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[Scam Investigations Committee]

We the members of the Scam Investigations Committee of the Forex Peace Army have deliberated on all the evidence available to us and have reached a conclusion. It is our opinion that...

FPA members Yokebeto and Mr. Madruga had accounts with Velocity4x, which is an IB of StartForex. Yokebeta was a member of a group of Japanese traders who were using a new EA. Mr. Madruga was trading independently of that group. In Yokebeto's case, there was a statement from Velocity4x that they didn't like the EA and were canceling all profits, and returning the initial balance. Then there was no further communications. Mr. Madruga was trying to do a simple withdrawal and heard nothing for an extended period of time. Finally, he got one note from Velocity4x stating that the withdrawal was sent over to StartForex for processing, then silence.

After all of these traders complained to the FPA, our investigator, Gerard, sent some additional emails to both Velocity 4x and to Start Forex, but also could get no response.

The FPA admits that it is within the realm of possibility that the EA used by Yokebeto may have violated some rule of either Velocity4x or StartForex, but their failure to provide an explanation for confiscation of profits is unacceptable and forces us to side with the traders on this issue. In Mr. Madruga's case, the situation appears to be simple theft of the entire profit and starting balance. In both cases, even if the traders had somehow broken a rule, failure to provide a clear explanation of the situation is something we view as a serious breach of ethics.

Failure to return money owed to traders is the FPA's first definition of Scam. Thus, we officially find that both Velocity4x and StartForex are scams. We offer Velocity4x and StartForex the chance to resolve this issue by returning all money legitimately owed to Mr Madruga and to Yokebeto's trading group..

We extend our sympathies to all the traders involved for the loss of their money. We thank Lt. Gerard for his efforts on this case.

Velocity4x and StartForex are hereby blacklisted by the Forex Peace Army. We urge all the vicitms to band together and seek legal redress for this issue. We urge traders not to do business with these companies.


Discussion thread for scam finding against Velocity4x and StartForex

Yokebeto's original complaint against Velocity4x

[Scam Investigations Committee]

We the members of the Scam Investigations Committee of the Forex Peace Army have deliberated on all the evidence available to us and have reached a conclusion. It is our opinion that...

FPA member Mr. Madruga had an account with Velocity4x, which is an IB of StartForex. Mr. Madruga was trading independently of another group having problems getting money from these companies. Mr. Madruga was trying to do a simple withdrawal and heard nothing for an extended period of time. Finally, he got one note from Velocity4x stating that the withdrawal was sent over to StartForex for processing, then silence.

Our investigator, Gerard, sent additional emails to both Velocity 4x and to Start Forex, but also could get no response. Eventually, the Scam complaints were confirmed.

StartForex later contacted the FPA, but no progress was made on any negotiations. When FPA member Eliezer emailed StartForex regarding the issue with Mr. Madruga, a Start Forex employee named Alvaro Fridenzon replied...

I do know about Mr. Madruga, very well know Forex Cheeter not even with EA but trying to hack the company’s spread. A well know computer script programmer.

About a month later, Mr. Madruga unexpectedly got his money. We do feel he is also owed an apology for the delays and the insults.

Due to the other traders still not being paid, Velocity4x and StartForex are still blacklisted by the Forex Peace Army. Even so, we are very pleased to see that at least one part of this scam case has been resolved. We still strongly recommend against placing any money with this brokerage until all issues are fully resolved.


Mr. Madruga's confirmation that he received the money

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