A carpenter from Sooke, a municipality located in Greater Victoria on Vancouver Island, British Columbia, Canada, is suing the Royal Bank of Canada and an accounting firm after turning an $88,000 CAD investment in Tesla into $415 million—only to lose it all.
Christopher DeVocht claims RBC Dominion Securities, RBC Wealth Management Financial Services, and Grant Thornton LLP gave him poor advice, breached contracts, and were negligent in managing his investments, leading to the loss of his entire fortune. None of his allegations have been proven in court, reports CBC News.
According to the lawsuit filed in B.C. Supreme Court, DeVocht’s portfolio of Tesla stocks and derivatives soared in value between 2019 and 2021. By early 2020, his holdings had grown to $5.5 million CAD. By mid-2020, they had skyrocketed to $26 million CAD, and by April 2021, his net worth had hit $186 million.
As Tesla’s stock continued climbing, DeVocht’s investments peaked at $415 million CAD by November 2021. During this time, DeVocht sought financial advice from RBC to retire early and secure his wealth. He alleges RBC advisers didn’t support his plan to liquidate his Tesla holdings and move to safer investments.
Instead, DeVocht claims RBC encouraged him to borrow against his equity through a margin account, increasing his risk. The lawsuit also states he was advised to donate over $25 million to RBC’s charitable fund for tax credits.
When Tesla shares began to plummet in October 2022, DeVocht’s investment company was forced to sell off stocks to repay loans, eventually wiping out his entire portfolio. So far, the defendants have yet to comment. But this is wild story as Sooke is a relatively small municipality (population 15,000) and to hear about this carpenter growing his Tesla investment to $415 million CAD ($305 million USD) is incredible.