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Bill requires jail time, restitution in crowdfunding fraud

January 3, 2019

TRENTON, N.J. (AP) — New legislation would tighten penalties for fraud schemes like the one prosecutors say involved a New Jersey couple and a homeless man who allegedly duped people into giving more than $400,000.

Republican Rep. Ron Dancer introduced the bill Wednesday.

He says convicted fraudsters who use crowdfunding sites like GoFundMe in their schemes would face mandatory jail time and have to pay restitutions under his proposal.

He says the bill was inspired by the headline-grabbing case involving Mark D’Amico, Katelyn McClure and Johnny Bobbitt.

D’Amico and McClure set up a GoFundMe page for Bobbitt in 2017 that brought in over $400,000. They said Bobbitt was homeless and used his last $20 to help a stranded McClure.

The pair and Bobbitt face charges including theft by deception. GoFundMe says it refunded everyone who contributed.

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