GoFundMe refunds more than $400,000 to donors as New Jersey couple and homeless vet face grand jury

By Kate Smith

/ CBS News

Charges in alleged GoFundMe scam

GoFundMe says it has refunded more than $400,000 back to 14,000 donors who opened their wallets to help a homeless veteran in what prosecutors now say was a fake "good Samaritan" scam. The online fundraising campaign was started by New Jersey couple Kate McClure and Mark D'Amico to raise money for Johnny Bobbitt, who supposedly gave McClure his last $20 when her car ran out of gas. But prosecutors say the three actually made up the story and conspired to split the proceeds.

All of the money raised has now been refunded, including processing and administration fees, GoFundMe spokesperson Bobby Whithorne, said in an email to CBS News on Monday.

After a chance encounter at a local casino, the trio allegedly devised a story that prosecutors later called "too good to be true." McClure and D'Amico set up a GoFundMe campaign, "Paying it Forward," to reward Bobbitt for his generosity around the holiday season last year. The story caught the attention of people around the world and quickly soared past their initial $10,000 goal, amassing more than $400,000, according to police records.

"It was an irresistibly heartwarming tale," Scott Coffina, the Burlington County Prosecutor, said in a press conference in November.

But, as prosecutors revealed last month, there's evidence that the entire story was a fabrication. According to Coffina, McClure texted a friend less than an hour after the GoFundMe campaign launched, saying the story was "completely made up." McClure did not run out of gas on an I-95 ramp and Bobbitt did not offer his last $20 to help her. In the text exchange, McClure told her friends to "shh about the made up stuff," Coffina said.

All three are charged with theft by deception and conspiracy to commit theft by deception. They could face up to ten years of jail time if convicted. Ernest Badway, an attorney for the couple, declined to comment.

In the weeks before charges were filed, the three had begun publicly squabbling over the money. Bobbitt claimed the couple spent some of the donations and a judge had gotten involved in determining where the money had gone.

On Monday, GoFundMe said it had refunded all of the donors using the online platform's own money, according to Whithorne. The crowdsourcing website normally collects a fee of 2.9 percent of each donation, plus $0.30 per gift, according to its website, but it said that was refunded as well.

McClure and D'Amico were scheduled to appear in court on Monday, but their attorneys waived the hearing, Joel Bewley, a public information officer for the Burlington County Prosecutor's Office, said in an email to CBS News. The couple has no future court dates scheduled. The county prosecutor is currently preparing to present the case to a grand jury, Bewley said.

First published on December 24, 2018

© 2018 CBS Interactive Inc. All Rights Reserved.

GoFundMe refunds $400K to donors in alleged scam

GoFundMe says it has refunded more than $400,000 back to donors taken in by the story of a New Jersey couple and a homeless veteran

updated 9M ago

Mnuchin call to "Plunge Protection Team" summons ghost of '08

Treasury Secretary's move to scramble members of an obscure White House group is making some stock analysts nervous

updated 12M ago

Kevin Spacey charged with sexual assault

The charge comes more than a year after a former Boston news anchor came forward with allegations that the disgraced actor sexually assaulted her teenage son at a bar in 2016

updated 17M ago

Ex-Disney actor charged with 6 counts in underage sex case

Prosecutors said Westmoreland was on a dating app when he found a profile operated by a detective in Salt Lake City

2H ago

President Trump blames Fed for economic jitters

As market rout deepens, the president is ratcheting up the tension with monetary policymakers

1H ago

Mnuchin call to "Plunge Protection Team" summons ghost of '08

Treasury Secretary's move to scramble members of an obscure White House group is making some stock analysts nervous

updated 12M ago

Democrats decry Trump proposal to restrict green cards for immigrants who use public aid

The proposed rule would bar certain low-income immigrants who use public benefits from obtaining U.S. residency

1H ago

President Trump blames Fed for economic jitters

As market rout deepens, the president is ratcheting up the tension with monetary policymakers

1H ago

Operators of Texas "Tent City" for unaccompanied migrant children plan to close it

An official with the nonprofit organization, BCFS, said it will not accept any long-term extensions for the site, which was originally slated to close last July

3H ago

Mattis signs order to withdraw troops from Syria

The President announced Sunday that the Pentagon chief would be leaving his post two months earlier than anticipated

5H ago

Cruise ship rescues fishermen who were stranded for weeks

The sailors were saved Friday evening between Grand Cayman and Jamaica

updated 14M ago

Democrats decry Trump proposal to restrict green cards for immigrants who use public aid

The proposed rule would bar certain low-income immigrants who use public benefits from obtaining U.S. residency

1H ago

Russians probe mysterious hole in space capsule

A Russian cosmonaut who recently returned to Earth is revealing more details about the mysterious hole in a Soyuz capsule docked to the International Space Station

