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MMCIS terminates on November 21, 2014

MMCIS


MMCIS, a brokerage company, was founded in 2007 and registered in the Seychelles as international commercial firm Tulikuda Consulting Limited. Later it was discovered that the Ukraine-based company operated as a Ponzi scheme.

Photo: MMCIS consulting office in Donetsk, Ukraine.

Originally, the company which claimed proudly to be a broker of the international recognition had its own offices neither in Ukraine nor abroad. The company posted photos of a hotel in Moscow on the official website. A fake person was introduced as a director. They posted photos of their team and one of them belonged to a kindergarten director from Siberia. When the company was keen to attract a wealthy client, they rented an office for an hour to negotiate. All questions were settled by telephone.

Founders and management of MMCIS Ponzi scheme

Photo: Konstantin Kondakov.

Interestingly, the person who was the most frequently referred to in the context of MMCIS is not the company’s president but an ordinary trader called Konstantin Kondakov. He was not mentioned in the company’s legal papers but was introduced as a trader. According to the legend, he mastered the art of trading on exchanges for a couple of years, absorbed trading algorithms, and became a leading trader with MMCIS. Kondakov traded transparently and allowed others to watch his work. As a result, he won enormous popularity. Afterward, Kondakov became an MMCIS analyst and entered a rating of MMCIS traders.

Photo: Alexander Volkov

Alexander Volkov, Kondakov’s buddy, owned quite a lot of domains with the MMCIS name. Besides, Volkov is a founder of several software development firms. One of them is Internet Global Technology which shares were inflated in value on Ukraine’s exchange. MMCIS called on people to invest in these securities.

Photo: Anton Savchenko.

Anton Savchenko is a founder of Konstantin Kondakov’s charity. The MMCIS trademark was registered in his name. He was also in charge of accepting money from investors. Moreover, he acted as director and chief accountant of Alexander Volkov’s charity and his own Anticorruption firm.

Dmitriy Cherniy is another co-founder of the MMCIS Ponzi scheme and MillTrade. The hosting provider which held MMCIS servers was registered in his name. Nowadays, he helps Kondakov embark on the IT market. Besides, Cherniy owns Epsy Soft in Ukraine.

Vitaliy Sotula also took part in Ponzi schemes. He acted on behalf of MMCIS in trials. Vitaliy Sotula established LEONIS, a law firm in Kyiv. He is also a director of IT Outsourcing, a Ukraine-based company and an acting director of Anticorruption non-commercial organization.

Dmitriy Garkusha is a co-founder of the Ponzi scheme. When the project had just started, MMCIS in Ukraine was registered in his name.

Yuliya Barabash acted as an executive director of MMCIS in Ukraine and CEO of Forex MMCIS Group.

Anastasiya Teplygina was a development director of MMCIS in Russia.

Anatoliy Kashkin was put in charge of MMCIS Investments in Ukraine.

Ekaterina Makarevitch (Tudos) used to be the right-hand person of Vitaliy Sotula. A few companies within MMCIS were registered in her name, in particular OOO Profit Consul.

Arvid Orro is a founder of MillTrade.

Natalia Kolesnik was a director of Kondakov’s charity.

Yanina Praschur was a founder of OOO Big Limited, one of the firms within MMCIS in Ukraine.

Roman Komysa is the latest president of MMCIS and a founder of OOO MillTrade.

The list of the above-mentioned people is not complete, but it gives the idea of most executives in the notorious Ponzi scheme. To gain more insights about this large-scale fraud we should consider its other activities.

MMCIS promo campaign

After Kondakov had become an MMCIS brand ambassador, the broker launched an aggressive advertising campaign. The large flow of advertisement flooded Ukraine’s media and also spread outside the country. Billboards and the company’s logo were seen in Russia and other CIS countries. Praising materials about the broker were released in the media and negative articles were replaced with adverts for a reward. The PR campaign achieved perfection. The company created analytical web resources where bogus clients applauded the broker’s traders for their expertise.

Photo: MMCIS logo at the top of the Dnipro hotel on the European square in the center of Kyiv.

Interestingly, being neither a major bank, nor a successful finance company, MMCIS allocated a generous budget for its PR campaign equal to large banks. The broker could afford such expenses as its operation rested on the principle of attracting clients at any cost until the Ponzi scheme brings money to its founders.

No wonder, with its lavish advertising budget the MMCIS brand popped up everywhere. The broker’s logo was printed on race cars at popular tournaments. Well-known politicians held election campaigns with MMCIS support. Even celebrities took part in the broker’s advertisement. Among them were such big names in the Russian show business as Leonid Yarmolnik, Barbara Brylska, Anfisa Chekhova, Aleksander Buynov, Boris Burda, and Aleksey Buldakov. Obviously, these famous “investors” did not know about the Ponzi scheme. They just agreed to be filmed for a good award but were unaware that they were helping fraudsters win favor with Russian clients.

