Feds accuse SantaCon organizer of more than $1M wire fraud scheme

New York prosecutors charged an organizer of SantaCon with committing over $1 million of wire fraud, according to a federal indictment unsealed on Wednesday. Stefan Pildes defrauded tens of thousands of individuals and small business owners who participated in the annual Christmas-themed event, according to a Wednesday release from the Department of Justice. Police arrested the 50-year-old on Wednesday.

What is SantaCon? The DOJ described SantaCon as a ticketed event where about 25,000 attendees dress up as Santa Claus and other holiday characters and visit various bars and restaurants participating in the event. SantaCon’s proceeds mainly came from ticket sales and commissions from participating businesses, and Pildes managed the nonprofit organization that organized the annual event.

How did the alleged scheme take place? Pildes took advantage of New Yorkers’ generosity by promoting SantaCon as an event centered in charitable giving, according to U.S. Attorney Jay Clayton. The SantaCon website advertised that ticket sales would be distributed to various charities, and characterized the event as a charitable, non-political Santa Claus convention, according to the DOJ.

It's estimated that Pildes raised more than $2 million in ticket sales and over $675,000 in charitable venue commissions across more than six years. He donated only a small portion of the millions raised before wiring over half of the proceeds to Creative Opportunities Group, according to prosecutors. Pildes controlled the second entity, which had no public connection to SantaCon, and freely used the funds on various financial ventures.

Prosecutors accused Pildes of illegally spending the charity's proceeds on concert tickets, extravagant vacations, and a luxury vehicle, along with extensive renovations to a lakefront property in New Jersey. Pildes repeatedly claimed that he received no compensation from the event, the DOJ said.