James Bay Resources Attempts To Sue Wynn Resorts After Investing In A Conman
In what is perhaps the most bizarre news in the junior mining sector this week, James Bay Resources (CSE: JBR) has filed a statement of claim against Wynn Resorts in an attempt to recover lost funds following an investment in a third party.
The filing follows the company making an investment in businesses operated by convicted conman David Bunevacz for a total figure of US$4.6 million. Those businesses, which James Bay doesn’t specifically reference but are believed to be related to CBD and THC vape pens, turned out to be fraudulent.
Instead of blaming their poor due diligence, James Bay has filed a statement of claim against Wynn Resorts, alleging that Bunevacz took the money James Bay thought it was investing and gambled it away at Wynn’s casino in Las Vegas. James Bay states that “Wynn failed to discharge its duties pursuant to US State and Federal banking laws, Nevada gaming rules, and the common law,” while stating that Wynn failed to conduct adequate due diligence into Bunevacz.
James Bay then further argues that had Wynn Resorts done sufficient due diligence into Bunevacz, it would have discovered his criminal record, investigated the source of funds, and thereby prevented the losses of James Bay.
The statement of claim, which was filed in the Superior Court of Justice, claims that Wynn is liable in negligence, unjust enrichment, and for knowing receipt of trust monies.
David Bunevacz in November 2022 was sentenced to 210 months in prison after fraudulently raising over $45 million from investors who were told they were investing in a firm marketing cannabis vape pens. He pled guilty to one count of securities fraud and one count of wire fraud in connection with the case. He had previously been convicted in 2017 for the unlawful sale of securities.
James Bay Resources last traded at $0.02 on the CSE.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
