MMM: THE FOOL AND HIS MONEY ARE PARTED -BY YINKA ODUMAKIN

THOSE who were in Lagos around 1991-2 would remember Forum Finance located on Allen Avenue in Ikeja,a company that employed a number of young men and women in flashy cars going about town duping the gullible of their hard earned money .Its famous advert was “Forum go double your money!”. It paid outrageous returns to its earlier investors and this made many fools to part with their money . By the time the bubble burst,it was sorrow and tears for thousands of unwary who lost their fortunes to the Ponzi scheme .

Ponzi schemes are named after Charles Ponzi, an Italian immigrant who perpetrated a legendary scam. Actually, he wasn’t the inventor of this type of scams – it was called “Robbing Peter to pay Paul” schemes – but his was so large that his name became synonymous with it.

Ponzi started a business buying and selling a type of postal coupon and promised investors a 50% return on their money within 45 days (compare this to an annual 5% interest for bank savings account at the time).

Money from investors

Ponzi’s early investors did get their money doubled and even tripled in a short amount of time. This, and glowing newspaper reports at the time about his company, the Securities Exchange Company got him a lot of money from investors. At one point, Ponzi took in $1 million in a three-hour period from investors. All in all, about 40,000 investors invested about $15 million in Ponzi’s scheme in nine months between 1919 and 1920 (about $184 million in 2017 value).

Failed Scheme: When it was discovered that Ponzi was paying old investors with money from new ones, his scheme collapsed and he was sent to jail … for five years! After serving his federal sentence, Ponzi was sentenced by the State of Massachusetts for an additional nine years, but he skipped town. Ponzi ended up in Brazil, where he spent his last years in poverty and sickness.

Before he died, Ponzi gave one last interview where he confessed to his crime. “My business is simple. It was the old game of robbing Peter to pay Paul. You would give me one hundred dollars and I would give you a note to pay you one-hundred-and-fifty dollars in three months. Usually I would redeem my note in 45 days. My notes became more valuable than American money … Then came trouble. The whole thing was broken.” (Zuckoff, Mitchell, Ponzi’s Scheme: The True Story of a Financial Legend, p. 313)

Early Ponzi schemes: In the 1980s in San Diego, California, J. David & Company, a purported currency and commodity trading and investing operation named after its founder, J. David Dominelli, a withdrawn and shy currency and commodity trader, was revealed to be a Ponzi scheme which took in $200 million and returned $120 million to investors, leaving a net loss of $80 million. The scheme touched all levels of upper class business and professional life in San Diego and environs. One of those most closely involved was Nancy Hoover, the mayor of Del Mar, California, a cozy upscale beach town just north of La Jolla. Hoover was J. David’s assistant and live-in companion at the time. Also involved was the prominent New York law firm Rogers & Wells (now Clifford Chance), which had advised J. David (through a rogue partner) and others. When the fall came, J. David briefly escaped to Montserrat in the Caribbean, but was returned ultimately to plead guilty to federal charges and was sentenced to 20 years imprisonment,serving 10 before being paroled.

You should not have forgotten now that financier Bernard “Bernie” Madoff was arrested for running a Ponzi scheme. There are four notable facts about his operation: It was the largest (dollar-wise)

It was the longest-running (known) Ponzi scheme in history. Investigators sifting through the record found evidence of hanky panky since the 1970s. It was perpetrated by one of the pillars of Wall Street – Madoff was a former chairman of NASDAQ

His victims are some of the most financially savvy and rich people in the world (you need at least $20 million to “invest” with him). His website used to say before it was taken over by authorities: In an era of faceless organizations owned by other equally faceless organizations, Bernard L. Madoff Investment Securities LLC harks back to an earlier era in the financial world: The owner’s name is on the door.

Clients know that Bernard Madoff has a personal interest in maintaining the unblemished record of value, fair-dealing, and high ethical standards that has always been the firm’s hallmark.

There was also Biletov or fractions of shares of the MMM Corp, bearing the likeness of Sergey Mavrodi. Just one million people? Meh, said Sergey Mavrodi. His scheme duped two million people!

The Mavrodi scheme: Mavrodi was a Russian scammer who along with his brother Vyacheslav Mavrodi and Vyacheslav’s future wife Marina Murayveya, founded the MMM company in (the triple Ms came from the surnames of these three people). In the early 1990s, MMM promised dividends of 1,000%, promoted itself heavily in TV ads, and delivered on its promise. At its peak, Mavrodi’s company was taking in more than $11 million a day from the public! Within five years, Mavrodi took in $1.5 billion from at least two million people.

