A Canadian carpenter’s meteoric rise to financial stardom was followed by a devastating crash, leaving him with nothing. Christopher DeVocht, a self-taught day trader from Vancouver Island, claimed to have turned an initial investment of C$88,000 into a staggering C$415 million within two years. However, his luck ran out in 2022 when Tesla’s stock plummeted, wiping out his entire fortune.
DeVocht, who traded options on Tesla shares, is now suing RBC Dominion Securities, RBC Wealth Management, and accounting firm Grant Thornton LLP, alleging that the advice he received was negligent and failed to consider his limited financial knowledge. Despite being a skilled trader, DeVocht claimed to have limited understanding of financial planning and tax strategies.
According to the lawsuit, DeVocht’s financial advisors recommended that he incorporate a company, accumulate Tesla shares, and hold them for as long as possible to minimize taxes. This strategy led to an extreme concentration in Tesla, which ultimately proved disastrous. When the stock crashed, DeVocht’s corporation was forced to sell its Tesla holdings to repay loans, leaving him with nothing.
DeVocht is seeking damages for breach of contract and negligence, claiming that if not for the inadequate advice, he would have preserved a significant portion of his wealth. He also alleges that Royal Bank’s recommendations to make charitable donations further eroded his wealth. The case highlights the importance of seeking comprehensive financial advice and the dangers of unchecked risk-taking in the high-stakes world of day trading.
Leave a Reply