Gov't Warns Public about Websites Running 'Ponzi Schemes'

(Beijing) – China's government has warned the public that a Russia-based investment website and others like it are illegal because they are running what appear to be pyramid schemes.

The Chinese arm of MMM, which was founded by a Russian ex-con named Sergei Mavrodi, presents huge risks to investors because it is operating illegally in the country and may have funneled funds abroad, according to an announcement on January 18 from the central government.