When the whole thing unraveled and the police raided MMM offices for tax evasion, Mavrodi pulled another fast one: he convinced his “investors” that it was the government’s fault that they lost their investment. He even ran for the Russian State Duma (the lower house of parliament) to get the government to initiate a “payback” programme … and he was elected! That was a good thing because he got himself a parliamentary immunity.

When his immunity was later revoked, Mavrodi went on the lam. In 2003, he was arrested , fined $390, and sent to a penal colony for four-and-a-half years. That translates to about $38,052 swindled per hour in the slammer. MMM surfaced in Nigeria in 2016 with a promise on 30 per cent return on any money into the scheme in 30days!

House of Reps intervention

The House of Representatives did one good in its life by warning people against this scam. It asked the Economic and Financial Crimes Commission, EFCC, and the Central Bank, CBN, of Nigeria to immediately go after the promoters Mavrodi Mondial Moneybox, otherwise known as ‘MMM’ in Nigeria.

Lawmakers strongly opposed the investment scheme, which lately gained popularity among Nigerians in the wake of the current economic recession in the country. The Chairman, House Committee on Telecommunications, Mr. Saheed Fijabi, had in a motion, drawn the attention of the House to the growing popularity of the scheme among Nigerians.

“The scheme entered the Nigerian circle in 2016, capitalising on the high level of unemployment and poverty to deceive unwary Nigerians into falling prey to their antics”, Fijabi stated. He added that the fact that MMM was not regulated by law or approved by the CBN as a secure business venture, made Nigerians more vulnerable.

Nobody did anything. By December 2016 when the company froze the accounts of its 3m “muguns’ it had raked billions of Naira unhindered .

The level of our ethical collapse was seen with images of worship places that should teach the right values about wealth creation organizing Ponzi seminars for MMM in their auditoria.How low can it get for a country .

Our security agents who were raiding Bureau De Change operators months ago are not yet on record to have gone after the MMM operators who are not known to gave been licensed by the CBN to carry out any financial operations in Nigeria. Is there a government here ?

My heart sank when I saw Nigerians in their hundreds dancing and holding a vigil on the eve of the January 14 promise by the Ponzi schemers to start another round of duping session. My conclusion was that these people are irretrievably damaged psychologically and it would take a major shock in the system to get them to reason like normal cognitive human beings on this side of eternity.

Is it their fault totally ? No,I think the wayward Nigerian system which places emphasis on “sharing” has turned them into playthings in the hands of scammer because of expectations of free money in the order of our allocation mentality .

Source: MMM: The fool and his money are parted – Vanguard News

10 IMPORTANT INTERVIEW QUESTIONS AND ANSWERS DURING A RECESSION…2

CONTINUED FROM LAST POST

Question 6 The “Silent Treatment”

TRAPS: Beware – if you are unprepared for this question, you will probably not handle it right and possibly blow the interview. Thank goodness most interviewers don’t employ it. It’s normally used by those determined to see how you respond under stress. Here’s how it works:
You answer an interviewer’s question and then, instead of asking another, he just stares at you in a deafening silence.
You wait, growing a bit uneasy, and there he sits, silent as Mt. Rushmore, as if he doesn’t believe what you’ve just said, or perhaps making you feel that you’ve unwittingly violated some cardinal rule of interview etiquette.
When you get this silent treatment after answering a particularly difficult question , such as “tell me about your weaknesses”, its intimidating effect can be most disquieting, even to polished job hunters.
Most unprepared candidates rush in to fill the void of silence, viewing prolonged, uncomfortable silences as an invitation to clear up the previous answer which has obviously caused some problem. And that’s what they do – ramble on, sputtering more and more information, sometimes irrelevant and often damaging, because they are suddenly playing the role of someone who’s goofed and is now trying to recoup. But since the candidate doesn’t know where or how he goofed, he just keeps talking, showing how flustered and confused he is by the interviewer’s unmovable silence.
BEST ANSWER: Like a primitive tribal mask, the Silent Treatment loses all it power to frighten you once you refuse to be intimidated. If your interviewer pulls it, keep quiet yourself for a while and then ask, with sincere politeness and not a trace of sarcasm, “Is there anything else I can fill in on that point?” That’s all there is to it.
Whatever you do, don’t let the Silent Treatment intimidate you into talking a blue streak, because you could easily talk yourself out of the position.

Question 7 Why should I hire you?

