Canadian Company Sues Wynn Resorts for Due Diligence Failures

A Canadian company will be taking Wynn Resorts to court for allowing a big time con artist to gamble with stolen money. The plaintiff is seeking damages, alleging that Wynn did not conduct adequate due diligence into the player in question.

James Bay: Wynn Did Not Fulfill Its Due Diligence Responsibilities
The plaintiff in the case is James Bay Resources, which alleges that Wynn Resorts allowed David Bunevacz, a notorious conman, to gamble millions at its casinos in Las Vegas.

For context, Bunevacz was accused of inducing James Bay Resources to invest some $4.6 million in what later turned out to be a fraudulent scheme. The Canadian company, which specializes in natural resources, later understood that the man had gambled the money away. James Bay Resources was not the man’s only victim, according to the lawsuit.

Bunevacz is a former decathlete star who set a university record for javelin throw at UCLA and later represented the Philippines at several events, once coming close to beating the Philippine javelin record.  

The man eventually gained notoriety for his involvement in illicit activities. In 2022, he pleaded guilty to one count of securities fraud and one count of wire fraud, and was sentenced to 17 years and 6 months in federal prison. The Department of Justice believes that Bunevacz has defrauded investors out of more than $35 million over the years.

Further data alleges that $8.1 million of this money was spent in casinos. Bunevacz also spent some of the money on a luxurious house in Calabasas, trips to Las Vegas and various luxurious items.

Wynn Could Have Prevented the Fraud
In its lawsuit, James Bay Resources alleged that Wynn Resorts had failed to comply with US banking laws and local gaming regulations by not conducting due diligence into Bunevacz.

The Canadian company is certain that if Wynn Resorts had checked Bunevacz’s background, it would have learned of his criminal record. This, in turn, would have prompted the company to investigate the player’s source of funds and potentially identify that his bets were placed with stolen money.

James Bay claimed that if Wynn Resorts had fulfilled its obligations, it would have prevented the resource company’s losses.

Some have suggested a possible connection between the current lawsuit and Wynn’s recent $130 million settlement with the government.

Several weeks later, on the other hand, the operator agreed to pay $70 million to settle a class action lawsuit filed by investors who alleged Wynn Resorts and its executives concealed sexual misconduct allegations.