Mining Firm Sues Wynn Resorts Over $3.8M in Gambling Losses

What happens when a Canadian mining firm discovers its loans were used to fuel fraudulent gambling at a renowned Las Vegas casino? This is the crux of a recent lawsuit filed by James Bay Resources Ltd. against Wynn Resorts, accusing the casino giant of negligence and unjust enrichment. At the heart of the issue is $3.8 million in losses linked to a California businessman’s fraudulent activity. Curious how this lawsuit could reshape casino accountability? Let’s explore the case details and the potential impact on the gaming industry.

Canadian Mining Firm Files Lawsuit Against Wynn Resorts Over $3.8M Gambling Losses

James Bay Resources Ltd., a Canadian mining company, has filed a lawsuit against Wynn Resorts Ltd., accusing the prominent Las Vegas-based casino of negligence and unjust enrichment after $3.8 million in allegedly fraudulent funds were gambled and lost at the casino. The lawsuit, which was filed in April in the Ontario Court of Justice, claims that Wynn failed to adequately investigate the source of the funds gambled by David Bunevacz, a former decathlete and businessman, from January 2018 to June 2019.

At the core of the lawsuit is the allegation that Wynn Resorts did not perform the necessary due diligence or comply with federal regulations regarding large transactions. James Bay Resources and its CEO, Stephen Shefsky, claim that Bunevacz used loaned money, some of which came directly from Shefsky and his company, to fuel his gambling spree. The Canadian Stock Exchange-listed company had loaned $3.5 million to two companies controlled by Bunevacz, while Shefsky personally contributed an additional $1.1 million.

Wynn Resorts Allegedly Failed to Investigate Bunevacz’s Background

The lawsuit alleges that Wynn Resorts failed to conduct adequate background checks on David Bunevacz, who was on probation during the time he gambled at the casino. Court documents reveal that Bunevacz, despite his polished public profile as a gold medalist at the 1997 Southeast Asian Games, had a criminal history. He had been convicted in 2017 for selling unqualified securities and had amassed a criminal record that included state and federal tax liens as well as civil lawsuits. The plaintiffs argue that Wynn neglected its responsibility to report suspicious activity, particularly for transactions exceeding $10,000, as required under federal regulations.

Stephen Shefsky and James Bay Resources claim that Wynn Resorts had ample opportunity to discover Bunevacz’s criminal background but failed to take necessary precautions. Instead, the casino allowed him to gamble large sums of money, raising concerns about the casino’s role in enabling a problem gambler.

Bunevacz’s Fraudulent Activities and Ongoing Legal Battles

The lawsuit against Wynn Resorts adds yet another chapter to the long history of legal troubles surrounding David Bunevacz. Once a celebrated athlete, Bunevacz was convicted in 2022 for his role in defrauding investors of over $45 million through a fraudulent cannabis vape pen business. Prior to that, he had raised more than $39 million from investors for another fraudulent venture. He is currently serving a 17 1/2-year prison sentence for his involvement in these schemes.

The lawsuit asserts that Wynn Resorts played a role in enabling Bunevacz’s gambling addiction, failing to address signs of compulsive gambling or flag suspicious transactions. “Wynn failed or neglected to make any such inquiries and instead willingly and blindly engaged in transactions with Mr. Bunevacz,” the lawsuit states. James Bay Resources and Shefsky are seeking damages for negligence, as well as consequential damages and interest, arguing that the casino should have been more vigilant.

Implications for the Casino Industry

The lawsuit raises critical questions about the responsibility of casinos in conducting thorough due diligence on high-roller clients. With accusations of negligence tied to federal regulations, this case could set a precedent for how casinos handle large-scale transactions and monitor suspicious activity. The complaint underscores the importance of protecting against fraud and ensuring that casinos do not inadvertently facilitate illegal financial activity.

As the case moves forward in Toronto, many in the gaming and legal industries will be closely watching for potential impacts on casino regulations and compliance standards. With Wynn Resorts yet to comment on the case, the trial promises to bring further scrutiny to how casinos engage with high-profile gamblers and their financial backgrounds.

The lawsuit filed by James Bay Resources against Wynn Resorts highlights the growing need for casinos to adhere strictly to federal regulations regarding suspicious transactions. As this case develops, it could redefine the expectations placed on casinos to perform due diligence on their high-roller clientele. With allegations of negligence and unjust enrichment, the trial is poised to leave a lasting impact on the gaming industry’s approach to fraud prevention and client monitoring.