment...
• If your questions about the moral component answer you that there is no need to worry - after all, this is how you take care of your loved ones, helping them find success and financial independence...

It's better to leave there right away.

1. Unique unprecedented technologies (know-how)

Yes, these are exactly the technologies, exclusive, dizzying, highly profitable projects that turned out to be unfairly undervalued by large investors.

1. Passive, very passive income

• If you are promised maximum results for minimum effort...
• If you are told that you will be financially independent without doing anything...
• Or they warn that only at first you will have to work a little - invite the required number of people to the project and help them bring their own...

Remember the saying about free cheese in a mousetrap.

1. Lack of registration and permitting documentation

Many financial pyramids will not have the necessary licenses and permits; they may not even be registered with the tax authorities. Be sure to request an extract from the Unified State Register of Legal Entities, ask if there is a head office, and if this company is really located there. But, again - if all required documentation formatted properly, this does not guarantee the purity of the intentions of this project.

1. Veiled financial transactions

Usually, financial pyramids carefully try to hide their financial schemes. Where and how the money is distributed to investors is unknown. Documents are not prepared or provided. If you encounter this, be alert.

If you have already fallen for the bait...

Firstly, calm down, don't make a fuss.

Secondly, demand a full return of the invested money, as they say, “in an amicable way.” Be persistent and calm. First, you can study your rights and memorize the article of the Criminal Code of the Russian Federation on fraud. When a person is legally savvy, it is more difficult to manipulate him.

Thirdly, if necessary, contact law enforcement agencies.

And finally...

If you think that at the beginning of the project’s existence you can make money, we will tell you: “Yes, you can.” But think about it: by knowingly participating in such fraud, aren’t you becoming an accomplice? After all, anyone, including someone close to you, could end up at the unfortunate end of the pyramid. And even you, if you had been invited, for example, a year earlier.

Remember that balance in the world is always restored, and your thirst for quick enrichment at the expense of others will certainly return to you.

Be attentive to all monetary events; whoever owns the information owns the world.