The High-Stakes Mining Scandal: Wynn Resorts Sued by Canadian CEO

Canadian Mining Company Sues Wynn Resorts for Negligence Over $5 Million Gambled by Fraudster

Editorial Team (ET)July 9, 2025

In a legal dispute that underscores the serious responsibilities of casinos in handling large sums of money, James Bay Resources Ltd. and its president, Stephen Shefsky, have filed a lawsuit against Wynn Resorts Ltd. The suit alleges that the Las Vegas-based casino failed to investigate the origins of millions of dollars gambled and lost by a California man, David Bunevacz. The case shines a spotlight on the casino industry's duty to uphold federal financial regulations, sparking concerns over negligence and unjust enrichment.

Allegations Against Wynn Resorts

At the core of the lawsuit is the claim that Wynn Resorts neglected its responsibility to investigate the source of funds gambled at its Las Vegas location by David Bunevacz, a former athlete with a checkered financial and criminal history. Between January 2018 and June 2019, Bunevacz is reported to have lost around $5 million at the casino, a substantial portion of which allegedly came from loans provided by Shefsky and James Bay Resources Ltd.

The plaintiffs argue that Wynn failed to act on red flags that should have triggered a deeper inquiry into the origins of the money. Bunevacz had a criminal record and was facing multiple lawsuits, which, according to the lawsuit, should have raised reasonable suspicion. Instead, Wynn allowed Bunevacz to gamble freely, benefiting financially from his losses.

Loans From James Bay Resources and Shefsky

James Bay Resources, a Toronto-based mining company listed on the Canadian Stock Exchange, and its president Stephen Shefsky, claim they provided $4.6 million in loans to Bunevacz’s companies — CB Holdings Group Corp. and Brutus California Ventures Corp. Of this amount, $3.5 million came from James Bay, while Shefsky personally loaned $1.1 million. These loans were intended for legitimate business purposes, but instead, Bunevacz allegedly used a large portion to gamble at Wynn Las Vegas.

Wynn Resorts’ Legal Obligations Under Federal Law

Casinos in the United States are required by federal law to report any suspicious financial activities to the U.S. Financial Crimes Network (FinCEN). Transactions over $10,000 must be documented through suspicious activity reports (SARs), a measure aimed at curbing money laundering and financial fraud. The lawsuit claims that Wynn failed to meet this obligation, neglecting to file SARs related to Bunevacz’s gambling activities despite clear signs of irregularities.

David Bunevacz: A Gambler With a Troubled History

David Bunevacz, a former decathlete who represented the Philippines in international competitions, transitioned into business after his athletic career. However, his business ventures were tainted by legal trouble. In 2017, Bunevacz was convicted in the U.S. District Court in California for selling securities without qualification and was sentenced to prison. Despite being on probation between January 2018 and June 2019, he continued to gamble heavily at Wynn Las Vegas.

The lawsuit labels Bunevacz as a “problem gambler” or gambling addict, suggesting that Wynn should have imposed limits on his gambling activities, particularly given his history of addiction and criminal behavior.

SEC Investigation and Fraudulent Activities

In addition to his gambling activities, Bunevacz was involved in a major fraud scheme. In April 2022, the U.S. Securities and Exchange Commission (SEC) filed a complaint against him for raising over $39 million from investors for a vape pen business. The SEC’s investigation revealed that Bunevacz misused a significant portion of the funds for personal expenses, including gambling. According to the lawsuit, Shefsky learned that Bunevacz had spent approximately $8 million in casinos, further bolstering the plaintiffs' case against Wynn.

Claims of Negligence and Unjust Enrichment

The plaintiffs allege that Wynn Resorts was negligent in failing to investigate Bunevacz’s financial background and the source of the funds he gambled. They argue that Wynn had ample opportunity to uncover Bunevacz’s criminal record, multiple tax liens, and civil lawsuits, all of which should have raised concerns about the legitimacy of his gambling funds. By allowing Bunevacz to continue gambling without any meaningful inquiry, the plaintiffs claim that Wynn unjustly enriched itself at their expense.

The concept of unjust enrichment centers on the idea that Wynn profited from funds that were fraudulently obtained, to the detriment of James Bay Resources and Shefsky. The lawsuit argues that had Wynn fulfilled its regulatory obligations, it would have identified the fraudulent nature of the funds and prevented Bunevacz from gambling millions.

Compliance Failures and Potential Industry Impacts

This case brings into focus the compliance responsibilities of casinos, particularly when it comes to monitoring large financial transactions. Wynn’s alleged failure to comply with federal regulations not only puts the company at risk of financial penalties but also raises broader concerns about the casino industry’s role in preventing financial crimes. If the plaintiffs succeed in their claims, the case could set a precedent for stricter enforcement of compliance rules across the industry.

Legal Proceedings and Expected Trial in Ontario

The lawsuit is currently being heard in the Ontario Court of Justice, with the plaintiffs seeking damages for negligence and unjust enrichment. James Bay Resources and Shefsky are requesting compensation for the losses incurred as a result of Bunevacz’s gambling, as well as consequential damages and interest. A trial in Toronto is expected, where the full extent of Wynn’s compliance failures will be examined.

Conclusion

The lawsuit against Wynn Resorts raises serious questions about the casino's adherence to federal financial regulations and its responsibility to investigate suspicious activities. As the legal battle unfolds, Wynn faces significant reputational and financial risks, while the outcome could have far-reaching consequences for the casino industry at large. The case serves as a stark reminder that casinos must remain vigilant in ensuring that the funds used in their establishments come from legitimate sources, or they risk becoming complicit in financial fraud.

Source: Richard N. Velotta Las Vegas Review-Journal - https://www.reviewjournal.com/business/casinos-gaming/lawsuit-wynn-resorts-failed-to-prevent-man-from-gambling-millions-in-loaned-funds-3185656/

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