Vora Wealth Management clients who suffered investment losses may be entitled to compensation through ongoing legal proceedings and regulatory actions.
Vora Wealth Management Client Losses
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In September 2025, Schwab was ordered to pay $165,440 in damages to Timothy Washburn for negligence and breach of fiduciary duty in connection with Vora Wealth Management investments. This followed an earlier March 2025 ruling requiring the company to pay $167,950 to Linda and Jay Despain for similar Vora-related claims.
These cases highlight a concerning pattern: Vora Wealth Management invested approximately $139.5 million of client funds in complex financial products without proper disclosure or client consent. This resulted in over $89 million in losses across 738 client accounts when the underlying stocks declined from November 2021 and did not recover through July 2024.
The Vora Wealth Management Investment Scheme
Between November 2020 and November 2021, Vora Wealth Management placed nearly 85% of client assets into structured notes connected to four NASDAQ-listed stocks. Many clients were unaware of these high-risk investments, which often involved liquidating annuities to fund the purchases.
The structured notes initially offered downside protection, but when one of the underlying stocks dropped below the 50% protection level in November 2021, coupon payments ceased. The stock never recovered, leading to substantial realized losses when most notes matured by July 2024.
Dharmesh Vora SEC Actions
The Securities and Exchange Commission took action against Dharmesh Vora, the principal behind Vora Wealth Management. The SEC barred Dharmesh Vora from the securities industry until 2027 for breaching fiduciary duties and making unsuitable investment recommendations. Vora also faces penalties exceeding $1.6 million.
To assist affected Vora Wealth Management investors, the SEC established a Fair Fund for loss recovery. The commission encourages Vora clients to pursue FINRA arbitration for additional compensation.
Industry Implications
These cases have sparked important debates about the responsibilities of registered investment advisor (RIA) custodians. Industry experts, including financial planning authority Michael Kitces, argue that custodian firms must take greater responsibility for vetting complex products offered through their platforms.
The question remains: Should custodians like Schwab bear liability when advisors use their platforms to market unsuitable investments to clients? These cases suggest the answer may be yes.
Schwab’s Response
Despite disagreeing with the recent arbitration rulings, Schwab has indicated it will review its options for further action. The company appears to prefer resolving claims through individual settlements rather than class action litigation.
Some evidence suggests inappropriate arrangements between brokers and Vora Wealth Management during these transactions, raising additional concerns about fair dealing practices in the industry.
Looking Forward
These cases underscore the critical importance of transparency and proper oversight in investment management. For investors, they serve as a reminder to:
- Carefully review all investment recommendations
- Understand the risks associated with complex financial products
- Ensure proper diversification of investment portfolios
- Work only with advisors who maintain clear fiduciary standards
The Vora Wealth Management cases represent more than isolated incidents of misconduct—they highlight systemic issues in how complex investment products are marketed and supervised within the financial services industry.
Key Takeaways
- Charles Schwab has been ordered to pay over $330,000 in damages across two major Vora Wealth Management arbitration cases in 2025
- Vora clients lost more than $89 million through unsuitable investments in structured notes
- The SEC banned Dharmesh Vora from the securities industry and imposed significant financial penalties
- These Vora cases raise important questions about custodian liability and the need for enhanced investor protections
- A Fair Fund has been established to help affected Vora Wealth Management investors recover their losses
Vora Wealth Management Loss Recovery Options
If you invested through Vora Wealth Management and experienced losses, you may be entitled to compensation. Haselkorn & Thibaut represent Vora investors and have experience in investment fraud recovery cases.
Contact Haselkorn & Thibaut today to discuss your Vora Wealth Management loss recovery options. Our attorneys understand the complexities of Vora investment cases and can help you navigate the FINRA arbitration process and SEC Fair Fund claims.
