Stefan Pildes, the 50-year-old organizer of New York City's annual SantaCon event, was arrested Wednesday on federal wire fraud charges for allegedly misappropriating donations meant for charity.

Prosecutors say Pildes, of Hewitt, New Jersey, siphoned more than half of the money donated over five years for the event, which brings thousands of people in Santa costumes to bars across Manhattan each December. The total amount allegedly pocketed exceeded $1 million.

SantaCon has been promoted as a charitable fundraising event, with participants believing their donations would benefit various causes. Instead, federal authorities allege Pildes diverted the majority of funds for personal use while the event continued to be marketed as supporting charity.

The annual bar crawl has become a fixture of New York City's holiday season, drawing large crowds of costumed participants who move between bars and public spaces. The event has generated controversy over the years due to public intoxication and disorderly behavior.

Pildes awaited an appearance in Manhattan federal court where the indictment was unsealed. The wire fraud charges carry potential penalties including significant prison time and financial restitution to affected charities and donors.