New York Attorney General Letitia James sued a Chautauqua County veterans charity Wednesday, alleging its leaders diverted donations and rental proceeds for personal use while claiming to provide free retreats for disabled veterans.
The lawsuit targets Healing for Heroes and board leaders Thomas Nelsen and Jennifer Milchanoski-Nelsen, who own the 30-acre Bemus Point property used by the organization.
The attorney general's office alleges the couple rented the property through Airbnb at least 32 times in 2024 and 2025 and kept $33,312.16 in proceeds despite telling renters the money would support the charity. Investigators also alleged nearly half of almost $100,000 in donations paid for property improvements, shopping, meals, vehicle repairs and gas.
Healing for Heroes held four retreats during those two years, all attended by board members and their friends or relatives, according to the lawsuit. The state alleges other veterans were turned away before they could apply.
James is asking a court to dissolve the organization, distribute its assets to charities serving veterans and bar the Nelsens from fundraising or leading another New York charity. The lawsuit also seeks damages and civil penalties.
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The state alleges Healing for Heroes solicited donations before registering as a charity and violated state charity, anti-fraud and false advertising laws. The allegations have not been adjudicated.
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