The organizer behind New York City’s notorious Christmas-themed bar crawl finds himself in hot water after federal prosecutors accused him of embezzling millions intended for charity.

Stefan Pildes, a 50-year-old from Hewitt, New Jersey, was arrested in Manhattan on wire fraud charges. Authorities claim he misappropriated funds from the SantaCon event, which he oversaw.

SantaCon is an annual festivity where thousands of merrymakers, dressed as Santa Claus, take part in a bar crawl across New York City. The event is promoted as a fundraiser, with proceeds supposedly benefiting local charities.

Participants in Santa Claus attire join the SantaCon festivities in New York City on December 13, 2025. (John Lamparski/Getty Images)

Bars and restaurants collaborating with SantaCon also contributed between 10% and 25% of their event-related earnings, believing these funds would support charitable causes, according to federal officials.

Yet, investigators claim that from November 2019 until April of this year, Pildes allegedly diverted these charitable donations into his personal accounts.

People dressed as Santa Claus participate in the annual SantaCon celebration in New York City on Dec. 13, 2025. (Mostafa Bassim/Anadolu via Getty Images)

Pildes is accused of taking more than half of the $2.7 million raised over nearly seven years for a “slush fund to finance various personal ventures and spent hundreds of thousands of dollars” for “among other things, concert tickets, fine dining, luxury vacations and home renovations,” according to the indictment.

Federal prosecutors allege Pildes siphoned the money into his self-owned entity, Creative Opportunities Group, Inc., while only donating a small portion of the proceeds. 

People dressed as Santa Claus participate in the annual SantaCon celebration in New York City on Dec. 13, 2025. (Mostafa Bassim/Anadolu via Getty Images)

Pildes allegedly used $365,000 of stolen funds “to renovate a lakefront property in New Jersey,” while allotting $124,000 to rent a luxury Manhattan apartment, authorities said.

An attorney assigned to represent Pildes has not yet been identified in court documents. 

“He took advantage of New Yorkers’ generous holiday spirit to finance his lifestyle through personal expenses, big and small,” U.S. attorney Jay Clayton said in a statement. “No matter how you dress it up, fraud is fraud.  We are committed to protecting New Yorkers from those who exploit their enthusiasm and generosity.”

If convicted, Pildes faces the possibility of up to 20 years in federal prison. 

SantaCon did not immediately respond to Fox News Digital’s request for comment.