Wynn Resorts will continue to face part of a lawsuit brought by a Canadian mining executive who alleges the casino company accepted gambling funds connected to an investment fraud scheme.
Two Years and Counting
A federal judge recently ruled that a few of the claims in the case can move forward, signaling the latest development in a legal dispute that has been ongoing for nearly two years.
The lawsuit, filed by Toronto based James Bay Resources Ltd. and its president, Stephen Shefsky, claims millions of dollars lost at Wynn Las Vegas by former athlete David Bunevacz included funds that were improperly obtained from them through business loans.
US District Judge Anne Traum granted part of Wynn’s request to dismiss the lawsuit but declined to throw out the entire case. While the judge dismissed claims of negligence and unjust enrichment, she allowed a claim related to the alleged receipt of stolen funds to proceed.
According to court filings, Shefsky personally loaned approximately $1.1 million while James Bay Resources provided an additional $3.5 million to companies controlled by Bunevacz and his daughter, Mary Hayca Bunevacz. The loans were made between 2018 and 2019.
The lawsuit alleges that some of those funds ultimately ended up at Wynn Las Vegas, where Bunevacz reportedly lost an estimated $3.8 million gambling.
Federal Fraud Allegations
Bunevacz, a former UCLA decathlete who also competed internationally for the Philippines, later became the subject of federal fraud allegations. Prosecutors accused him of operating a Ponzi-style scheme while seeking investors for a cannabis vaping business. He was eventually convicted in the case.
The plaintiffs argue that Wynn should have taken greater steps to investigate the source of the money being used for gambling and should have reported suspicious activity to federal authorities.
Specifically, the lawsuit accuses the casino operator of failing to alert the Financial Crimes Enforcement Network, commonly known as FinCEN, which is responsible for monitoring and combating money laundering and other financial crimes in the United States.
The decision of the court does not establish if Wynn is liable, but allows a key portion of the case to carry on through the legal process, where both sides will have the chance to present evidence.