Breaking: Founder of MMM Ponzi Scheme Company Sergei Mavrodi Dies In Moscow

The 62-year-old founder of the main financial pyramid of the 1990s, Sergei Mavrodi, died in Moscow hospital, Moskovsky Komsomolets reported.

Reports said the 62-year-old was rushed to the hospital late on March 25 with pain in his chest and died several hours later.

According to the preliminary version, the cause of the death of the businessman known for his frauds is a heart attack.

According to the edition, on the night of March 25 Mavrodi was hospitalized from a bus stop located at Polikarpova Street. An ambulance was called by an accidental passer-by after Mavrodi complained of weakness and pain in his heart. After the arrival of the doctors Mavrodi was hospitalized in the city hospital No 67. The doctors could not save him, so he died this morning.

Mavrodi's MMM financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors. Mavrodi promised returns of 20 percent to 75 percent a month, as well as lotteries and bonuses for investors.

As soon as the number of new clients stopped growing, the pyramid collapsed, causing huge financial losses for at least 10 million people, in some cases leaving them destitute.

In 1994, Mavrodi was elected as a lawmaker, a decision he later said was to ensure he received immunity from prosecution. In 1996, he lost his parliamentary mandate.

In 2007, a Moscow court found him guilty of financial fraud and sentenced him to 4 1/2 years in a penal colony.

In 2011, Mavrodi launched another pyramid scheme called MMM-2011, calling on investors to purchase so-called Mavro currency units in a bid to get rid of the "unfair" financial system. Some 15 months later, Mavrodi halted the project.

From 2011-16, Mavrodi launched Ponzi schemes under the MMM brand in India, China, South Africa, Zimbabwe, and Nigeria.

In many of those countries, Mavrodi's operations were subsequently shut down or suspended.