A Bemus Point Disabled Veteran’s organization is being sued by New York State for fraud.
New York Attorney General Letitia James announced Wednesday the lawsuit against Healing for Heroes – A Disabled Veteran’s Retreat and Wooded Oasis, Inc. for allegedly defrauding donors and running a scheme to enrich its leadership and associates while claiming to help veterans.
Healing for Heroes bills itself as a 30-acre outdoor retreat for disabled veterans, but since its founding in 2024, the organization has only hosted four retreats. James said all of those retreats served only board members, their friends, and family. An investigation by the Office of the Attorney General (OAG) found that the owners of Healing for Heroes’ 30-acre property, Board President Thomas Nelsen and Board Secretary and Treasurer Jennifer Milchanoski-Nelsen, rented out the property on Airbnb on at least 32 different occasions in 2024 and 2025, claiming all proceeds would go to their charity. Instead, the OAG alleges couple kept the $33,312.16 in proceeds from the rentals for themselves. The OAG’s investigation also found that Healing for Heroes’ advertising misled donors by promising 100 percent of donations would go to retreats for disabled veterans when almost half of the nearly $100,000 donated to the organization was spent on property maintenance and improvements, such as a bathroom renovation and a new deck for the property, as well as personal shopping, meals, vehicle repair, and gas expenses for board members. On at least one occasion, when veterans who did not have a close relationship with the Nelsens expressed interest in a retreat, they were turned away before they could apply. The Nelsens later claimed the retreats were “unaffordable” and moved to events built around food donated by local businesses, such as “Free Pizza & Fire Night” and “Coffee and Donuts.” These events lasted only a few hours and costs to the Nelsens were negligible.
This fundraising took place without a functioning board of directors, and with no stated conflicts of interest policy. The Nelsens failed to document significant donations of labor, expertise, and materials used to improve the property as required by law. They also failed to report the donations of several vehicles including multiple ATVs and an SUV. Cash and Venmo donations were also improperly documented and deposited in the Nelsens’ personal accounts rather than the charity’s. The OAG’s investigation found that the organization began soliciting donations in 2024 before ever registering as a charity in New York.
Attorney General James alleges that Healing for Heroes and its leaders violated New York’s charity and anti-fraud laws by, soliciting donations illegally, defrauding donors by failing to fulfill their stated mission, failing to register as a charitable organization, and failing to maintain their books and records. Attorney General James also alleges that the organization and its leaders conducted deceptive business practices and false advertising.
Attorney General James is seeking a court order to dissolve the organization and distribute its assets to charities that honor Healing for Heroes’ stated mission. She is also asking the court to bar the Nelsens from soliciting funds or serving in leadership positions for any other New York-based charity. James is also asking the court to recoup damages from the Nelsens and impose penalties, including $1,000 per violation of New York charities law, and $5,000 for each violation of the FAIR Business Practices Act, which protects New Yorkers from unfair, deceptive, or abusive business practices.
Attorney General James encourages New Yorkers who suspect an organization is misrepresenting its work or otherwise operating illegally to file a complaint with OAG’s Charities Bureau.
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