Judge Colleen McMahon told Stefan Pildes at his first appearance in federal court that she was not a fan of the annual SantaCon bar crawl, saying each year she feels “assaulted by SantaCon” and that she must stay home while “drunken kids who are wearing Santa costumes” crowd New York City sidewalks. Pildes, the organizer of the event, was arrested a week earlier and freed on bail before the hearing in Manhattan, according to the case coverage.

McMahon’s comments came as the judge presided over the fraud case against Pildes. After the remarks, Pildes left McMahon’s Manhattan courtroom without commenting, while his attorney, Noam Biale, issued a statement.

Biale said in the statement that Pildes “did not defraud anyone.” Biale added that Pildes would continue to contest the allegations, saying that “Every participant in SantaCon got exactly what they bargained for: mirth, merriment, and drunken debauchery,” and that they “look forward to advocating on Stefan’s behalf.”

Prosecutors said they plan to build their case using financial institution records, information from a ticketing company, and evidence collected from dozens of bars and restaurants that pledged to donate 10% to 25% of their sales during SantaCon to charity. In the indictment, prosecutors allege Pildes provided only a small portion of the money raised for charitable purposes.

The allegations center on how much was collected and how it was used. Prosecutors allege that Pildes raised $2.7 million from 2019 to 2024 and gave only a small portion of that total to charity, while they say he diverted more than half of the money to finance personal ventures and spent hundreds of thousands of dollars more on himself.

Prosecutors also allege that money earmarked for charities was used for renovations to a lakefront property in New Jersey, concert tickets, luxury vacations, extravagant meals and a luxury vehicle. The case will therefore hinge, prosecutors said, on records and documentation they plan to present as the proceedings continue.

SantaCon, which draws large crowds of costumed participants, is traced to a 1994 flash mob-style event in San Francisco known as “Santarchy,” intended to mock Christmas consumerism. As the idea spread to other cities, it moved from countercultural roots toward a larger mass bar crawl, drawing both criticism from residents who say it brings chaos to streets and subways and amusement from those who say it is part of the holiday fun for thousands of revelers.

In New York, that mix of annoyance and entertainment has become part of the event’s public profile, with participants often arriving dressed as Santa figures and other holiday characters as the crowds fill Manhattan’s streets. The federal case adds a separate legal focus to the annual gathering, with the judge’s remarks highlighting the conflict between the spectacle’s popularity and prosecutors’ allegations about charity fundraising.