Published on: June 23, 2026, 08:42 AM.
Updated on: June 23, 2026, 08:42 AM.
- Judge Anne Traum dismissed negligence claims but permitted a Nevada stolen-property lawsuit against Wynn to proceed.
- Plaintiffs assert that Wynn’s VIP treatment of David Bunevacz aided in legitimizing him and spurred further investments.
- Bunevacz incurred losses of approximately $3.76 million at Wynn prior to the collapse of his $45 million cannabis-vape fraud scheme.
A federal judge in Nevada has allowed a portion of a lawsuit against Wynn Las Vegas to continue, preserving a claim that the casino benefited from funds associated with a convicted fraudster’s cannabis-vape Ponzi scheme.
The legal action was initiated by Canadian entrepreneur Stephen Shefsky and his company, James Bay Resources Ltd., who fell victim to the fraud perpetrated by David Bunevacz, a former decathlete, actor, and businessman now serving a 17.5-year federal prison sentence for his fraudulent activities.
Bunevacz, a standout student-athlete at UCLA and gold medalist for the Philippines in the javelin at the 1997 Asian Games, confessed in 2022 to deceiving investors out of $45 million for his fake vape pen enterprise.
During the period from April 2015 to June 2019, prosecutors revealed that Bunevacz misappropriated investor money for personal expenses such as luxury items, travel, and gambling, losing over $8 million in Las Vegas casinos.
Fame in the Philippines
Prior to his legal troubles, Bunevacz enjoyed celebrity status in the Philippines, appearing in several films and being romantically linked to well-known actresses and beauty queens, one of whom later accused him of using her as an unsuspecting drug mule.
In October 2024, James Bay lodged a claim against Wynn Resorts in Ontario, while the present federal case in Nevada was filed on February 25, 2025.
The complaint asserts that in November 2018, Bunevacz and Wynn Las Vegas extended an offer of complimentary accommodation, during which he “wined and dined” Shefsky to solicit additional investments.
A week later, according to the court’s order, James Bay issued a $1.5 million loan, and Shefsky personally advanced $100,000. The plaintiffs claim an additional $3 million was invested in firms controlled by Bunevacz.
The loans were transferred to a Wells Fargo account, which also facilitated “front money” deposits at Wynn, where Bunevacz lost approximately $3.76 million from January 2018 to June 2019, as stated in the complaint.
James Bay contends that the casino accepted funds from Bunevacz while neglecting to verify their origin, despite his 2017 conviction for securities fraud and his high-roller status.
The plaintiffs allege that Wynn’s elite treatment of Bunevacz legitimized his persona and encouraged further investment.
Stolen Property Legislation
Wynn sought to dismiss the lawsuit, and on June 3, US District Judge Anne Traum rejected the plaintiffs’ negligence and unjust-enrichment claims, stating that Nevada’s economic-loss doctrine prevents negligence claims that solely involve lost money.
The unjust-enrichment claim was also dismissed due to inadequate pleading regarding the plaintiffs’ lack of a legal remedy.
However, the judge allowed the claim under Nevada’s stolen-property statute to proceed. This law permits victims of property crimes to sue third parties that receive or possess stolen property when they knew, or reasonably should have known, that the property was stolen.
Judge Traum clarified that her decision was procedural and did not ascertain whether Wynn had actual knowledge that the funds were illicit.
The lawsuit highlights Wynn’s unrelated 2024 non-prosecution agreement with the Justice Department, in which Wynn Las Vegas agreed to forfeit $130.1 million to settle allegations of complicity with unlicensed money-transmitting businesses to facilitate fund transfers for gamblers.
The DOJ characterized this as the largest forfeiture by a casino based on admissions of criminal misconduct.