One more interesting point is a contest arranged by MMCIS called Snow-white Mazda. The company claimed it would raffle off generous prizes – a few posh cars. However referring to Ukraine’s traffic police, one white Mazda 3 was registered in the name of Aleksander Volkov and the second car belonged to Vitaliy Sotula.

Photo: one of those snow-white cars which was allegedly raffled off among MMCIS clients.

MMCIS did not exhaust its PR techniques. Another example of the peculiar marketing is the promo campaign with the title: Have tattoo of MMCIS and receive prize money! The promo was launched in May 2014. Participants who had the MMCIS logo tattooed were offered a great reward - $3,000!

Photo: MMCIS paid a generous reward of $3,000 for its brand name tattooed.

Benefitting from its promo campaign, MMCIS amassed huge funds from the population as the company promised over 100% of an annual interest rate. MMCIS focused on people without trading experience on Forex. According to different sources, the company defrauded people of $50-300 million for several years. Most of this money was spent on advertisement which used to be installed everywhere as the company spared no expense.

Photo: MMCIS popularity in Ukraine, Russia, and Belarus in 2005-2015 according to GoogleTrend.

How did they trick?

In fact, the money was not used for trading on successful accounts. Instead of actual management of entrusted funds, they provided clients with fake charts of profitable trading, thus attracting more and more naïve investors. Like in all Ponzi schemes, the affiliate program was assigned the key part. Investors were eager to earn extra profits and attracted new clients, enhancing the company’s reputation.

Later, MMCIS offered a new service: IndexTOP20. Clients invested in 20 the most successful traders at the same time who displayed exceptional trading skills on Forex. The company compiled a rating of successful traders who made steady profits and managed investors’ funds. Kondakov was also introduced as an efficient trader.

Photo: the list of “successful” bogus traders who were promoted by MMCIS as trustees of clients’ investments.

In 2012, the company encountered the first trouble. The media reported on swindlers from Melitopol. So the image of a prosperous financial company was obviously spoilt. MMCIS invented a great way out: they played a trick of selling the MMCIS trademark at 100 million Hryvnias ($12.5 million). No doubt it was a lie to calm down potential clients. In fact, Savtchenko sold the MMCIS trademark, granting the right to settle the payment within three years. Interestingly, assets of MMCIS Forex Group swelled by 100 million Hryvnias immediately.

After 2012, MMCIS managed to sort the mess out and again picked up steam. Eventually, the fraud collapsed in autumn 2014. In August – September 2014, the media reported on numerous cases of delayed repayments to credulous investors by MMCIS, the successful financial company. In October 2014, Kondakov, the founder of the Ponzi scheme, unexpectedly left MMCIS. The most successful trader drained his account in a public move and announced he would quit the company. Everything was planned in advance. Roman Komysa was claimed to be responsible for such developments.

On December 12, 2014 a criminal case was filed against Forex MMCIS Group in Moscow. Interestingly, the investigation in Ukraine was surprisingly suspended and Konstantin Kondakov won all trials on his illegal financial activities in Ukraine.

Interestingly, the lawsuit against MMCIS has not been launched yet in Russia, though the losses incurred by the scam amount to several million dollars.

MillTrade

The MillTrade broker emerged in the financial market in 2013 and rapidly gained popularity. A striking resemblance between MMCIS and MillTrade was recognized easily. No wonder both Ponzi schemes were founded by the same people. Clients received emails from MillTrade on behalf of Kondakov.

Photo: some clients received emails signed by Kondakov from MillTrade’s electronic address. This proves an evident connection between MillTrade and MMCIS.

The company put a stress on a simplified market entry compared to traditional investing in PAMM accounts. All investors were required to do is deposit their funds to the company’s account and wait for a monthly report with a statement how much money clients earned with MillTrade. In practice, there were neither PAMM accounts nor managing traders. Investors just injected their money into MillTrade and believed that they were investing in the top seven traders.

Photo: Golden seven were promoted on the MillTrade website. So clients were called on to invest their money.

The Golden seven program was a portfolio consisting of accounts of the seven best traders: Vadim Idrisov, Mikhail Fyodorov, Viktor Gaiduk, Yevgeniy Ponizovskiy, Vyacheslav Belousov, Erick Nyman, and Gerardo Porras.

The most information in the internet can be found about Erick Nyman compared to the rest of the traders. He has written a lot of Forex-related articles for the Forbes.

Eventually, MMCIS announced a merger deal and acquired the notorious MillTrade broker. Citing Roman Komysa, MillTrade was not an affiliate company.

New project – new Ponzi scheme

Nevertheless, Kondakov & Co. was not going to give up. Ambitious internet entrepreneurs created a new project: safe internet messenger called DefTalk (DefCom company). DefCom was registered in the name of Dmitriy Cherniy who has been mentioned above. DefCom operated on exactly the same principles, in particular assets were artificially bloated. The history repeated itself like it was with Forex MMCIS Group when Savtchenko sold himself the MMCIS brand name for 100 million Hryvnias.

