Wynn Resorts Ltd. is in legal trouble yet again, this time being sued for allegedly failing to verify the source of funds of a patron who gambled away nearly $4 million.
The lawsuit, filed by Stephen Shefsky and his company James Bay Resources Ltd., claims that David Bunevacz, who was on probation for investor fraud, gambled freely at Wynn Las Vegas in 2018 and 2019.
Some of the money Bunevacz lost, says Shefsky, came from him and James Bay Resources.
Key Highlights
- Stephen Shefsky and his company loaned David Bunevacz a total of $4.6 million.
- The lawsuit claims Wynn Las Vegas didn’t do financial or background checks on Bunevacz when he gambled millions while on probation.
- Bunevacz was sentenced to 17.5 years in prison in 2022 for defrauding investors out of $45 million.
- This is just the latest in a series of legal problems for Wynn Resorts and Wynn Las Vegas.
Wynn Didn’t Bother With Required Financial Checks
The lawsuit claims that Shefsky made personal loans totaling $1.1 million to two companies controlled by Bunevacz and his daughter: CB Holdings Group Corp. and Brutus California Ventures Corp.
James Bay Resources, of which Stephen Shefsky is president, loaned the companies $3.5 million.
Bunevacz then, the lawsuit alleges, lost $3.8 million at Wynn Las Vegas between January 2018 and June 2019. Shefsky says that much of that money was from the loans.
Federal law requires casinos to file suspicious activity reports to the US Financial Crimes Network for any transaction of more than $10,000.
Shefsky and James Bay Resources claim that Wynn didn’t bother, or else it would have found that Bunevacz was on probation for major financial crimes.
“Wynn had ample opportunity to discover Mr. Bunevacz’ criminal record as well as the existence of multiple state and federal tax liens and civil lawsuits recorded against him – facts that would have given rise to a reasonable suspicion concerning the source of Mr. Bunevacz’ funds.” the lawsuit states.
Defrauded Investors Out of $45 Million
Bunevacz started a vape pen business, raising over $39 million from 40 investors. In 2017, he was convicted of selling securities without qualification.
A federal judge gave him prison time, but he was released on probation. While on probation, he gambled at the Wynn.
Then, in 2022, Bunevacz was sentenced to 17.5 years in prison for defrauding investors who thought they were investing in his vape company out of $45 million.
Also in 2022, the SEC issued a complaint against Bunevacz for federal securities law violations. It was in this complaint that Shefsky discovered that Bunevacz gambled $8 million.
Had Wynn complied with its statutory and common law obligations vis-a-vis Mr. Bunevacz, it would have developed reasonable suspicion that the funds being gambled and spent by the Bunevaczes were the proceeds of fraud.
– Stephen Shefsky v. Wynn Resorts Ltd.
The lawsuit also accused the Wynn of ignoring Bunevacz’ alleged gambling problem.
“….Wynn permitted or encouraged the Bunevaczes to spend money at Wynn’s hotel and casino, the amount and particulars of which are known to Wynn and are not known to the plaintiffs,” the lawsuit contends.
“Had Wynn complied with its statutory and common law obligations vis-a-vis Mr. Bunevacz, it would have developed reasonable suspicion that the funds being gambled and spent by the Bunevaczes were the proceeds of fraud.”
Wynn Constantly In Legal Trouble
This is just the latest in a series of legal issues for Wynn over the last couple months.
In September, Wynn Resorts settled a lawsuit with the federal government for $130 million, ending a case regarding Wynn Las Vegas’ use of illegal payment businesses.
From 2014, Wynn used unlicensed money-transmitting businesses to deal with foreign high rollers. This practice allowed the casino to skirt financial transfer and reporting regulations.
In August of this year, Wynn settled a class-action lawsuit brought by shareholders in 2018 for $70 million. Steve Wynn, the company’s founder and former CEO, resigned in 2018 over employee sexual harassment accusations.
Shareholders sued, claiming the company’s stock price dropped because of both the allegations and the company’s failure to do anything about them.
Sources
https://www.reviewjournal.com/business/casinos-gaming/lawsuit-wynn-resorts-failed-to-prevent-man-from-gambling-millions-in-loaned-funds-3185656/
https://www.onlineunitedstatescasinos.com/news/wynn-resorts-settlement-illegal-payments-400747/
