Proposed Law Inspired By Alleged $400K GoFundMe Scam

BURLINGTON COUNTY, NJ - An alleged $400,000 GoFundMe scam involving a South Jersey couple and a homeless Philadelphia vet has prompted a New Jersey state lawmaker to take action.

Assemblyman Ron Dancer (R-12) introduced a bill that would increase the penalties for anyone convicted of crowdfunding theft, including mandatory fines, jail time, and restitution, Assembly Republicans announced on Wednesday.

Dancer said bill A4863 would increase penalties a degree if the crime uses crowdfunding as part of a theft. It also calls for a fine of up to $500 for each crowdfunded contribution the person collected. The money will be deposited into a fund to provide housing assistance to people who are homeless or in imminent danger of losing their housing.

The proposal is the result of an alleged scam by a Florence couple that collected about $400,000 through an online fundraiser for homeless vet Johnny Bobbitt Jr. Bobbitt, Kate McClure, 28, and Mark D'Amico, 39, have all been charged with conspiracy and theft by deception in the online fundraiser.

The campaign was launched after the trio said Bobbitt gave McClure his last $20 when she ran out of gas on I-295 heading into Philadelphia last year. In filing the charges, the Burlington County Prosecutor’s Office has said they made up the story that lead to the campaign.

“Scams like this undermine the foundation of charitable giving,” said Dancer, whose district covers parts of Burlington, Ocean, Monmouth and Middlesex counties. “New Jerseyans, like many, are a giving people. They don’t hesitate to donate when they see someone in need, but when they are deceived it makes them reluctant to give in the future. The ones who suffer are the folks who have a real need.”

GoFundMe has refunded more than 14,000 people who contributed to the campaign, which has been removed from the fundraising group’s website.

“It's important to understand that misuse is very rare on our platform,” GoFundMe spokesman Bobby Whithorne said. “Campaigns with misuse make up less than one tenth of one percent of all campaigns. We have a zero tolerance policy for fraudulent behavior. If fraud occurs, donors get refunded, and we work with law enforcement officials to recover the money. One fraudulent campaign is one too many, but when it does take place, we take action to protect donors. To learn more about our refund policy, the GoFundMe Guarantee, please visit www.gofundme.com/guarantee.”

McClure's attorney James Gerrow claimed she was duped by D'Amico, and released an audio recording McClure had secretly made of an argument between the two. Gerrow described their relationship as "controlling and abusive."

D'Amico's attorney Mark Davis called it "laughable" that McClure was portraying herself as the victim. He also said McClure made up the story, and that D’Amico was initially unaware that the story wasn’t true. Bobbitt has made his first court appearance and was released, pending trial.

“Taking advantage of someone’s good nature is appalling,” Dancer said. “A slap on the wrist is not adequate. Let’s make certain the punishment fits the crime.”

See related:
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Read The Unbelievable Text Messages Behind $400K GoFundMe Scam
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Homeless Vet Who Helped Woman Buys New Home With Money She Raised
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NJ Man Is Back On Streets - Even Though $400K Was Raised
NJ Couple Must Surrender Some Of $400K Raised For Homeless Man
NJ Couple's $400K For Homeless Man's GoFundMe Is Gone: Attorney
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Burlington County Prosecutor's Office photos of Bobbitt, McClure and D'Amico.