Vora Wealth Management

Attorneys at ChapmanAlbin are investigating the actions of Vora Wealth Management, PLLC, and its principal, Dharmesh Virendra Vora, following a recent enforcement action by the Securities and Exchange Commission (SEC). Vora Wealth and Vora have been charged with breaches of fiduciary duty and compliance failures that resulted in substantial financial losses for their clients.

From November 2020 through November 2021, Vora Wealth used discretionary authority to invest over 85% of its clients’ assets—approximately $124 million—into high-risk structured notes. These investments were tied to a small basket of stocks traded on Nasdaq, and while they promised high annualized returns (18% to 32.5%), they also exposed investors to significant risks, including the loss of most, if not all, of their principal.

The structured notes were inappropriate for many of Vora Wealth’s clients, particularly retirees who relied on their investments for monthly living expenses. Despite the clients’ safety and income objectives, Vora sold annuities to purchase these notes without adequately disclosing the risks involved. When one of the basket stocks fell below its protection threshold in 2021, coupon payments to investors stopped, and the stock never recovered. By July 2024, most of these notes had matured, leaving Vora Wealth’s clients with a collective loss of over $89 million.

Vora Wealth and Vora failed to provide many clients with the necessary investment prospectuses or inform them about the purchases until after they were reflected in account statements. Additionally, when verbally describing the investments, Vora downplayed the risk of principal loss while promoting the high-interest payments. Clients were misled into believing that these investments were safe and aligned with their financial goals.

During this period, Vora Wealth also received undisclosed benefits from a broker through which most of the structured notes were purchased, including payments to subsidize client events and other perks. These undisclosed benefits created conflicts of interest that were never communicated to clients.

As a result of these violations, the SEC has barred Dharmesh Vora from associating with any broker, dealer, or investment adviser. Vora Wealth has been censured, and the firm, along with Vora, has been ordered to pay over $1.3 million in disgorgement and penalties.

If you or someone you know has suffered financial losses due to the deceptive practices of Vora Wealth Management, contact ChapmanAlbin today. Our experienced attorneys are dedicated to helping victims of investment fraud recover their losses. We offer free consultations to review your case and discuss your legal options.