The organizer behind New York City’s well-known Christmas-themed bar crawls is in hot water, landing on the authorities’ radar after allegedly misusing millions of dollars that were supposed to be donations for charity.
On Wednesday, Stephen Pildes, 50, from Hewitt, New Jersey, was arrested in Manhattan and faces a single charge of wire fraud, linked to claims regarding the handling of Santacon funds, according to federal prosecutors.
Santacon, a yearly event drawing countless festive partygoers to the city in their festive attire, is typically pitched as a ticketed bar crawl, with the proceeds earmarked for various local charitable organizations.
Federal officials state that participating bars and restaurants also contributed between 10 to 25 percent of their earnings from Santacon to the organizers, intending for these funds to benefit charities.
However, from November 2019 until April of this year, authorities allege Pildes diverted funds that were meant for charitable purposes for his own gain.
The indictment indicates that he misappropriated over half of the $2.7 million collected during nearly seven years, using it as a personal “slush fund.” This included substantial spending on concert tickets, fine dining, extravagant vacations, and property improvements.
Prosecutors claim that Pildes contributed only a minuscule portion of the proceeds to charities, siphoning the remainder into his own company, Creative Opportunities Group Inc.
Among the alleged misappropriations, Pildes reportedly used $365,000 to renovate a property by a lake in New Jersey and spent $124,000 renting a luxury apartment in Manhattan.
The legal representative for Pildes has not yet been named in the court documents.
U.S. Attorney Jay Clayton commented on the case, saying, “He exploited New Yorkers’ generous holiday spirit to fund his personal lifestyle.” He further emphasized that fraud remains fraud, no matter the circumstances, and affirmed their commitment to safeguarding New Yorkers from such exploitation.
If found guilty, Pildes could face up to two decades behind bars.
Santacon has yet to provide a response to inquiries regarding the situation.
