A man who reportedly turned $88,000 into $415 million before losing it all has now sued his investment firm and advisers for failing to provide him with adequate advice as he carried out risky trades.
Christopher DeVocht claimed RBC Dominion Securities set him up with a margin account and substantial loans that ultimately backfired, wiping out his entire investment portfolio, Stockwatch reported on Oct. 3.
DeVocht mostly made his wealth through trading shares and Tesla options.
The Canada-based man then hired RBC, who assigned advisers that Devotch claims were supposed to help him preserve his wealth by recommending strategies that minimize risk.
It included a tax adviser at Grant Thornton LLP and an RBC employee who served as a “coach” for Devotch’s financial planning.
DeVocht’s portfolio peaked at $415 million on Nov. 30, 2021, but then started to fall aggressively in 2022 when Tesla and the broader stock market collapsed.
He was forced to sell many Tesla shares and repay loans from his margin account, which contributed to the portfolio wipeout.
As DeVocht sees things, his losses were caused in part by RBC and Grant Thornton LLP.
“But for the defendants’ inadequate advice … the plaintiffs would have preserved a substantial portion of their wealth and implemented financial planning that would not have resulted in the loss of their entire net worth.”
While the case involved traditional stocks, X user Kun highlighted to his 21,000 followers that the recent case shows these happenings aren’t confined to the crypto markets.
Related: Tesla selling Bitcoin last year turned out to be a $500M mistake
DeVocht is seeking court-ordered damages plus legal costs and interest.
RBC Wealth Management Financial Services and Thornton were also named defendants in the lawsuit, which was filed in the Supreme Court of British Columbia in Canada.
The defendants have not yet filed a response.
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