A man who turned a modest $88,000 investment into a staggering $415 million through risky Tesla options trades is now suing his investment firm and financial advisers after losing everything. The case has sparked interest, not just because of the dramatic rise and fall of DeVocht’s wealth, but also because it highlights the risks of high-stakes trading and the importance of financial advice.
Christopher DeVocht, a Canada-based investor, made the bulk of his fortune by trading Tesla shares and options during the electric car company’s meteoric rise. However, after his portfolio peaked in late 2021, it came crashing down in 2022 as Tesla’s stock price—and the broader market—collapsed. What followed was a cascade of financial losses that wiped out DeVocht’s entire portfolio, leaving him with nothing but the debts from margin loans.
The Rise: Turning $88K Into $415M
DeVocht’s journey began with a relatively small initial investment—$88,000—but he leveraged his position through options trading in Tesla stock. At the height of the market in November 2021, his portfolio swelled to a jaw-dropping $415 million, making him a paper millionaire.
Options trading, which involves betting on the future price of stocks, is highly speculative and can yield huge returns when timed right. DeVocht’s bet on Tesla, a stock that saw exponential growth during the pandemic, paid off handsomely, allowing him to reap massive profits in a short amount of time.
The Fall: Losing It All in 2022
But the good times didn’t last. As the stock market began to dip in 2022, Tesla’s share price took a sharp dive. With Tesla shares plummeting, and margin loans compounding, DeVocht was forced to sell off large portions of his holdings to repay loans.
In the end, his portfolio—once worth hundreds of millions of dollars—was completely wiped out, and DeVocht found himself facing financial ruin. What he had considered a cushion of wealth quickly turned into a pile of debt.
The Lawsuit: Claims of Inadequate Advice
Blaming his financial advisers for his loss, DeVocht is now suing his investment firm, RBC Dominion Securities, and Grant Thornton LLP, the tax advisory firm he had hired, for allegedly failing to provide him with adequate risk management advice.
DeVocht argues that if he had received better guidance, particularly on risk mitigation strategies, he could have preserved a significant portion of his wealth. His lawsuit, filed in British Columbia’s Supreme Court, claims that:
“But for the defendants’ inadequate advice … the plaintiffs would have preserved a substantial portion of their wealth and implemented financial planning that would not have resulted in the loss of their entire net worth.”
The lawsuit names RBC Wealth Management, Grant Thornton LLP, and a specific RBC employee, who DeVocht claims was supposed to help him plan his finances and make strategic moves. DeVocht is seeking court-ordered damages, as well as legal costs and interest on his lost wealth.
High-Risk Investing: Not Just a Crypto Problem
While the case primarily involves traditional investments in stocks and options, it has sparked conversation about the risks of speculative investing in any asset class, including cryptocurrency. As one X (formerly Twitter) user pointed out, these kinds of financial misadventures aren’t limited to the crypto world, where high volatility and leverage have often led to catastrophic losses. The DeVocht case highlights that the same principles—speculation, leverage, and lack of risk mitigation—can lead to massive losses in any market.
Despite the dramatic outcome of DeVocht’s trades, it’s clear that Tesla’s rise and fall isn’t an isolated example. The broader stock market is filled with tales of investors who struck it rich—only to see their fortunes evaporate in the face of market crashes and financial mismanagement.
What’s Next?
As of now, RBC Wealth Management and Grant Thornton have not yet filed a formal response to the lawsuit, and the case remains before the Supreme Court of British Columbia. For DeVocht, the financial and emotional toll of losing his wealth is clear, but his lawsuit is aimed at recovering at least part of what was lost.
For others watching the case unfold, it serves as a cautionary tale about the risks of highly leveraged trading, especially when margin accounts and complex options strategies are involved. Whether the lawsuit succeeds or not, it underscores the importance of sound financial advice—and the dangers of trading without it.
