GoFundMe Couple Likely to Face Criminal Charges in $400,000 Money Feud

September 11, 2018 Updated: September 11, 2018

The New Jersey couple accused of keeping the $400,000 they raised for a homeless veteran on GoFundMe will probably face criminal charges, according to their lawyer.

Attorney Ernest Badway wrote in a letter that came to light on Monday, Sept. 10, that his firm would no longer be representing Mark D’Amico and Katelyn McClure, NBC reported.

“(Since) it is expected that one or both of the defendants will likely be indicted, my firm and I will no longer be able to continue our representation of them in this matter,” Badway wrote, according to the report.

The couple could face indictment by a Burlington County prosecutor, according to the letter, which was provided to Superior Court Judge Paula Dow as part of the lawyer’s request for a stay in the civil case until December.

Burlington County Prosecutor Scott Coffina last week confirmed that a criminal investigation into the couple had been launched.

Coffina said in a statement, “Due to the enormous public interest in this matter, I am confirming that a search warrant was executed early this morning by the Burlington County Prosecutor’s Office and the Florence Township Police Department at the residence of Mark D’Amico and Katelyn McClure in connection with a criminal investigation into the Johnny Bobbitt matter.”

No charges have been brought against D’Amico or McClure.

Badway has declined to comment on the case and it is unclear whether he will represent the two if the case moves to criminal proceedings.

Homeless man Johnny Bobbitt
File photo of Johnny Bobbitt, whose story of helping stranded motorist Katelyn McClure went viral. Aug. 15, 2018. (David Swanson /The Philadelphia Inquirer via AP)

Feel-Good Story Turned Sour

The couple raised over $400,000 for Johnny Bobbitt after he used his last $20 to fill up McClure’s gas tank when her car ran out of gas and she became stranded near an I-95 exit ramp in Philadelphia.

But what initially was a feel-good story that went viral on social media and led to TV appearances, eventually turned sour amid accusations the couple was withholding the money from Bobbitt.

The homeless military veteran and former paramedic brought a suit against the couple.

Lawyers representing Bobbitt said he had received about $75,000, while Badway claimed his clients had turned over about $200,000.

Last week Badway said that none of the $400,000 remains.

‘Johnny Will Be Made Whole’

Online fundraising site GoFundMe announced on Sept 6. that Bobbitt would get all the money from the online campaign.

The Philadelphia Inquirer reported that Bobby Whithorne, director of North America communications for GoFundMe, said in a statement: “Johnny will be made whole, and we’re committing that he’ll get the balance of the funds that he has not yet received or benefited from. GoFundMe’s goal has always been to ensure Johnny gets [the] support he deserves.”

GoFundMe will also refund donors too, waiving a 30-day restriction that would have applied to the 10-month-old campaign.

“This is an extremely rare situation, and we are working with law enforcement officials to get Johnny the money raised on his behalf, which means the 30-day policy does not apply in this case,” Whithorne said in a statement issued on Sept. 6, reported the Inquirer.

Photo of Johnny Bobbitt
File photo of Johnny Bobbitt, who brought a suit against Katelyn McClure and boyfriend Mark D’Amico for control of funds the couple raised on his behalf, on Aug. 15, 2018. (David Swanson /The Philadelphia Inquirer via AP)

What Happened to the Money?

The couple denies allegations of mismanagement, saying they were reluctant to give Bobbitt such a large sum of money out of fear he would buy drugs.

According to the New York Post, Bobbitt’s lawyer, Jacqueline Promislo, said the couple started spending the money right after they deposited the online donations meant for Bobbitt into their bank account last fall.

“They went on shopping sprees,’ Promislo said. “[Bobbitt] tells me they had a Louis Vuitton bag and Chanel sunglasses, a new iPhone 10.”

Investigators executed a search warrant on Sept. 6 at the home of D’Amico and McClure, and could be seen removing a black BMW on the back of a flatbed truck.

“From what I can see, the GoFundMe account raised $402,000 and GoFundMe charged a fee of approximately $30,000,” Bobbitt’s lawyer Chris Fallon told CNN on Aug. 25. “Mark D’Amico and Katelyn McClure gave Johnny about $75,000. There should be close to another $300,000 available to Johnny.”

McClure said on the GoFundMe page that the money would be used to buy Bobbitt a house and truck, and the rest would be placed in two trusts—one that would let him “collect a small ‘salary’ each year” and another for his retirement.

Promislo said that it will be possible to say what happened to the money only once an investigation has run its course.

“Until we have a forensic accountant go through it, I can’t say that they spent his money,” said Promislo. “But now that they say there is no money, where did it go?”

 

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