Wynn Resorts Ltd. is the defendant in a lawsuit filed by James Bay Resources Ltd., a Canadian mining company, and its CEO, Stephen Shefsky. The lawsuit accuses the luxury gaming company of unjust enrichment and negligence after a businessman gambled away money loaned to him by the plaintiffs.
As this case unfolds, it’s a reminder that both casinos and top sportsbooks must carefully navigate regulations designed to prevent fraud and money laundering, ensuring due diligence in monitoring large transactions.
Bad Bet
A California businessman and former decathlete representing the Philippines, David Bunevacz, was out on bail after being convicted in March 2017 on felony charges of selling securities without qualification. However, according to court documents, he was not content to keep his head down and avoid trouble.
In fact, between January 2018 and June 2019, Bunevacz allegedly gambled away $3.8 million at the Wynn, $3.5 million of which was loaned by James Bay Resources Ltd. and including a personal loan by its CEO, Stephen Shefsky, to two companies controlled by Bunevacz.
It wasn’t until April 2022, when the U.S. Securities and Exchange Commission issued a complaint against David Bunevacz for alleged violations of federal securities laws, that Shefsky became aware that Bunevacz had lost approximately $8 million gambling at various casinos.
Shortly thereafter, Bunevacz was sentenced to 17 ½ years in prison for fraudulently raising more than $45 million from investors who believed their money was being used to fund ventures marketing cannabis vape pens.
But the suit in question, filed in April at the Ontario Court of Justice, states Wynn did not do its due diligence in vetting Bunevacz and failed to comply with federal regulations that require casinos to report suspicious activity to the U.S. Financial Crimes Network for transactions over $10,000.
Is Wynn at Fault?
The lawsuit shines a spotlight on to what extent a casino can involve itself in someone’s personal life and when it is appropriate to breach the boundary between a hospitality host and a financial inquisitor. According to the legal action filed against Wynn Resorts, the company did not do enough to vet Bunevacz and was negligent in its financial reporting.
“Wynn had ample opportunity to discover Mr. Bunevacz’s 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’s funds,” the lawsuit states.
Court documents refer to Bunevacz as “a problem gambler” and allege Wynn personnel should have established him as such and prohibited him from gambling at their establishments.
The lawsuit states, “Wynn failed or neglected to make any such inquiries and instead willingly and blindly engaged in transactions with Mr. Bunevacz. In addition to the above-mentioned gambling, 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.
“Had Wynn complied with its statutory and common law obligations vis-à-vis Mr. Bunevacz, it would have developed reasonable suspicion that the funds being gambled and spent by the Bunevaczes were the proceeds of fraud.” The case has yet to be adjudicated, and Wynn representatives have not commented on the lawsuit.
Calculators
