The organizer behind SantaCon, a Santa Claus-themed pub crawl that raises cash for native charities, is being charged with defrauding ticket-buyers and institution house owners.
On Wednesday, 50-year-old Stefan Pildes was arrested in New York and charged with wire fraud, which carries a most sentence of 20 years in jail.
Prosecutors declare Pildes, who served because the president of and managed the nonprofit entity that organizes the occasion referred to as Participatory Security Inc. (PSI), diverted funds that have been meant to go to charity to his personal accounts.
Per the indictment, from November 2019 by April 2026, Pildes allegedly defrauded tens of 1000’s of individuals who purchased tickets to SantaCon.
“As alleged, Stefan Pildes promoted SantaCon as an occasion grounded in charitable giving. However as a substitute of donating the thousands and thousands of {dollars} he raised, he ran his personal con recreation,” Jay Clayton, U.S. legal professional for the Southern District of New York, mentioned in a press launch.
“He took benefit of New Yorkers’ beneficiant vacation spirit to finance his way of life by private bills, large and small,” Clayton continued. “Irrespective of the way you costume it up, fraud is fraud. We’re dedicated to defending New Yorkers from those that exploit their enthusiasm and generosity.”
In line with prosecutors, Pildes saved many of the occasion’s earnings, which come primarily from promoting tickets, in addition to from institutions that host the occasion, for himself. The organizer promoted the occasion on SantaCon’s web site, which defined that donations can be cut up between numerous charities. Contributions from institutions have been categorized as a “charitable fee” or “donation” of round 10% and 25% of gross sales.
The grievance alleges that Pildes’s donations accrued from 2019 to 2024 added as much as $2 million in ticket gross sales and over $675,000 in charitable commissions, however that Pildes used the cash to fund his personal luxurious way of life. It alleged that he diverted funds to pay for renovations on his lakefront New Jersey property, holidays, a luxurious automobile, and extra.
James C. Barnacle Jr., assistant director accountable for the FBI’s New York Metropolis subject workplace, mentioned: “Stefan Pildes, the president of SantaCon, allegedly pocketed over half of the proceeds generated by his nonprofit to make private purchases. Pildes allegedly stole Christmas from tens of 1000’s of victims and disadvantaged native charities of greater than 1 million {dollars}. The FBI continues to root out Scrooges that greedily exploit the goodwill of New Yorkers.”
Curiously, it’s not the primary time SantaCon has raised eyebrows. A 2023 Gothamist investigation revealed that from 2014 to 2022, lower than a fifth of the occasion’s earnings went to charity. It additionally discovered that greater than a 3rd of the cash went to folks and teams linked to the annual Burning Man pageant.
On the time, Pildes confirmed the expenditures, telling the outlet that the funds have been a part of a zero-interest mortgage that was repaid.
“Our mission is to convey extra artwork out into the world,” Pildes mentioned. “I wish to proceed to see extra artistic retailers and alternatives and extra folks in costume and extra cheer being unfold.”
