Fake story on homeless vet raised $400K on GoFundMe, feds say. Woman headed to prison

A woman is headed to prison after helping create a fake story about a homeless veteran purportedly acting as a “good Samaritan,” which raised $400,000 on GoFundMe, federal prosecutors say.

The story made national headlines, causing online donations to pour in, after Katelyn McClure and her former boyfriend shared how a homeless veteran apparently used his last $20 to rescue McClure by buying gas for her, according to the U.S. Attorney’s Office for the District of New Jersey. She said she ran out of gas along I-95 in Philadelphia.

The couple’s established GoFundMe page, titled “Paying it Forward,” said they wanted to “reward” the homeless man, who also took part in the scam, “for his generosity” in late 2017, court documents show. Instead, prosecutors say thousands were spent by the couple on gambling, travel and more.

McClure, who is 32 and of Bordentown, New Jersey, was sentenced to one year and one day in prison after previously pleading guilty in connection with her role in the GoFundMe scam, a July 21 news release from the attorney’s office says.

McClatchy News contacted McClure’s attorney for comment on July 22 and was awaiting a response.

Her sentencing comes after her former boyfriend, Mark D’Amico, 43, pleaded guilty in connection with the case and was sentenced to 27 months in prison in April, according to prosecutors. Additionally, the homeless man, Johnny Bobbitt, is awaiting sentencing after his guilty plea.

A GoFundMe spokesperson told McClatchy News in a statement that “since 2010, our mission has been focused on helping people help each other.”

“In this case, the fundraiser misrepresented the reasons why (the GoFundMe page) was created — thereby committing a crime for which they have been prosecuted,” the spokesperson added. “We refunded 100% of all donations through our GoFundMe Giving Guarantee and, as we always do, we worked closely with law enforcement to ensure justice was done.”

The GoFundMe scam

The case goes back to how McClure and D’Amico created the GoFundMe campaign seeking $10,000 in November 2017, court documents show. It included a photo of McClure next to Bobbitt on the shoulder of a highway.

From that point forward, the campaign raked in donations from more than 14,300 donors in less than three weeks until December 2017, prosecutors say.

The GoFundMe campaign shared the fake story about Bobbitt purportedly giving McClure gas money, and wanting to help raise money to “get him the first and last month’s rent at an apartment, a reliable vehicle, and 4-6 months worth of expenses,” according to a complaint.

After a local newspaper published a story about the fund-raising efforts, the fake story garnered national media attention and McClure, D’Amico and Bobbitt began appearing on television interviews, the complaint states. As a result, more than $400,000 in donations came in to support Bobbitt.

“The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled,” the release says.

In December 2017, the couple created a bank account for Bobbitt and gave him $25,000 worth of donations, according to prosecutors.

Then, McClure and D’Amico proceeded to spend the majority of the donations how they wanted, including on trips and gambling at casinos in Pennsylvania, New Jersey and Las Vegas, Nevada, court documents show.

In February 2018, McClure messaged D’Amico writing “I want to get that car because I’d like to have something tangible after you spend every cent we have on gambling,” according to the complaint. Days later, they bought a $24,432 BMW.

All the GoFundMe donations were spent by March 2018, prosecutors say.

In November 2018, a GoFundMe spokesman told NBC News that “misuse is very rare on our platform.”

In March 2019, Bobbitt pleaded guilty to one count of money laundering and told prosecutors that McClure and D’Amico faked the story about him helping McClure, court documents show. Prosecutors say he admitted to buying drugs with the money he got from the scam.

McClure was also sentenced to three years of supervised release after she serves her prison term, the release says. Additionally, she must pay $400,000 in restitution.

Bordentown is roughly 8 miles south of Trenton.

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