A 30-acre wooded property on a lake in western New York opened up as a free retreat where disabled veterans could rest and heal. But the land is claimed to be a private getaway paid for by strangers who thought they were helping veterans.
On Aug. 12, Attorney General Letitia James sued the charity, Healing for Heroes, along with the married couple who founded and ran it, Thomas Nelsen and Jennifer Milchanoski-Nelsen, of Bemus Point. The lawsuit alleges the two solicited donations in the name of disabled veterans and then spent much of the money on themselves, renovating a bathroom, building a deck, covering meals and shopping, and maintaining their vehicles.
James is asking a court to dissolve the organization and hand what remains of its money to legitimate veterans charities.
The Nelsens have not responded to the claims. Military.com reached out for comment but received no response by press time.
The Attorney General’s Claims
Healing for Heroes was built to look like a refuge.
Its name carried the word “heroes” while its mission spoke to disabled veterans. The property was presented as a place where healing could happen.
But since the charity was founded in 2024, according to the lawsuit, the 30 acres held just four retreats. All four purportedly served the Nelsens’ fellow board members, friends and family.
Veterans outside that circle did not fare as well. The complaint alleges that when veterans with no close relationship to the Nelsens inquired about visiting the property, they were turned away before they could even apply.
The New York Attorney General’s Office told Military.com that its investigation identified at least one instance in which a veteran sought help from the organization and did not receive it.
The lawsuit claims that after the retreats stopped, the organization shifted to events that were more cost-effective—sometimes to the tune of costing almost nothing at all.
For example, they advertised a “Free Pizza & Fire Night” and a “Coffee and Donuts” gathering, while the Nelsens described the actual retreats as unaffordable.
Where the Donations Went
The Nelsens rented the retreat property on Airbnb at least 32 times between 2024 and 2025, per the lawsuit, telling the public that all proceeds would go to charity.
Instead, according to the complaint, they kept $33,312.16 of it for themselves.
Of nearly $100,000 given to Healing for Heroes, the lawsuit alleges that close to only half that total went to purposes unrelated to veterans, ranging from home improvements to personal purchases. Cash and Venmo contributions, the complaint says, were deposited into the couple’s personal accounts.
Donated vehicles, including multiple all-terrain vehicles and an SUV, went unreported. The lawsuit also alleges that some of the soliciting happened in 2024, before the group had even registered with the state as a charity. They had no functioning board and no policy to guard against the conflicts of interest described in the case.
How much was allegedly misused remains an open question. James’ office said that it is asking the court to order a full accounting to arrive at an exact figure.
A Familiar Target
This case could be viewed as a broader warning.
Charity scams that take advantage of military personnel are common enough that the attorney general’s office called veterans a well-known target. Their office has its own files backing this claim.
James’ office noted how the attorney general and the Federal Trade Commission recovered $34.2 million for more than 46,000 service members and veterans in 2022 who were deceived by the national jewelry retailer Harris Jewelry.
These scams come in many forms, evolving as soon as people catch on. Before giving to any group that simply invokes veterans, donors can confirm whether they are registered with their state’s charities bureau and search the IRS tax-exempt organization database to see whether it is a recognized nonprofit.
Trust but verify
Watchdogs such as Charity Navigator and the BBB Wise Giving Alliance rate how established organizations spend their money.
A promise that “100%” of donations reach veterans is often a reason to look more closely. IRS’s Tax Exempt Organization Search at irs.gov will confirm whether it is a registered 501(c)(3) at all.
For those that are registered, the annual Form 990—free on ProPublica’s Nonprofit Explorer or Candid’s GuideStar—shows what actually reaches veterans in comparison to salaries and fundraising.
CharityWatch grades harder than most, and suspected fraud goes to your state attorney general or the FTC.
James’ office maintains its own guidance on scams that target service members, and other states offer similar resources.
If the lawsuit succeeds, Healing for Heroes will cease to exist. Any money recovered will be directed to organizations that do the work the charity advertised.
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