Countless schemes exist to lose accumulated funds. Scammers know them all too well. Today, we might laugh at Lenya Golubkov, but there was a time when millions believed in the dream of getting rich quickly. What did it lead to? Read on in our TOP financial pyramids.
1 MMM – Exact amount unknown
That’s right—no one knows how many people suffered due to Sergey Mavrodi’s actions. No proper records were kept (estimates range from 2 to 15 million victims, but the truth is likely somewhere in between). This financial pyramid is considered the largest ever and the most devastating for investors. Those who fell for easy money included not only ordinary people unfamiliar with financial literacy but also pop stars and politicians. The latter delayed MMM’s collapse for as long as possible, even bypassing rules to make its owner a deputy, granting him parliamentary immunity. The pyramid lasted a total of 8 years, until 1997. After Mavrodi’s release from prison, similar activities resumed, with MMM offices operating in Africa, Japan, the U.S., and China until 2017.
2 Bernard L. Madoff Investment Securities LLC – $64.8 billion
Unlike Sergey Mavrodi, Bernard Madoff was sentenced to 150 years in prison for his fraudulent financial reporting. The creator of one of history’s largest Ponzi schemes deceived at least 3 million people who entrusted him with their savings. People justified their trust—how could they not believe a “pillar” of Wall Street, the co-founder of NASDAQ, and one of New York’s biggest stock market players? However, 2008 opened many eyes. The company’s financial records turned out to be fake, and the pyramid collapsed.
3 Yilishen Tianxi Group – $2 billion
Would you be suspicious if someone promised you enormous profits with no effort? Mr. Wang, the owner of Yilishen Tianxi Group, didn’t just hand out money—he sold investors ant farms. Investors had to feed and care for the ants, then hand them over to the company each month. The crushed insects were later used to produce a natural Viagra-like supplement. Farm owners enjoyed massive returns—32.5%! By 2007, over a million Chinese farmers were involved, and the pills were sold in thousands of pharmacies. However, as with all schemes, it eventually failed when the company could no longer attract enough new “ant breeders” to sustain payouts.
4 European Kings Club – $1 billion
The name of this pyramid, which operated from 1992 to 1994, had a hypnotic effect on European citizens who were promised they could “live like royalty.” A 100% annual return encouraged people to part with their money quickly. Victims saw the prosecution of the scheme’s leaders as a vendetta by the banking system and continued to support them in court.
5 Double Shah – $880 million
In 2005, Pakistan fell into the hands of a crafty scammer, Syed Sibtul Shah, even though the golden age of Ponzi schemes had already ended. But people still wanted to believe in miracles! In just 18 months, Shah collected around $880 million from his fellow citizens. Even after his arrest, many of the deceived refused to believe in his guilt, organizing street protests in his defense.
6 AOZT “Russian House Selenga” – $519 million
The “Russian House” scheme swindled more than 2.5 million investors over two years during the chaotic 1990s. The scheme’s leaders were so confident in their invincibility that they didn’t even bother hiding their stolen wealth. In the end, investors recovered just 4% of their deposits, while the scheme’s organizers received nine-year prison sentences.
7 “Vlastilina” Company – $119 million
“Vlastilina” lured investors with material goods. Early participants received apartments and cars at half the market price. However, as time passed, deliveries were delayed more and more. About a year after its launch, the tax authorities took an interest in the scheme. The company’s organizers knew what they were doing from the start, kept no financial records, and the money disappeared without a trace…
8 WinCapita (WinClub, GiiClub) – $100 million
Everyone knows there are scammers online, yet people forget all caution when they see promises of big money. The creators of WinCapita took full advantage of this, launching their scam amid the global financial crisis. They offered investments in foreign currencies, but the entire operation was fraudulent from the start. Interestingly, its founder received just a five-year prison sentence.
9 ZZZZ Best Inc. – $100 million
For a similar amount, Barry Minkow in the U.S. was sentenced to 25 years in prison! His company attracted investors and sold shares that continued to rise in value—based on completely fabricated financial reports. Fake contracts, fake assets, stolen capital—after a year of operation, the once-rising company’s stock crashed to zero.
10 Securities Exchange Company – $20 million
Closing our list of financial pyramids is Charles Ponzi, the man who started it all. In 1920, he launched the first classic pyramid scheme, promising investors a 100% return in just three months. Ponzi managed to steal $20 million (equivalent to $222 million today). Since then, all such frauds have been known as “Ponzi schemes.”