TRAPS: Believe it or not, this is a killer question because so many candidates are unprepared for it. If you stammer or adlib you’ve blown it.
BEST ANSWER: By now you can see how critical it is to apply the overall strategy of uncovering the employer’s needs before you answer questions. If you know the employer’s greatest needs and desires, this question will give you a big leg up over other candidates because you will give him better reasons for hiring you than anyone else is likely to…reasons tied directly to his needs.
Whether your interviewer asks you this question explicitly or not, this is the most important question of your interview because he must answer this question favorably in is own mind before you will be hired. So help him out! Walk through each of the

position’s requirements as you understand them, and follow each with a reason why you meet that requirement so well.
Example: “As I understand your needs, you are first and foremost looking for someone who can manage the sales and marketing of your book publishing division. As you’ve said you need someone with a strong background in trade book sales. This is where I’ve spent almost all of my career, so I’ve chalked up 18 years of experience exactly in this area. I believe that I know the right contacts, methods, principles, and successful management techniques as well as any person can in our industry.”
“You also need someone who can expand your book distribution channels. In my prior post, my innovative promotional ideas doubled, then tripled, the number of outlets selling our books. I’m confident I can do the same for you.”
“You need someone to give a new shot in the arm to your mail order sales, someone who knows how to sell in space and direct mail media. Here, too, I believe I have exactly the experience you need. In the last five years, I’ve increased our mail order book sales from $600,000 to $2,800,000, and now we’re the country’s second leading marketer of scientific and medical books by mail.” Etc., etc., etc.,
Every one of these selling “couplets” (his need matched by your qualifications) is a touchdown that runs up your score. IT is your best opportunity to outsell your competition.

Question 8 Aren’t you overqualified for this position?

TRAPS: The employer may be concerned that you’ll grow dissatisfied and leave.
BEST ANSWER: As with any objection, don’t view this as a sign of imminent defeat. It’s an invitation to teach the interviewer a new way to think about this situation, seeing advantages instead of drawbacks.
Example: “I recognize the job market for what it is – a marketplace. Like any marketplace, it’s subject to the laws of supply and demand. So ‘overqualified’ can be a relative term, depending on how tight the job market is. And right now, it’s very tight. I understand and accept that.”
“I also believe that there could be very positive benefits for both of us in this match.”
“Because of my unusually strong experience in ________________ , I could start to contribute right away, perhaps much faster than someone who’d have to be brought along more slowly.”
“There’s also the value of all the training and years of experience that other companies have invested tens of thousands of dollars to give me. You’d be getting all the value of that without having to pay an extra dime for it. With someone who has yet to acquire that experience, he’d have to gain it on your nickel.”
“I could also help you in many things they don’t teach at the Harvard Business School. For example…(how to hire, train, motivate, etc.) When it comes to knowing how to work well with people and getting the most out of them, there’s just no substitute for what you learn over many years of front-line experience. You company would gain all this, too.”
“From my side, there are strong benefits, as well. Right now, I am unemployed. I want to work, very much, and the position you have here is exactly what I love to do and am best at. I’ll be happy doing this work and that’s what matters most to me, a lot more that money or title.”
“Most important, I’m looking to make a long term commitment in my career now. I’ve had enough of job-hunting and want a permanent spot at this point in my career. I also know that if I perform this job with excellence, other opportunities cannot help but open up for me right here. In time, I’ll find many other ways to help this company and in so doing, help myself. I really am looking to make a long-term commitment.”
NOTE: The main concern behind the “overqualified” question is that you will leave your new employer as soon as something better comes your way. Anything you can say to demonstrate the sincerity of your commitment to the employer and reassure him that you’re looking to stay for the long-term will help you overcome this objection.

Question 9 Where do you see yourself five years from now?

TRAPS: One reason interviewers ask this question is to see if you’re settling for this position, using it merely as a stopover until something better comes along. Or they could be trying to gauge your level of ambition.
If you’re too specific, i.e., naming the promotions you someday hope to win, you’ll sound presumptuous. If you’re too vague, you’ll seem rudderless.
BEST ANSWER: Reassure your interviewer that you’re looking to make a long-term commitment…that this position entails exactly what you’re looking to do and what you do extremely well. As for your future, you believe that if you perform each job at hand with excellence, future opportunities will take care of themselves.
Example: “I am definitely interested in making a long-term commitment to my next position. Judging by what you’ve told me about this position, it’s exactly what I’m looking for and what I am very well qualified to do. In terms of my future career path, I’m confident that if I do my work with excellence, opportunities will inevitable open up for me. It’s always been that way in my career, and I’m confident I’ll have similar opportunities here.”

Question 10 Describe your ideal company, location and job.

