Complaint Review: Velez Capital Managment - New York New York

Oliver Velez White Knight or Con Man/Scam Artist?

Later in 2008 I paid $1,995 for the VCM 2 Day Training course (the price of this course has doubled since then but the course material remains the same).  With that payment I was entitled to free retakes of that training course for life and would be able to pay for the remaining 5 Day Training course at a later date and become a full fledged Prop Trader, should I choose to do so. That would entitle me to free retakes of the entire 7 Day Training course for life and I would also trade $50,000 of Mr. Velezs money at extremely attractive commission rates ($0.02 per 100 shares) without putting up any risk capital.  I never got the chance to take the 5 Day course (the company closed its doors see more below) but I did retake the 2 Day Training course almost every time it was offered (usually monthly).

I have little issue with the trading methods Mr. Velez teaches (although Mr. Velez seldom taught the 2 Day course always had a personal problem or some other excuse for not being able to teach - the other instructors were very good however).  The instruction was usually very good and with free retakes for life and access to the Proprietary Trading Chat Room, I could always get my questions answered.  The one major negative I had with the program was the trading platform it had continuous charting problems and the trading servers were up and down like a yo-yo; not a very reliable trading platform when compared to others available at essentially the same price.  Again I have little issue with any of this.

The issue I have is Oliver Velez and his partner Charlie Vaccaro (silent partner when I joined).  Out of the blue they shutdown their business March 22, 2010 - no prior notice, no access to account information, no responses to emails, no telephone calls returned/accepted, no ability to trade, no Proprietary Trading Chat Room, no free retakes for life and my risk capital is inaccessible and probably gone (embezzled).  Independent traders and Prop Traders (traders that have paid up to $12,995 for a 7 Day training) totaling somewhere between 1,000 and 1,500 were literally left in the same boat in the dark, no explanation, no trading and no money.

Basically one day everything was fine and the next there was no sign of Velez Capital Management (or Team Trading as the name was changed).  Vaccaro is missing in action - he hasn't surfaced.  Oliver Velez, on the other hand being the consummate salesman is again promoting another trading program venture similar to the one he and Vaccaro just shutdown (different name and now he is suggesting it is totally legal which implies what he was doing initially Velez Capital Management/Team Trading - wasn't legal). (In promoting his new trading program not really new, some minor tweaks and a name change Mr. Velez says any trading group offering 100% payout of profits is not legitimate.  I wonder what that says about VCM).

I have been monitoring Oliver's new trading room (it was free until April 12, 2010, and he is/was heavily promoting his new project iFundtraders (website at www.iFundtraders.com) except this time he doesnt want anything to do with independent traders.  He also wont honor his commitment to provide free retakes for life for the 2 Day Training.  He simply refuses to address the issue and also claims to have no knowledge of what happened to the risk capital of the Independent Traders.

Mr. Velez will gladly sign up new Prop Traders to the tune of $12,000 for his training course and, oh yes, you will get free retakes for life (Apparently Mr. Velezs definition of for life means until he decides to no longer honor that commitment) and trade Mr. Velezs capital just like before.