Attorney General James Sues Purported Veterans’ Charity for Defrauding Donors for Personal Gain

August 12, 2026

NEW YORK - New York Attorney General Letitia James today sued Healing for Heroes - A Disabled Veteran's Retreat and Wooded Oasis, Inc. (Healing for Heroes) for defrauding donors and running a callous scheme to enrich its leadership and associates while claiming to help veterans. Healing for Heroes billed itself as an outdoor retreat for disabled veterans, but since its founding in 2024, the organization has only hosted four retreats, all of which served only board members and their friends and family-essentially using the charity to fund their own vacations. 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 couple kept the $33,312.16 proceeds from the rentals for themselves. The OAG's investigation also found that 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.

Attorney General James is seeking a court order to dissolve the organization and distribute its assets to charities that actually honor Healing for Heroes' stated mission. Attorney General James is also asking the court to bar the Nelsens from soliciting funds or serving in leadership positions for any other New York-based charity. Attorney General James also asks the court to recoup damages from the Nelsens and impose civil penalties for violations of the FAIR Business Practices Act.

"Our veterans have sacrificed so much for this country, and they deserve real supportive services when they return to civilian life," said Attorney General James. "Healing for Heroes exploited veterans' service and betrayed the trust of their donors, including local community members, veterans' organizations, and businesses to enrich themselves and their friends. My office has no tolerance for charities that use noble causes to scam New Yorkers out of their hard-earned money."

Healing for Heroes claimed to provide a free, retreat-style stay designed to help support disabled veterans on a 30-acre wooded property in Bemus Point, Chautauqua County. Attorney General James alleges that Healing for Heroes failed to deliver on its core promise of providing veterans with the experience of a healing retreat. Only four retreats were held in 2024 and 2025, which were exclusively attended by Healing for Heroes board members and their family and friends. 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. Around this time the Nelsens began renting the property on Airbnb promising customers that 100 percent of the rental funds would go to the charity. They rented the property on at least 32 occasions and deposited $33,312.16 into their personal account.

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. Instead, tens of thousands of dollars were used to renovate the Nelsens' personal property and pay for meals, shopping trips, and gas for the Nelsens and board members.

The charity's extensive fundraising efforts that targeted the local community and established veterans groups hinged on the claim that 100 percent of proceeds went to provide veterans with a healing retreat when the funds were used to enhance the Nelsens' own lifestyle. 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 asking the court to dissolve the organization and distribute its assets to charities that provide disabled veterans with therapeutic retreats, as well as to bar the Nelsens from soliciting funds for or serving in leadership for any other New York-based charity. Attorney General 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 is a leader in stopping charities fraud and protecting New Yorkers' charitable donations. In March 2026, Attorney General James demanded transparency from GoFundMe as 1.4 million donation pages were created without charities' consent. In December 2025, Attorney General James won a case for St. Claire's pensioners and a jury awarded $54.2 million in damages to the pensioners for their lost pension payments. In September 2025, Attorney General James sued VDARE for rampant self-dealing and misuse of millions in charitable assets. In February 2024, Attorney General James won her lawsuit against the NRA and its leadership for failing to properly administer charitable funds.

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.

This matter is being handled by Assistant Attorney General Paulette Campbell and overseen by Assistant Attorney General in Charge of the Buffalo Regional Office Christopher Boyd, with support from Senior Consumer Fraud Representatives Karen Davis and Joshua Lewis, Regional Supervisor of the Civil Investigations Division Kenneth Peters, Civil Investigator Matthew Srodawa, Office Assistant Adriana Bails, current student assistants Sofia Pilato and Mackenzie Quinn, and former student assistants Jack Curtis-Braley, Matthew McGloin, William Riter, and Brianna Rivera. The Buffalo Regional Office is a part of the Division of Regional Affairs, which is led by Deputy Attorney General Jill Faber. The Division of Regional Affairs is overseen by First Deputy Attorney General Meghan Faux.