TRAPS: This is often asked by an experienced interviewer who thinks you may be overqualified, but knows better than to show his hand by posing his objection directly. So he’ll use this question instead, which often gets a candidate to reveal that, indeed, he or she is looking for something other than the position at hand.
BEST ANSWER: The only right answer is to describe what this company is offering, being sure to make your answer believable with specific reasons, stated with sincerity, why each quality represented by this opportunity is attractive to you.
Remember that if you’re coming from a company that’s the leader in its field or from a glamorous or much admired company, industry, city or position, your interviewer and his company may well have an “Avis” complex. That is, they may feel a bit defensive about being “second best” to the place you’re coming from, worried that you may consider them bush league.
This anxiety could well be there even though you’ve done nothing to inspire it. You must go out of your way to assuage such anxiety, even if it’s not expressed, by putting their virtues high on the list of exactly what you’re looking for, providing credible reason for wanting these qualities.
If you do not express genuine enthusiasm for the firm, its culture, location, industry, etc., you may fail to answer this “Avis” complex objection and, as a result, leave the interviewer suspecting that a hot shot like you, coming from a Fortune 500 company in New York, just wouldn’t be happy at an unknown manufacturer based in Topeka, Kansas.

10 IMPORTANT INTERVIEW QUESTIONS AND ANSWERS DURING A RECESSION…1

Question 1 Tell me about yourself.

TRAPS: Beware, about 80% of all interviews begin with this “innocent” question. Many candidates, unprepared for the question, skewer themselves by rambling, recapping their life story, delving into ancient work history or personal matters.
BEST ANSWER: Start with the present and tell why you are well qualified for the position. Remember that the key to all successful interviewing is to match your qualifications to what the interviewer is looking for. In other words you must sell what the buyer is buying. This is the single most important strategy in job hunting.
So, before you answer this or any question it’s imperative that you try to uncover your interviewer’s greatest need, want, problem or goal.
To do so, make you take these two steps:
1. Do all the homework you can before the interview to uncover this person’s wants and needs (not the generalized needs of the industry or company)
2. As early as you can in the interview, ask for a more complete description of what the position entails. You might say: “I have a number of accomplishments I’d like to tell you about, but I want to make the best use of our time together and talk directly to your needs. To help me do, that, could you tell me more about the most important priorities of this position? All I know is what I (heard from the recruiter, read in the classified ad, etc.)”
Then, ALWAYS follow-up with a second and possibly, third question, to draw out his needs even more. Surprisingly, it’s usually this second or third question that unearths what the interviewer is most looking for.
You might ask simply, “And in addition to that?…” or, “Is there anything else you see as essential to success in this position?:
This process will not feel easy or natural at first, because it is easier simply to answer questions, but only if you uncover the employer’s wants and needs will your answers make the most sense. Practice asking these key questions before giving your answers, the process will feel more natural and you will be light years ahead of the other job candidates you’re competing with.
After uncovering what the employer is looking for, describe why the needs of this job bear striking parallels to tasks you’ve succeeded at before. Be sure to illustrate with specific examples of your responsibilities and especially your achievements, all of which are geared to present yourself as a perfect match for the needs he has just described.

Question 2 What are your greatest strengths?

TRAPS: This question seems like a softball lob, but be prepared. You don’t want to come across as egotistical or arrogant. Neither is this a time to be humble.
BEST ANSWER: You know that your key strategy is to first uncover your interviewer’s greatest wants and needs before you answer questions. And from Question 1, you know how to do this.
Prior to any interview, you should have a list mentally prepared of your greatest strengths. You should also have, a specific example or two, which illustrates each strength, an example chosen from your most recent and most impressive achievements.
You should, have this list of your greatest strengths and corresponding examples from your achievements so well committed to memory that you can recite them cold after being shaken awake at 2:30AM.
Then, once you uncover your interviewer’s greatest wants and needs, you can choose those achievements from your list that best match up.
As a general guideline, the 10 most desirable traits that all employers love to see in their employees are:
1. A proven track record as an achiever…especially if your achievements match up with the employer’s greatest wants and needs.
2. Intelligence…management “savvy”.
3. Honesty…integrity…a decent human being.
4. Good fit with corporate culture…someone to feel comfortable with…a team player who meshes well with interviewer’s team.
5. Likeability…positive attitude…sense of humor.
6. Good communication skills.
7. Dedication…willingness to walk the extra mile to achieve excellence.
8. Definiteness of purpose…clear goals.
9. Enthusiasm…high level of motivation.
10. Confident…healthy…a leader.

Question 3 What are your greatest weaknesses?

