Oliver Velez White Knight or Con Man/Scam Artist? I joined Velez CapitalManagement (VCM name changed to Team Trading) as an independent trader in May. I put up the risk capital required to get margin of 20 to1 ($5,000 at the time) and paid $0.0045 per share in commissions to get access totheir Proprietary Trading Chat Room and get 100%payout of any profits on a monthly basis. I also paid a monthly fee for the trading platform and data was includedin the monthly cost of the platform. (Thecommissions were high in comparison to what the Prop Traders were given - $0.02 per 100 shares - but I feltthe higher commissions were warranted with access to the Proprietary Tradingroom). I thought that was a pretty good deal but whether it was is not myissue.
Later in 2008 I paid $1,995for the VCM 2 Day Training course (the price of this course has doubled sincethen but the course material remains the same). With that payment I was entitled to free retakes of that training coursefor life and would be able to pay for the remaining 5 Day Training course ata 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 forlife and I would also trade $50,000 of Mr. Velezs money at extremelyattractive commission rates ($0.02 per 100 shares) without putting up any riskcapital. I never got the chance to takethe 5 Day course (the company closed its doors see more below) but I didretake the 2 Day Training course almost every time it was offered (usuallymonthly). I have little issue with thetrading methods Mr. Velez teaches (although Mr. Velez seldom taught the 2 Daycourse always had a personal problem or some other excuse for not being ableto teach - the other instructors were very good however). The instruction was usually very good andwith free retakes for life and access to the Proprietary Trading Chat Room, Icould 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 downlike a yo-yo; not a very reliable trading platform when compared to othersavailable 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 (silentpartner when I joined). Out of the blue they shutdown their business March22 - no prior notice, no access to account information, no responses toemails, no telephone calls returned/accepted, no ability to trade, noProprietary Trading Chat Room, no free retakes for life and my risk capitalis inaccessible and probably gone (embezzled).independent traders andProp 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 boatin the dark, no explanation, no trading and no money. Basically one day everythingwas fine and the next there was no sign of Velez Capital Management (or TeamTrading as the name was changed). Vaccaro is missing in action - hehasn't surfaced. Oliver Velez, on the other hand being the consummatesalesman is again promoting another trading program venture similar to the onehe and Vaccaro just shutdown (different name and now he is suggesting it istotally legal which implies what he was doing initially Velez CapitalManagement/Team Trading - wasn't legal). (In promoting his new trading programnot really new, some minor tweaks and a name change Mr. Velez says anytrading 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, and he is/was heavily promoting his new project iFundtraders (websiteat www.iFundtraders.com) exceptthis time he doesnt want anything to do with independent traders. He also wont honor his commitment to providefree retakes for life for the 2 Day Training. He simply refuses to address the issue and also claims to have noknowledge of what happened to the risk capital of the Independent Traders. Mr. Velez will gladly signup 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 forlife means until he decides to no longer honor that commitment) and tradeMr. Velezs capital just like before. IsOliver Velez a White Knight looking after the best interests of his traders ashe claims or is he just one of the many con men/scam artists that make theirfortunes by bilking unknowing traders? You be the judge but be forewarned, if you ever shake his hand, countyour fingers before you leave his presence.br style=""
0 comments