CBD Oil Vape Pen Ponzi Scheme Netted $32 Million, SEC Alleges

A California man and his companies raised more than $32 million through a cannabidiol oil vape pen Ponzi scheme and used investor funds for gambling, the SEC alleges in a federal court in the state.

David J. Bunevacz told investors his businesses produced and sold vape pens containing CBD-infused oils and falsely claimed he had “binding purchase orders for large quantities” of pens, according to the Securities and Exchange Commission’s complaint in the U.S. District Court for the Central District of California.

He allegedly used Caesarbrutus LLC and CB Holding Group Corp. to offer and sell securities to at least ...