On Tuesday, the Securities and Exchange Commission filed a complaint in the Central District of California against David Bunevacz, Mary Hayca Bunevacz, Caesarbrutus LLC, CB Holding Group Corp. and Brutus California Ventures Corp. alleging securities fraud and a Ponzi scheme.
According to the complaint, David Bunevacz is a resident of Calabasas, California and was the president and owner of the defendant companies, based in Wyoming and Nevada. Further, the complaint states that on March 22, 2017, David pleaded guilty to two felony counts of selling securities without qualification in California state court.
The complaint also states that Mary H. Bunevacz is also a resident of Calabasas and is David’s step-daughter. She allegedly held executive-level titles with Caesarbrutus and CB Holding. Additionally, the complaint states that Brutus California Ventures Corp. is a California Corporation registered by Mary.
The SEC purports that from at least April 2017 until at least September 2019, David Bunevacz, Caesarbrutus and CB Holding raised over $32 million from at least 40 investors who were informed that the defendants were engaged in the production and sale of cannabis products, particularly vape pens.
However, the complaint alleges that Caesarbrutus and CB Holding were “sham businesses,” and David misappropriated the vast majority of those funds for personal expenses and to make “Ponzi Payments” to investors for previously issued securities….
