Christopher DeVocht managed to turn just $88,000 into a staggering $415 million through trading #Tesla options. However, when Tesla's stock price collapsed in 2022 and the markets experienced a sharp downturn, his investment empire crumbled. Now, he is suing his investment firm and financial advisors, claiming they failed to provide proper advice to help him manage risk and protect his wealth.

Million-Dollar Profits Thanks to Tesla

DeVocht, who earned most of his fortune trading Tesla options, hired investment firm RBC Dominion Securities to help him manage his growing wealth. RBC assigned him financial advisors who were responsible for overseeing his #investments and assisting with financial planning.

According to DeVocht, the firm not only opened a margin account for him but also provided substantial loans, which he used for further investments. These loans, however, became his downfall when the markets began to #crash .

Advisors Were Supposed to Protect His Wealth

DeVocht claims that advisors from RBC and tax expert Grant Thornton LLP should have recommended risk mitigation strategies to help him protect at least part of his fortune. His team included an RBC employee who acted as his “financial planning coach.” According to DeVocht, these advisors failed and did not prevent the total collapse of his portfolio.

Wealth Collapse in 2022

DeVocht’s investment portfolio peaked at $415 million on November 30, 2021. However, by early 2022, when Tesla's stock price plummeted and broader markets crashed, his wealth quickly evaporated. DeVocht was forced to sell his Tesla shares to pay off the loans from his margin account, which ultimately led to the complete loss of his investments.

Lawsuit and Claims

DeVocht is now seeking compensation for damages, legal costs, and interest. He claims that his losses were caused by the lack of adequate advice provided by his financial advisors. According to him, if he had been recommended appropriate strategies to protect his wealth, he could have retained a substantial portion of it.

"Had it not been for the defendants' inadequate advice, the plaintiffs would have retained a significant portion of their wealth and adopted financial planning that would not have resulted in the loss of their entire net worth," DeVocht stated in the lawsuit.

A Lesson for #cryptoinvestors , Too

Although this case concerns traditional stocks, it demonstrates that similar situations are not limited to the #cryptocurrencymarket . According to X platform user Kun, who has over 21,000 followers, it serves as a reminder that market collapses can affect any sector.

What Happens Next?

The lawsuit was filed with the Supreme Court of British Columbia in Canada, and RBC Wealth Management Financial Services and Grant Thornton LLP are named as defendants. Both parties have yet to respond to the lawsuit, and the case is still unfolding.

Notice:

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