{"id":51434,"date":"2022-11-21T20:54:42","date_gmt":"2022-11-22T04:54:42","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=51434"},"modified":"2022-11-21T20:54:42","modified_gmt":"2022-11-22T04:54:42","slug":"man-sentenced-to-more-than-17-years-for-scamming-cannabis-vaping-business-investors-of-35-2-million","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=51434","title":{"rendered":"Man Sentenced to More Than 17 Years for Scamming Cannabis Vaping Business Investors of $35.2 Million"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n

\"FBIA former UCLA decathlete who also competed with the Philippines national team was sentenced Monday to 17 years and six months in federal prison for fraudulently raising more than $45 million from investors, officials stated.<\/span><\/p>\n

They were told their funds would finance companies marketing cannabis vape pens.<\/span><\/p>\n

\u00a0\u00a0 U.S. District Judge Dale S. Fischer sentenced David Joseph Bunevacz, 53, of Calabasas. Judge Fischer also ordered him to pay $35.2 million in restitution. <\/span><\/p>\n

At Monday’s sentencing hearing, Judge Fischer noted that Bunevacz had \u201cpreyed on individuals who believed he was their friend\u201d and that the \u201cseriousness of [his] conduct cannot be captured in mere dollars and cents.\u201d<\/span><\/p>\n

Judge Fischer also found that Bunevacz continued to perpetrate his scheme while serving probation for a state court conviction, concluding, \u201cNot even a criminal conviction and the threat of jail convinced [Bunevacz] to become a law-abiding citizen.\u201d<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Bunevacz plead guilty on July 18 to one count of securities fraud and one count of wire fraud. He has been in federal custody since his arrest in this case on April 5.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Going back to 2010, Bunevacz created various business entities, with names such as CB Holding Group Corp. and Caesarbrutus LLC, that he claimed were involved in the cannabis industry and the sale of vape pens containing cannabis products such as CBD oil and THC.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \"\" Bunevacz falsely told at least one investor he had a longstanding relationship with a Chinese manufacturer of disposable vape pens and he obtained \u201craw pesticide-free oil\u201d that was sent to a \u201clab that infuses the flavors into the oil with our proprietary custom process that renders the vape flavoring smooth and discrete,\u201d according to court documents. <\/span><\/p>\n

Bunevacz also provided investors with forged documents \u2013 such as bank statements, invoices, and purchase orders \u2013 to support his claims of the businesses\u2019 success and the need for investor funds.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Instead of using the funds to finance business operations \u2013 and while some of his victims were suffering severe financial hardship \u2013 Bunevacz misappropriated the vast majority of the funds to pay for his opulent lifestyle, including a luxurious house in Calabasas, Las Vegas trips, jewelry, designer handbags, a lavish birthday party for his daughter, and horses.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To create the false appearance that his companies were engaged in legitimate business activities, Bunevacz registered various shell companies, including several with names similar or identical to those of legitimate cannabis businesses. <\/span><\/p>\n

To conceal his control of these shell companies and the bank accounts associated with them, Bunevacz listed other individuals, including his stepdaughter, as the corporate officers of the shell companies.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Bunevacz\u2019s blog touts his success as a former decathlete who competed for the Philippines, and his wife and daughter appeared in a reality television show. <\/span><\/p>\n

Despite Bunevacz\u2019s promotion of his background, Bunevacz made efforts to conceal negative information from investors, such as his 2017 felony conviction for the unlawful sale of securities, according to an affidavit submitted in support of a criminal complaint in this case.<\/span><\/p>\n

After one investor uncovered a lawsuit against Bunevacz, Bunevacz emailed a counterfeit version of the settlement agreement to falsely make it appear that he had been paid $325,000 as part of a settlement. <\/span><\/p>\n

In reality, Bunevacz had agreed to pay $325,000 to settle the claim.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Operating through his cannabis companies, Bunevacz raised approximately $45,227,266 from more than 100 victim investors, according to the government\u2019s filing. <\/span><\/p>\n

Judge Fischer found that Bunevacz caused losses of approximately $35.2 million.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cThe sense of violation, the assault on personal dignity, and the lasting trauma [Bunevacz] has caused are very much reminiscent of the harm typically associated with violent crimes,\u201d prosecutors argued in a sentencing memorandum. \u201cAnd, with well over a hundred victims, [Bunevacz] caused these harms at a scale rarely seen.\u201d<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI, IRS Criminal Investigation, and the Los Angeles County Sheriff\u2019s Department investigated this matter. <\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section prosecuted this case.<\/span><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

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