Two plead guilty to running bogus charity

A husband-and-wife team pleaded guilty Tuesday in Nassau County Court to concocting a phony breast cancer charity and using $500,000 in contributions from unsuspecting donors to fund their extravagant lifestyle.

Using money from the scam, which ran from January 2008 through February 2010, David and Mindy Winston, both 55, ran up bills that included more than $5,000 spent in restaurants like the Peter Luger Steakhouse and the Gotham Bar and Grill, and more than $8,000 for their daughter's dues for the Sigma Delta Tau sorority at the University of Michigan, and other expenses, prosecutors said.

"The Winstons supported a lavish lifestyle by using the hard-earned money donors gave to fight breast cancer," state Attorney General Eric Schneiderman said in a statement.

David Winston pleaded guilty to first-degree scheme to defraud and third-degree grand larceny related to the operation of the bogus charity, Coalition for Breast Cancer Cures Inc., and a for-profit fundraising firm called The Resource Center, prosecutors said.

Under the terms of a plea agreement with the attorney general's office, he will be sentenced to 2 to 6 years in prison.

David Winston's lawyer, Edward Mandery, of Mineola, said after court that his client "started off with the best of intentions to try and start a business to legitimately help people who were in need. Unfortunately things did not go as planned and somewhat snowballed."

Mandery, who would not elaborate, said Winston "is exceptionally remorseful."

Winston's wife, Mindy, pleaded guilty to first-degree falsifying business records for a bank account for the fake charity. Under her plea deal, she will receive 5 years' probation.

District Court Judge Francis Ricigliano warned the Winstons, formerly of Great Neck, that the plea agreement could be withdrawn "if you get into any trouble with the law" before their Oct. 19 sentencing date.

The Winstons' pleas come two months after Schneiderman sued the Suffolk County-based Coalition Against Breast Cancer, accusing it of spending just $364,000 on breast cancer services and research programs even though it collected $9.1 million over the past five years.

The American Cancer Society issued a statement decrying the effect bogus charities can have on legitimate fundraising efforts. "The actions of one sham charity hurt the efforts of all charities. A single deceit can shake the ground of donor trust across the board," it said.

A civil trial is also under way for the Winstons. In that case, the attorney general has alleged the Winstons falsely claimed the Coalition for Breast Cancer Cures was a registered nonprofit organization, mailed phony invoices to dupe donors, and repeatedly charged donors' credit cards without authorization.