Former UCLA decathlete pleads guilty to $28.4 million cannabis-vaping scam

A former UCLA decathlete who competed with the Philippines national team pleaded guilty Monday, July 18, to raising more than $28 million from investors falsely told their funds would be used to finance companies marketing cannabis vape pens, federal authorities said.

David Bunevacz, 53, of Calabasas entered his plea to one count each of securities fraud and wire fraud, according to the U.S. Attorney's Office.

U.S. District Judge Dale S. Fischer set sentencing for Nov. 21. Bunevacz will face up to 40 years behind bars.

Bunevacz solicited investments in various businesses that he claimed were involved in the sale of vape pens containing cannabis products such as CBD oil and THC.

The defendant falsely told at least one investor he had a long-standing relationship with a Chinese manufacturer of disposable vape pens.

Bunevacz also provided investors with forged documents, including bank statements, invoices and purchase orders, to support his claims of the businesses' success and the need for investor funds, according to his plea agreement.

Bunevacz misappropriated the majority of the funds to pay for his own opulent lifestyle, "including a luxurious house in Calabasas, Las Vegas trips, jewelry, designer handbags, a lavish birthday party for his daughter, and horses," papers filed in Los Angeles federal court state.

Federal prosecutors say he spent more than $8.1 million at casinos, paid $218,700 to an event planner in connection with the birthday party, and bought a horse for $330,000.

Some investor funds were used to repay earlier investors in a manner consistent with a Ponzi scheme, prosecutors said.

The investigation revealed Bunevacz took efforts to conceal negative information from investors, such as his 2017 felony conviction for the unlawful sale of securities.

Operating through his cannabis companies, Bunevacz caused investor losses of at least $28.4 million, his plea agreement says.