LOS ANGELES – A former decathlete from the University of California, Los Angeles who once competed for the Philippine national team was sentenced to 210 months in prison today for fraudulently raising over $45 million from investors. These investors were told their funds would be used to support a company marketing cannabis e-cigarettes.
David Joseph Bunevacz, 53 years old from the city of Calabasas, has been sentenced by US District Judge Dale S. Fischer to pay $35,267,851 in restitution. During today's sentencing hearing, Judge Fischer noted that Bunevacz had "bullied those who thought he was their friend," and that the severity of his actions cannot be measured solely in monetary terms.
Judge Fischer also found that even during the probationary period following his conviction in state court, Bunevacz continued to carry out his plan and concluded that "neither criminal conviction nor threat of imprisonment could persuade [Bunevacz] to become a law-abiding citizen.
On July 18th, Bunevacz admitted to committing securities fraud and telecommunications fraud. He has been in federal custody since his arrest on April 5th in connection to this case.
Going back to 2010, Bunevacz created various business entities, including CB Holding Group Corp. and Caesarbrutus LLC, which he claimed were involved in the marijuana industry and the sale of electronic cigarettes containing marijuana products such as CBD oil and THC.
Bunevacz reportedly lied to at least one investor about his supposed long-term partnership with a Chinese manufacturer of disposable e-cigarettes. According to court documents, he claimed to have obtained "pesticide-free raw material oil" that was sent to a laboratory for flavor infusion using a "proprietary custom process" to make vape flavoring smooth and discrete. He also provided fake documents such as bank statements, invoices, and purchase orders to support his claims of the company's success and need for investor funding.
Bunevacz did not use these funds to provide financial support for the operation of his business - despite the fact that some of his victims are currently experiencing serious financial difficulties. Instead, he diverted the vast majority of the funds to finance his own luxurious lifestyle, which includes a mansion in Calabasas, trips to Las Vegas, expensive jewelry and designer handbags, extravagant birthday parties for his daughter, and horses.
To create the appearance of conducting legitimate business activities for his company, Bunevacz registered various shell companies, including several with similar or identical names to legitimate marijuana businesses. To conceal his control over these shell companies and related bank accounts, Bunevacz listed other individuals, including his stepdaughter, as executives of the shell companies.
Bunevacz's blog praises his success as a former decathlete competing in the Philippines, and highlights appearances of his wife and daughter on a reality show. According to sworn statements submitted in support of the criminal prosecution, despite promoting his background, Bunevacz made efforts to conceal negative information from investors, such as his conviction for a felony in 2017 for illegally selling securities.
After an investor discovered a lawsuit against Bunevacz, the latter sent a forged version of a settlement agreement via email, claiming he had received $325,000 as part of the settlement. However, in reality, it was Bunevacz who agreed to pay $325,000 to settle the claim.
According to government records, Bunevacz raised approximately $45,227,266 from over 100 victim investors through his marijuana company. Judge Fischer found that Bunevacz caused approximately $35,267,851 in losses.
A prosecutor argued in a sentencing memorandum that "the violation of personal dignity, emotional harm, and lasting trauma caused by [Bunevacz] are reminiscent of the harm typically associated with violent crimes." "Furthermore, [Bunevacz] victimized over 100 individuals, causing harm on a scale rarely seen.
The Federal Bureau of Investigation, the Criminal Investigation Division of the Internal Revenue Service, and the Los Angeles County Sheriff's Department conducted an investigation into the matter. The Securities and Exchange Commission provided significant assistance. Assistant U.S. Attorney Alexander B. Schwab of the Major Frauds Section filed charges in this case.
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