TRAPS: Beware – this is an eliminator question, designed to shorten the candidate list. Any admission of a weakness or fault will earn you an “A” for honesty, but an “F” for the interview.
PASSABLE ANSWER: Disguise a strength as a weakness.
Example: “I sometimes push my people too hard. I like to work with a sense of urgency and everyone is not always on the same wavelength.”
Drawback: This strategy is better than admitting a flaw, but it’s so widely used, it is transparent to any experienced interviewer.
BEST ANSWER: (and another reason it’s so important to get a thorough description of your interviewer’s needs before you answer questions): Assure the interviewer that you can think of nothing that would stand in the way of your performing in this position with excellence. Then, quickly review you strongest qualifications.
Example: “Nobody’s perfect, but based on what you’ve told me about this position, I believe I’ d make an outstanding match. I know that when I hire people, I look for two things most of all. Do they have the qualifications to do the job well, and the motivation to do it well? Everything in my background shows I have both the qualifications and a strong desire to achieve excellence in whatever I take on. So I can say in all honesty that I see nothing that would cause you even a small concern about my ability or my strong desire to perform this job with excellence.”
Alternate strategy (if you don’t yet know enough about the position to talk about such a perfect fit): Instead of confessing a weakness, describe what you like most and like least, making sure that what you like most matches up with the most important qualification for success in the position, and what you like least is not essential.
Example: Let’s say you’re applying for a teaching position. “If given a choice, I like to spend as much time as possible in front of my prospects selling, as opposed to shuffling paperwork back at the office. Of course, I long ago learned the importance of filing paperwork properly, and I do it conscientiously. But what I really love to do is sell (if your interviewer were a sales manager, this should be music to his ears.)

Question 4 Tell me about something you did – or failed to do – that you now feel a little ashamed of.

TRAPS: There are some questions your interviewer has no business asking, and this is one. But while you may feel like answering, “none of your business,” naturally you can’t. Some interviewers ask this question on the chance you admit to something, but if not, at least they’ll see how you think on your feet.
Some unprepared candidates, flustered by this question, unburden themselves of guilt from their personal life or career, perhaps expressing regrets regarding a parent, spouse, child, etc. All such answers can be disastrous.
BEST ANSWER: As with faults and weaknesses, never confess a regret. But don’t seem as if you’re stonewalling either.
Best strategy: Say you harbor no regrets, then add a principle or habit you practice regularly for healthy human relations.
Example: Pause for reflection, as if the question never occurred to you. Then say, “You know, I really can’t think of anything.” (Pause again, then add): “I would add that as a general management principle, I’ve found that the best way to avoid regrets is to avoid causing them in the first place. I practice one habit that helps me a great deal in this regard. At the end of each day, I mentally review the day’s events and conversations to take a second look at the people and developments I’m involved with and do a doublecheck of what they’re likely to be feeling. Sometimes I’ll see things that do need more follow-up, whether a pat on the back, or maybe a five minute chat in someone’s office to make sure we’re clear on things…whatever.”
“I also like to make each person feel like a member of an elite team, like the Boston Celtics or LA Lakers in their prime. I’ve found that if you let each team member know you expect excellence in their performance…if you work hard to set an example yourself…and if you let people know you appreciate and respect their feelings, you wind up with a highly motivated group, a team that’s having fun at work because they’re striving for excellence rather than brooding over slights or regrets.”

Question 5 Why are you leaving (or did you leave) this position?

TRAPS: Never badmouth your previous industry, company, board, boss, staff, employees or customers. This rule is inviolable: never be negative. Any mud you hurl will only soil your suit.
Especially avoid words like “personality clash”, “didn’t get along”, or others which cast a shadow on your competence, integrity, or temperament.
BEST ANSWER:
(If you have a job presently) If you’re not yet 100% committed to leaving your present post, don’t be afraid to say so. Since you have a job, you are in a stronger position than someone who does not. But don’t be coy either. State honestly what you’d be hoping to find in a new spot. Of course, as stated often before, you answer will all the stronger if you have already uncovered what this position is all about and you match your desires to it.
(If you do not presently have a job.) Never lie about having been fired. It’s unethical – and too easily checked. But do try to deflect the reason from you personally. If your firing was the result of a takeover, merger, division wide layoff, etc., so much the better.
But you should also do something totally unnatural that will demonstrate consummate professionalism. Even if it hurts , describe your own firing – candidly, succinctly and without a trace of bitterness – from the company’s point-of-view, indicating that you could understand why it happened and you might have made the same decision yourself.
Your stature will rise immensely and, most important of all, you will show you are healed from the wounds inflicted by the firing. You will enhance your image as first-class management material and stand head and shoulders above the legions of firing victims who, at the slightest provocation, zip open their shirts to expose their battle scars and decry the unfairness of it all.
For all prior positions: Make sure you’ve prepared a brief reason for leaving. Best reasons: more money, opportunity, responsibility or growth.

TO BE CONTINUED