Besides, in December 2015 Kondakov posted a statement on his account in social networks. He announced that the new project would be launched soon to revive MMCIS. Interestingly, Kondakov was not going to exploit the concept of a Ponzi scheme. The thing is that Kondakov needed investors and almost $2 million urgently.

Those ones who believe enticing pledges to gain huge returns have to think carefully. Does it really make sense to invest your money in a dubious firm? Such a promising project is likely to operate as an odious Ponzi scheme.

The opinion of the review`s author is private and not obligated to reflect the position of the resource. If you have any remarks and suggestions on new articles please contact us via this form.
Author of MMCIS: Phu Quoc | Date 2020-06-01
MMCIS deceived me and took my whole capital with them. I thought that this broker could be trusted because of how much they promote their company. It has become very popular and many was interested in dealing with them. I have been swayed by their popularity and I thought they would not dare do something horrendous because their company is known by many already. But I was just so wrong and my capital of $700 was gone.
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Author of MMCIS: Tsitei | Date 2020-05-28
The promo campaigns of MMCIS were outrageous. They even reached the spectrum of tattoos. My friend had this company's logo tattooed on his back for the reward. The reward was really credited to his account. However, the problem is that the broker never made it available for withdrawal. As a matter of fact, the company never released any money.
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Author of MMCIS: Milena | Date 2020-05-20
I remember a few years back when MMCIS was gaining popularity, I was one of the many who were intrigued and was tempted to open an account with this broker. I ended up shelling out a total of $1000 because my account manager told me to have higher capital to earn more. I foolishly believed and I also participated in many of their campaigns which rewarded me a few dollars. But in the end, we still found out that this is a fraud broker and we have no hope in retrieving our money anymore.
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Author of MMCIS: Melchor | Date 2020-05-13
After opening an account at MMCIS, the first thing that my account manager told me was to invite more friends into trading with them. She said that I will receive bonuses in return for recruiting more clients. Honestly, she gave very little attention to trading itself. She was more focused on my finding more clients than guiding me with my trading activities. Now I understand why that is. This broker is a fraud and their only aim is to recruit a huge number of people and take all our deposits.
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Author of MMCIS: Onyuvann | Date 2020-05-11
Unfortunately, this is not the first and not the last of this kind of scammer,in other words, an unfair broker. Surely their income is a losses of traders, but for show, there are successful traders, so as not to lower their reputation below the baseboard.
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Author of MMCIS: Xina | Date 2020-05-05
A sales representative from MMCIS contacted me and briefed me about their company. It was a good talk and the representative was pretty convincing. On top of it, posters and banners of the company could be seen almost everywhere. They publicity during that time was on peak and it made me decide easier. I easily trusted them because of that. Now I regret it. The decision I made was a mistake and it costed me $500. I can never forgive this broker.
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Author of MMCIS: Solidad | Date 2020-04-28
MMCIS definitely exhausted their publicity campaigns. There was a time when the company's name would be seen everywhere -- be it physical or online. It is no wonder that they were able to attract a lot of clients including my husband. He gambled and took a risk by opening an account at MMCIS. At first, his experience was going well. However, complaints started to arise which are mostly about the withdrawal of their funds. My husband tried to withdraw his profit as well but it was on queue for a long time. Eventually the broker closed down and he wasn't even able to retrieve his money.
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Author of MMCIS: Fairuz | Date 2020-04-17
MMCIS was able to trick me. I am one of the unfortunate people who was swayed by all their publicity stunts and believed that they are a decent broker. I invested $1000 on this broker and I have lost it forever. I know that there is no way to retrieve it anymore. MMCIS intended to scam their clients from the start thus no appeal could make them change their minds. However, I stand firm with my desire to have this fraud broker punished lawfully. They made a huge negative impact on their clients and they must pay for it.
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Author of MMCIS: Roza | Date 2020-04-10
Among the fraud brokers that I know, MMCIS is the only one that was able to give a permanent damage to its clients: the company logo tattoo. I sympathize with those clients who have had the logo tattooed on their bodies. This is probably what they regret the most. I understand why some of them has done it. Who wouldn't want a huge reward right? But this is permanent and could remind them of the fraudulence over and over again.
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Author of MMCIS: Leejo | Date 2020-03-26
These people are ambitious aren't they? Fooling their clients at MMCIS was not enough. They even started another scheme to deceive people and rob them off their money. I wonder how they are still able to even operate another company. Aren't they supposed to be in jail for their fraudulent scheme? Did they just get away with it? How about the thousand people who have been fooled and were victims of this broker? The owners must be punished.
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Author of MMCIS: Rabwon | Date 2020-04-21
This kind of people are never contented. They are greedy for money and they would do whatever it takes even if it meant destroying the lives of other people. Being a victim of fraudulence is no joke. It is a big deal and more often than not, it is the small-time traders who fall victim. It is those whose investment is everything that they had. I feel so sorry for those who have given everything on this broker only to be betrayed in return.
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