The suit, filed in April in the Ontario Court of Justice, claims that Wynn failed to investigate the source of $3.8 million gambled and lost by David Bunevacz, a former decathlete and businessman, between January 2018 and June 2019. According to court documents, some of the funds came from personal loans made by Shefsky and James Bay Resources.
James Bay Resources, which is listed on the Canadian Stock Exchange, alleges that it loaned $3.5 million to two companies controlled by Bunevacz. Shefsky himself made an additional $1.1 million in personal loans. The lawsuit contends that Wynn did not conduct adequate background checks on Bunevacz, who was on probation at the time and failed to flag his criminal record, which included state and federal tax liens and civil lawsuits.
"Wynn had ample opportunity to discover Mr. Bunevacz’ criminal record," the plaintiffs argue, asserting that the casino neglected to comply with federal regulations requiring suspicious activity reports for transactions exceeding $10,000.
Bunevacz, a gold medalist at the 1997 Southeast Asian Games, was convicted in 2017 for selling unqualified securities. He later raised more than $39 million from investors for a fraudulent cannabis vape pen business. In 2022, he was sentenced to 17 1/2 years in prison for defrauding investors of over $45 million.
The lawsuit further alleges that Wynn enabled Bunevacz, identified as a "problem gambler," to continue gambling at its casino, despite signs of addiction. "Wynn failed or neglected to make any such inquiries and instead willingly and blindly engaged in transactions with Mr. Bunevacz," the complaint states.
James Bay and Shefsky are seeking damages for negligence, as well as consequential damages and interest, with the trial set to be held in Toronto.
Wynn Resorts has not commented on the lawsuit.
Dingnews.com 11/10/2024