Velocity Redemption

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Am new to this forum so apologies to all if this question has been asked and answered already.

I travel annually from Melbourne to a trade show in Las Vegas each September. Most of my flying is done Melbourne to various Chinese destinations with SQ - up to 10 flights a year - plus reasonable rewards points earn on AMEX means I accumulate significant points annually 90% of which I redeem with SQ.

I am totally accustomed to SQ's redemption program and use it regularly. Once a flight is booked through award system - if for some reason I cancel flight - I pay fees I think US$30 or KF points 5,000 and all other points redeposited into KF account.

Yesterday I searched Velocity site for a suyitable flight in Sept 2011 ret to LAX - found flight where dates suit - 150,000 Velocity points return in Biz plus A$664.00 or so - SQ equiv 136,000 KF points / taxes about $500 Standard Award I think but takes basically 2 extra days travel.

Before booking the flight I thought I should check to see if for some reason I needed to cancel the Velocity booking - like if I needed to be in China about same time - then SQ might be better routing for me - MEL-SIN-NRT-LAX / LAX-NRT-SIN-PEK-SIN-MEL or such - then if I cancel Velocity award will points be redeposited.

I called Velocity help number and was advised once I book award flight and then subsequently cancel points are forgeited.

Is this really the case please?
 
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