2H ago

"Ring of Fire" volcano triggered deadly tsunami

The deadly tsunami that struck Indonesia​ this weekend is just the latest in a series of seismic disasters along the "Ring of Fire"

4H ago

Operators of Texas "Tent City" for unaccompanied migrant children plan to close it

An official with the nonprofit organization, BCFS, said it will not accept any long-term extensions for the site, which was originally slated to close last July

3H ago

Kevin Spacey charged with sexual assault

The charge comes more than a year after a former Boston news anchor came forward with allegations that the disgraced actor sexually assaulted her teenage son at a bar in 2016

updated 17M ago

Ex-Disney actor charged with 6 counts in underage sex case

Prosecutors said Westmoreland was on a dating app when he found a profile operated by a detective in Salt Lake City

2H ago

Jazz legend Wayne Shorter on personal tragedy, career triumphs

At 85 the legendary saxophonist and composer shows no signs of slowing down

6H ago

Shawn Mendes: His star has taken off

How the 20-year-old Canadian self-taught musician with the megawatt smile cheerfully became one of the biggest names in pop music

Dec 23

"Silent Night": One of the Christmas season's most revered songs is commemorated on its 200th anniversary

One of the Christmas season's most revered songs is commemorated on its 200th anniversary

Dec 23

Russians probe mysterious hole in space capsule

A Russian cosmonaut who recently returned to Earth is revealing more details about the mysterious hole in a Soyuz capsule docked to the International Space Station

2H ago

"Ring of Fire" volcano triggered deadly tsunami

The deadly tsunami that struck Indonesia​ this weekend is just the latest in a series of seismic disasters along the "Ring of Fire"

4H ago

Upcoming app aims to give you big leg up in online privacy battle

FigLeaf's offering seeks to let you learn where your personal data's been been leaked across the internet and arm you with new tools to stay private

7H ago

In esports, parents push young players to excel

Forget soccer or piano lessons – these days, some parents are encouraging their kids' interest in video gaming

10H ago

SpaceX launches Air Force's most powerful GPS satellite ever built

Running five days late, SpaceX launched a next-generation navigation satellite Saturday

Dec 23

Does America's workforce have a drug problem?

Laboratory data show that drug use in health care, retail and other U.S. industries is on the rise

2H ago

Blood pressure medication recalled after cancer-causing chemical found

FDA announces that Torrent Pharmaceuticals Limited is voluntarily recalling two lots of Losartan potassium tablets

Dec 23

University Of Maryland confirms 40 adenovirus cases

One student at the university has been hospitalized with the illness

Dec 22

164,000 pounds of raw ground turkey products recalled

"Consumers who have purchased these products are urged not to consume them"

8H ago

Stem cell shots tied to bacterial infections

At least 12 patients in three states became infected after getting injections for problems like joint and back pain, the CDC reports

Dec 21

Mnuchin call to "Plunge Protection Team" summons ghost of '08

Treasury Secretary's move to scramble members of an obscure White House group is making some stock analysts nervous

updated 12M ago

President Trump blames Fed for economic jitters

As market rout deepens, the president is ratcheting up the tension with monetary policymakers

1H ago

Does America's workforce have a drug problem?

Laboratory data show that drug use in health care, retail and other U.S. industries is on the rise

2H ago

Stocks slide after Trump bashes Fed and Mnuchin calls bankers

President said Fed has no "feel" for the market, while Treasury Secretary seeks to reassure investors that banks are fine

2H ago

420K employees will go without pay during government shuts down

Even a partial closure would force a huge number of federal workers to stay on the clock without earning a dime

Dec 22

Kevin Spacey charged with sexual assault

The charge comes more than a year after a former Boston news anchor came forward with allegations that the disgraced actor sexually assaulted her teenage son at a bar in 2016

updated 17M ago

Woman uses Rudolph the Red-Nosed Reindeer costume during burglary

Fort Collins, Colorado police released surveillance video of her committing the crime

10H ago

LSU football player kills man trying to rob him and teammate

Two LSU football players were trying to sell an electronic item when one of them fatally shot an 18-year-old man trying to rob them, police say

Dec 23

"El Chapo" witness from Chicago recalls naked man "tied to a tree with a chain"

Tirso Martinez Sanchez, Jorge Cifuentes and Pedro Flores now share the notoriety of being the most recent cooperators to testify against the infamous Mexican drug lord

Dec 23

Idaho authorities cite "evidence" in case of missing Colorado mom

The body of Kelsey Berreth​ has yet to be found but authorities have arrested her fiance, Patrick Frazee​, on first-degree murder charges.

Dec 23  Original Article