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Carpenter's $415M Tesla Gamble Turns to $0: Lawsuit Alleges Poor Advice

From $88,000 to $415 million in two years, now gone. A BC carpenter's Tesla investment saga takes a dramatic turn, leading to a lawsuit against RBC.

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1 min read
This picture is clicked outside the city on road. We see three core bottle and in the middle of...
This picture is clicked outside the city on road. We see three core bottle and in the middle of this picture, we see a man in blue shirt and blue jeans is standing and laughing and behind him we see six seven eight, eight cars for wheeler which are parked on the road and behind the car, we see trees. We even see street light, behind them we see building with red color bricks.

Carpenter's $415M Tesla Gamble Turns to $0: Lawsuit Alleges Poor Advice

Christopher DeVocht, a carpenter from Sooke, BC, invested $88,000 CAD in Tesla stocks and derivatives in 2019. His investment grew exponentially, reaching a peak value of $415 million CAD in November 2021. However, a series of events led to the loss of his entire fortune. DeVocht is now suing RBC Dominion Securities, RBC Wealth Management Financial Services, and Grant Thornton LLP for poor advice and negligence.

DeVocht's investment grew rapidly, reaching $5.5 million CAD by early 2020, $26 million CAD by mid-2020, and an astonishing $186 million CAD by April 2021. At its peak, his Tesla holdings were worth $305 million USD. However, he alleges that RBC advisers did not support his plan to liquidate his Tesla holdings when he sought advice to retire early and secure his wealth.

DeVocht claims that RBC encouraged him to borrow against his equity through a margin account, increasing his risk. When Tesla shares plummeted in October 2022, his investment company was forced to sell off stocks to repay loans, wiping out his entire portfolio. The lawsuit also alleges that DeVocht was advised to donate over $25 million to RBC's charitable fund for tax credits.

DeVocht's lawsuit alleges poor advice, breach of contracts, and negligence on the part of RBC and Grant Thornton LLP. The case highlights the risks associated with high-stakes investing and the importance of thorough financial advice. As of now, there is no publicly available information about DeVocht being charged related to building a Tesla investment license or losing his entire fortune as described in the lawsuit.

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