On Tuesday, federal authorities in the state’s Central District arrested 53-year-old David Joseph Bunevacz for wire fraud, alleging he conned more than $37 million from investors to fund cannabis vape pen business that didn’t exist, then used the money to support his lavish lifestyle instead.
In a PowerPoint presentation, Bunevacz allegedly told one investor his company had a “strategic relationship” with a Chinese manufacturer of vape pens and that he sourced “raw, pesticide-free” oil from multiple vendors before sending it to a lab “that infuses the flavors into the oil with our proprietary custom process that renders the vape flavoring smooth and discrete.” Although the affidavit says he provided elaborate, though false, details to investors, Bunevacz meanwhile allegedly omitted his own unflattering history, including a prior state felony conviction relating to the sale of securities.
After Bunevacz told investors their funds would be used for business expenses, the affidavit alleges he turned around and spent the money on his own swanky lifestyle: a luxurious house in Calabasas, trips to Las Vegas, jewelry, designer handbags, a lavish birthday party for his daughter, and yes — horses.
The affidavit further claims he forged documents, including bank statements, legal settlements — to cover his own history of litigation, feds say — and fabricated invoices and purchase orders to make it seem like he was running real businesses.
The affidavit alleges that, according to Filipino media outlets, the couple used to live there, running a “high end beauty clinic,” before being driven out of the business — and the country — amid accusations that they’d scammed their partners out of money.
Joshua Ritter, a lawyer for Bunevacz, says his client is determined to fight the charges.