Wynn Resorts Sued After Fraudster Gambles Millions in Embezzled Funds
A Canadian mining company, James Bay Resources Ltd., along with its president and CEO, Stephen Shefsky, has filed a lawsuit against Wynn Resorts Ltd. The casino operator allegedly failed to properly investigate the source of funds used by a California man to gamble possibly millions at the Wynn Resorts casino in Las Vegas.
The Wynn Resorts casino and hotel in Las Vegas, NV, at night. (Source: Flickr)
LISTEN TO THIS ARTICLE:The Las Vegas Review-Journal reports that the lawsuit centers around former decathlete David Bunevacz, who reportedly lost approximately $3.8 million at Wynn Las Vegas between January 2018 and June 2019. During this time, he was reportedly on probation for fraud.
Related: Wynn Resorts to Settle with Shareholders in Founder's Sexual Misconduct ScandalThe lawsuit alleges that some of the money Bunevacz used for gambling originated from loans provided by Shefsky and his company. Specifically, Shefsky is reported to have extended two personal loans totaling $1.1 million, while James Bay Resources lent $3.5 million to CB Holdings Group Corp. and Brutus California Ventures Corp., both controlled by Bunevacz and his daughter, Mary Hayca Bunevacz, who is also a California resident. James Bay Resources Ltd., a Toronto-based company listed on the Canadian Stock Exchange, is involved in lithium mining operations.
The plaintiffs accuse Wynn Resorts of negligence and unjust enrichment, claiming that the operator had multiple opportunities to investigate Bunevacz's financial background and failed to do so. They argue that a proper investigation would have revealed Bunevacz's criminal record, which included a 2017 conviction on felony charges of selling securities without qualification. Additionally, Bunevacz had a history of state and federal tax liens and civil lawsuits against him, which the plaintiffs contend should have raised suspicions regarding the source of his gambling funds.
Federal regulations mandate that casinos must file suspicious activity reports with the Financial Crimes Network (FinCEN) for all transactions above $10,000. The lawsuit asserts that Wynn Resorts did not adhere to this requirement, thereby allowing Bunevacz to engage in large financial transactions without scrutiny. The plaintiffs claim that had Wynn complied with its statutory and common law obligations, it would have developed reasonable suspicion that the funds Bunevacz was gambling with were likely derived from fraudulent activities.
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Looking the Other Way
Court filings show that Bunevacz and his associates had taken in over $39 million from around 40 investors for a business venture related to cannabis vape pens. However, a complaint issued by the Securities and Exchange Commission (SEC) in April 2022 accused Bunevacz of violating federal securities laws, revealing that he had gambled around $8 million in casinos. It was through this SEC complaint that Shefsky became aware of the extent of Bunevacz's gambling activities.
The lawsuit further alleges that Wynn allowed Bunevacz and his associates to spend large sums of money not only on gambling but also on other expenses at the hotel and casino, including accommodations and services. The plaintiffs argue that Wynn's failure to limit Bunevacz's gambling activities, despite signs that he was a problem gambler, contributed to the financial losses incurred by Shefsky and his company. The lawsuit contends that once Wynn became aware of Bunevacz's gambling addiction, it should have intervened and restricted his ability to continue gambling at the casino.
Bunevacz was sentenced to over 17 years in prison In 2022 for conning investors out of over $45 million. Prosecutors in his case revealed that he had misled investors into believing the money was going toward business expenses for the vape product business. However, much of it was diverted for personal expenses, including his gambling activities.
The lawsuit filed by James Bay Resources Ltd. and Shefsky asks for damages for negligence, as well as consequential damages that are to be determined at trial. The plaintiffs are seeking a trial in Toronto, Ontario.
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