Published on: October 3, 2024, 05:17h.
Last updated on: October 3, 2024, 05:17h.
James Bay Resources Ltd., a Canadian natural resources company, has initiated legal action in Ontario’s Superior Court of Justice against Wynn Resorts — the latest legal step in the ongoing saga of fraudster David Bunevacz.
The Toronto-based company stated it was “enticed by Bunevacz” to invest $4.6 million in ventures that were later revealed to be fraudulent. Instead of utilizing James Bay’s funds for legitimate purposes, Bunevacz wasted that money and other investors’ funds at Las Vegas casinos, including Wynn.
Wynn failed to fulfill its obligations under US State and Federal banking laws, Nevada gaming rules, and common law to conduct adequate due diligence on Bunevacz. Had it done so, it would have uncovered Bunevacz’s criminal background, investigated the source of his funds, and thus prevented the Plaintiffs’ losses,” according to a statement released by James Bay.
The Canadian company did not disclose the amount it is seeking from Wynn Resorts.
Who Is David Bunevacz?
Bunevacz is a former UCLA decathlete who represented the Philippines in various international track and field competitions. While he achieved celebrity status in the country, it was gained through questionable means.
In 2022, he received a 17.5-year federal prison sentence after pleading guilty to securities fraud and wire fraud. The Department of Justice (DOJ) alleged he defrauded investors of $35 million, with $8.1 million spent in casinos.
“Instead of financing business operations with the funds and while some victims were facing financial hardships, Bunevacz misused most of the money for his own luxurious lifestyle, including a extravagant house in Calabasas, Las Vegas trips, jewelry, designer handbags, a lavish birthday party for his daughter, and horses,” stated the DOJ in November 2022.
He used cannabis and vape pen businesses to attract unsuspecting investors, and it is estimated that his fraudulent activities exceeded $35 million. The IRS indicated that the scammer raised between $37,166,737 and $45,068,227 from at least 10 investors, resulting in losses exceeding $28.4 million.
Timing of James Bay Wynn Suit Interesting
James Bay’s legal action against Wynn coincided with Wynn Las Vegas agreeing to pay $130.13 million to settle allegations of improper money transfer practices. This marked the largest fine ever imposed on a US casino by the DOJ.
The case against Wynn focused on the company’s money transfer procedures involving certain Chinese clients. The government did not mention Bunevacz in relation to that investigation.
While James Bay did not specify the dates on which Bunevacz gambled at Wynn, the Canadian company argues that Wynn should have conducted due diligence on him. This process could have revealed his previous convictions for felonies committed prior to the cannabis scheme, according to James Bay. In 2016, the Los Angeles County District Attorney’s Office filed nine felony charges against him, including grand theft and securities fraud. He pleaded no contest the following year and was sentenced to three years probation.