They company is conducting an investigation.
GoFundMe has announced it will give $400,000 to a homeless veteran who has been fighting to receive funds raised for him by a New Jersey couple.
Johnny Bobbitt Jr.’s lawyer, Chris Fallon, told CNN that GoFundMe has agreed to pay back the $400,000 raised by Kate McClure and her boyfriend Mark D’Amico for Bobbitt last year.
The couple started a campaign for Bobbitt after he’d given his last $20 to McClure after her car had run out of gas last October.
Since then, Bobbitt has brought a lawsuit against the couple, claiming the couple mismanaged his funds and used it to buy lavish vacations they otherwise could not afford.
GoFundMe said they will dole out the cash if their investigation finds the claims to be true.
"...Our platform is backed by the GoFundMe Guarantee, which means that in the rare case that GoFundMe, law enforcement or a user finds campaigns are misused, donors and beneficiaries are protected," GoFundMe said in a statement.
Fallon also told CNN that Bobbitt has preemptively received $20,000 through the company’s guarantee for food and housing.
Last week, a judge ordered the couple to give all the remaining money, $150,000, to Bobbitt’s attorney to put into an escrow account until a judge rules how it will be managed.
McClure and D'Amico had previously said a large sum of the money went to pay for a camper, as well as clothes, food, a TV, a laptop and hotel bills.
Bobbitt’s attorney, however, said the veteran had only seen $75,000 of the total $402,706 raised by 14,347 people.
McClure and D’Amico also previously told Megyn Kelly on the “Today” show that they gave Bobbitt $25,000 and he blew through it in less than 13 days.
"Every dollar he ever touched was used for drugs," D'Amico told Kelly.
On Thursday, police executed a search warrant at the couple’s home, but no charges have been filed, Burlington County Prosecutor Scott A. Coffina said in a statement.
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