Homeless Vet, NJ Couple Made Up $400K GoFundMe Scam: Prosecutors

BURLINGTON COUNTY, NJ - What began as a feel-good story about a South Jersey couple that helped a Philadelphia homeless man get back on his feet was all a scam so that all three could make money through an online fundraiser, prosecutors say.

Read update: Read The Unbelievable Text Messages Behind $400K GoFundMe Scam

The Burlington County Prosecutor’s Office announced charges of conspiracy and theft by deception against Mark D'Amico, Kate McClure and Johnny Bobbitt. All three allegedly fabricated their story with the intent of creating the GoFundMe account to raise money for themselves, according to the Burlington County Prosecutor's Office.

D'Amico and McClure were arrested on Wednesday, according to the BCPO. They have been released pending their first court appearance, scheduled for Dec. 24.

Bobbitt was arrested in Philadelphia on Wednesday night and will be extradited to New Jersey. It will be determined at a later date if he should be detained or released pending court.

GoFundMe plans to pay back all the money that was contributed to the campaign, Burlington County Prosecutor Scott Coffina said during a press conference Thursday afternoon.

Authorities allege that Bobbitt was talking with McClure and D'Amico for about a month before they launched the campaign on Nov. 10, 2017. Coffina said they first met because McClure and D'Amico frequented a casino near the overpass where Bobbitt was panhandling.

They gave him money to get food and coffee, and later cooked up this scheme, Coffina said. The story told by McClure and D'Amico initially was that Bobbitt gave his last $20 to McClure after she ran out of gas on I-95 on her way to Philadelphia.

In what was supposed to be a show of gratitude, McClure and her boyfriend D’Amico launched the fundraiser to help the homeless veteran. They ultimately raised $400,000, which after fees, came to about $367,000, according to Coffina.

But it turned out to be just that: a story, authorities said. Less than an hour after the fundraiser was launched, McClure told her friend in a text message, "OK, so wait. The gas part is made up, but the guy isn't. I had to make something up to make people feel bad. So, shush about the made up part," according to the probable cause statement provided by the prosecutor's office.

During their subsequent discussions, it was clear McClure and Bobbitt knew each other prior to the launch of the fundraiser, according to authorities.

The story appears to be based on an incident that happened when Bobbitt was homeless in North Carolina. Coffina told reporters during a news conference Thursday afternoon that Bobbitt posted online in 2012 that he had helped a woman who ran out of gas and had a flat tire. Coffina had no further details on that incident.

Although that incident appears to be the genesis of the scheme, Coffina said all three were likely responsible for coming up with the plan.

"Johnny Bobbitt deserves all the appreciation for being a veteran, and all the symapthy for his publicized addiction," Coffina said. "But he was fully complicit in this scheme."

Coffina said there was a good chance they might have gotten away with it had the underlying greed behind the alleged plan not come to the forefront.

When Bobbitt accused the Florence couple of preventing him from accessing the money that was raised for him through the Paying It Forward GoFundMe campaign, it was likely because he wasn't getting as much of the money as he anticipated, Coffina said.

So he filed a civil lawsuit in which he claimed he was only given access to $75,000, and that the couple spent the rest of the money on themselves. The judge ruled in Bobbitt's favor, citing the likely irreparable harm done to Bobbit because he is homeless and collecting money from a GoFundMe campaign.

The money was to be held in an escrow account and turned over to Bobbitt's legal team, but it was later revealed that the money was completely gone. It had been gone since March. McClure expressed her frustration when the money was nearly gone, but D’Amico told her that once their book deal went through, they would laugh about “that time they blew hundreds of thousands of dollars.”

D'Amico and McClure spent the money on multiple vacations, extensive gambling, a luxury car, expensive designer handbags, and repayment of $9,000 in personal debts to their family members, according to authorities. They also bought Bobbitt a trailer that he lived in outside of their home. That trailer was sold for $10,000 on June 11, 2018, authorities said.

The civil suit is currently on hold, pending the outcome of the criminal investigation, Coffina said. That civil suit appears to be a miscalculation on Bobbitt's part, as it served as the launching pad for the criminal investigation, Coffina said.

It's a miscalculation D'Amico appeared to be trying to squash before it became a problem. Shortly after news of the civil suit became public, D'Amico sent Bobbitt a text message that encouraged Bobbitt to drop the suit. It read, in part, "Defending ourselves makes it impossible not to bad mouth you," according to philly.com.

His attempt was futile, and a few days later, investigators executed a search warrant at the couple’s home in September. During that search, investigators were collecting hard drives, computers, bank statements, receipts and any other documents that may provide a clue as to where the rest of the money went.

They also seized expensive handbags, jewlery, a BMW and other items McClure and D'Amico allegedly purchased with the ill-gotten funds. Those items will undergo the civil forfeiture process. Money raised through that process will be used by authorities to go back into fighting crime.

Among the evidence seized were over 60,000 text messages exchanged between McClure and D’Amico in which they discussed financial woes, inability to pay bills, mounting debts and casino play, according to authorities.

In addition, McClure had multiple recordings on her phone between and among herself and others including an interview with a literary agent about the “Paying it Forward” campaign, according to the probable cause statement provided by the prosecutor’s office.

GoFundMe also opened its own investigation into the page, which remains active, but is no longer accepting donations. GoFundMe determined that Bobbitt should receive the rest of the money raised.

A week later, D’Amico was arrested at his home on traffic warrants. No news had come out of the case since then, until the charges were filed this week.

The charges are second-degree charges, and carry a penalty of 5-10 years in prison. Authorities will seek prison time in this case, Coffina said.

The investigation is ongoing, but Coffina doesn't expect anyone else to be charged in connection with the case, as it stands. However, the evidence shows other people were aware of the scheme, including McClure's friend and her mother, who warned her that people go to jail for scamming people out of money.

The friend also told McClure they had an amazing support system, to which McClure replied, “but none of them know the truth.”

Other evidence showed that Bobbitt was excited about the money changing his life, but didn’t acknowledge the “fake gas story,” in a video shot by McClure and obtained by authorities. However, McClure’s friend did warn her that Bobbitt would, “out them.”

Coffina said this case shouldn't sour anyone on making donations to charities in the future, but they should be cautious about donating.

"The generosity of individuals prompted them to donate to this campaign, and they were taken advantage of," Coffina said. "But you shouldn't become too skeptical. It is commendable to show sympathy, but you should use caution and common sense."

Patch will update this story as more information becomes available.

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NJ Couple Must Surrender Some Of $400K Raised For Homeless Man
NJ Couple's $400K For Homeless Man's GoFundMe Is Gone: Attorney
GoFundMe Gives $20K To Homeless Vet, Probing NJ Couple's Role
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Homeless Vet To Get Rest Of GoFundMe $400K Raised By NJ Couple

Burlington County Prosecutor's Office photos of Bobbitt, McClure and D'Amico