New York Attorney General Letitia James has sued a Chautauqua County charity, alleging its leaders misused donations and operated the organization to benefit themselves rather than disabled veterans.
The lawsuit, filed against Healing for Heroes – A Disabled Veteran’s Retreat and Wooded Oasis Inc., alleges the Bemus Point organization raised nearly $100,000 from donors while failing to provide the veteran retreats it advertised.
The charity was founded in 2024 and promoted a 30-acre wooded property as a retreat for disabled veterans.
Charity allegedly used property as personal vacation rental
According to the attorney general's office, Healing for Heroes held only four retreats in 2024 and 2025. All four were attended exclusively by board members, their friends or family, the lawsuit alleges.
The investigation
also found that the property's owners, board President Thomas Nelsen and board Secretary and Treasurer Jennifer Milchanoski-Nelsen, rented the property on Airbnb at least 32 times during 2024 and 2025.
The couple allegedly told renters that 100% of the proceeds would benefit Healing for Heroes. Instead, they deposited $33,312.16 from the rentals into their personal account, according to the lawsuit.
Donations allegedly spent on property improvements, personal expenses
The attorney general's office alleges that nearly half of the organization's roughly $100,000 in donations was spent on property maintenance and improvements, including a bathroom renovation and new deck.
Other expenses allegedly included personal shopping, meals, vehicle repairs and gasoline for the Nelsens and other board members.
The lawsuit also alleges that cash and Venmo donations were improperly deposited into personal accounts and that the organization failed to properly document donations of labor, materials and vehicles.
Healing for Heroes also allegedly began soliciting donations in 2024 before registering as a charity in New York.
Attorney general seeks to dissolve charity
James is asking a court to dissolve Healing for Heroes and distribute its remaining assets to charities that provide therapeutic retreats and other services for disabled veterans.
She is also seeking to bar the Nelsens from soliciting donations or serving in leadership positions for other New York charities.
The attorney general is seeking damages from the Nelsens and civil penalties for alleged violations of New York's charity and consumer protection laws.
“Our veterans have sacrificed so much for this country, and they deserve real supportive services when they return to civilian life,” James said in a statement. “Healing for Heroes exploited veterans’ service and betrayed the trust of their donors ... to enrich themselves and their friends.”
This article originally appeared on Rochester Democrat and Chronicle: Veterans charity accused of using donations for vacations, personal expenses in NY lawsuit
