Published on: October 10, 2024, 10:32h.
Last updated on: October 10, 2024, 10:39h.
Wynn Resorts has been implicated in a lawsuit filed in Ontario’s Superior Court of Justice, alleging that the company’s Las Vegas casinos failed to conduct proper due diligence on customers and ascertain the source of a player’s funds.
Plaintiff Stephen Shefsky, president and CEO of James Bay Resources, a Toronto-based oil and gas exploration firm, claims he invested $4.6 million in a cannabis startup in early 2017. Shefsky alleges that a significant portion of his invested funds in CB Holdings Group and California Ventures Corp., entities registered respectively in Nevada and California, were instead gambled inside Wynn and Encore Las Vegas.
Shefsky alleges defendant David Bunevacz lost an estimated $3.8 million at the Strip casinos, with some of the money originating from Shefsky’s investment. The complaint contends that Wynn Resorts failed to investigate the source of Bunevacz’s funds as mandated by the US Financial Crimes Enforcement Network (FinCEN) and the Bank Secrecy Act.
Wynn has not responded to the accusations yet. It remains uncertain whether the casino filed Currency Transaction Reports or Suspicious Activity Reports related to Bunevacz’s gambling activities.
Defendant Incarcerated
In March 2017, Bunevacz pleaded guilty to two felony counts of selling securities without proper qualification in California state court. The court agreed to a suspended sentence contingent on Bunevacz paying a total of $273K in restitution to two victims.
Bunevacz allegedly used other investors’ funds to partially repay the victims. Shefsky claims that Bunevacz then continued his fraudulent scheme under CB Holdings and California Ventures.
Shefsky’s lawsuit asserts that Bunevacz engaged in extensive gambling and lost approximately $3.8 million at the Wynn casinos between January 2018 and June 2019.
“Wynn failed to make any inquiries and instead knowingly engaged in transactions with Mr. Bunevacz,” stated Shefsky’s legal team.
Wynn allowed or even encouraged the Bunevaczs to spend money at Wynn’s hotel and casino, details of which are known to Wynn but not to the plaintiffs,” the complaint continued. “Had Wynn fulfilled its legal obligations towards Mr. Bunevacz, it would have had reason to suspect that the funds used for gambling were obtained through fraud.”
In April 2022, the Securities and Exchange Commission filed a complaint against Bunevacz and his stepdaughter Mary Bunevacz, accusing them of securities fraud and operating a Ponzi scheme. Bunevacz was sentenced to 17.5 years in federal prison and ordered to pay over $35.2 million in restitution.
Federal prosecutors estimate that Bunevacz and his daughter defrauded investors of more than $45 million.
Criminal Preyed on Friends
The US Attorney’s Office for the Central District of California alleges that Bunevacz deceived investors by promising high returns and exclusive access to the rapidly growing cannabis industry. Bunevacz “exploited individuals who believed he was their friend” by claiming connections with Chinese manufacturers producing an exceptional vape pen with smooth flavoring.
In reality, Bunevacz used their money for trips to Las Vegas, purchasing a multi-million-dollar home in California’s Calabasas, as well as luxury items like jewelry, designer handbags, and a $300K racehorse.
“The violation, the damage to personal dignity, and the lasting trauma [Bunevacz] caused are similar to the harm typically associated with violent crimes,” argued federal prosecutors in a sentencing memo. “With well over a hundred victims, [Bunevacz] inflicted these harms on a scale rarely seen.”
Shefsky is seeking compensation and financial damages through a jury trial in Toronto.