A man who turned $88,000 into $415 million before losing it all has filed a lawsuit against his investment firm and advisors for allegedly failing to provide adequate advice during risky trades. Christopher DeVocht claimed that RBC Dominion Securities gave him a margin account and substantial loans that ultimately led to the loss of his entire investment portfolio. The incident was reported on October 3.
DeVocht accumulated his wealth mainly through trading shares and Tesla options. He then hired RBC, which assigned advisors to help him preserve his wealth by recommending strategies to minimize risk. This included a tax advisor at Grant Thornton LLP and an RBC employee who acted as a financial planning “coach” for DeVocht.
DeVocht’s portfolio reached $415 million on November 30, 2021, but started declining in 2022 as Tesla and the broader stock market faced a downturn. He had to sell many Tesla shares and repay loans from his margin account, contributing to the portfolio’s decline. DeVocht believes his losses were partially caused by RBC and Grant Thornton LLP.
Despite defendants’ alleged inadequate advice, DeVocht believes that he could have retained a significant portion of his assets and implemented financial planning that would not have led to the complete loss of his assets. The case, which involved traditional stocks, highlights to investors that such events are not limited to the crypto markets.
DeVocht is seeking compensation, legal fees, and interest as determined by the court. RBC Wealth Management Financial Services and Thornton are also named as defendants in the lawsuit filed in the Supreme Court of British Columbia, Canada. The defendants have not yet responded to the allegations.
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