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GoFundMe says homeless veteran Johnny Bobbitt will get the rest of the $400K owed to him after all

GoFundMe has promised that homeless veteran Johnny Bobbitt will receive the remainder of the donations owed to him. (Image source: Video screenshot)

The story of homeless veteran Johnny Bobbitt will have a happy ending after all.

GoFundMe promised on Thursday that it would make sure Bobbitt receives the money owed to him after a New Jersey couple reportedly mismanaged the $402, 706 raised for him in an online campaign in November, according to The Philadelphia Inquirer.

"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," Bobby Whithorne, GoFundMe director of North America communications, said in a statement.

The company said it will continue to assist the authorities with the investigation into the account.

What's the story?

Bobbitt's lawyers filed a civil lawsuit last month against Kate McClure and Mark D'Amico alleging they cut him off from the money. He ended up back on the streets.

Christopher Fallon, one of the lawyers representing Bobbitt, told a Pennsylvania judge that his client had received about $75,000 of the money raised for him.

The couple had created the fundraiser for Bobbitt, a former U.S. Marine, after he spent his last $20 to put gas in McClure's car when she was stranded in Philadelphia on Thanksgiving.

McClure and D'Amico have been accused of spending the money on a BMW, expensive vacations, and other items. They have denied the allegations.

Last week, the couple was ordered to turn over any remaining funds to an escrow account. Earlier this week, their attorney contacted Fallon and informed him that the money was all spent.

The civil suit filed in a Pennsylvania court led to a criminal investigation.

On Thursday morning, the Burlington County Prosecutor’s Office and the Florence Township Police Department executed a search warrant at the couple's home.

Authorities hauled off large bags of evidence and towed off the black BMW that may have been purchased using some of the money raised for Bobbitt.

How can GoFundMe cover the missing money?

GoFundMe charges a 2.9 percent payment processing fee plus 30 cents per donation to cover "the cost of third-party card processors and the safe and secure transfer of funds," Whithorne said in the statement.

The company no longer charges a "platform fee," he added.

"Normally, the campaign organizer would never touch money, but in this unique situation, the campaign organizer was permitted to withdraw the funds," he said. "Regardless, we have taken steps to prevent this extremely unique situation from occurring again."

Last month, the company announced it had deposited $20,000 to a bank account to help pay for legal fees during the investigation.

Can donors to Bobbitt's campaign get a refund?

The GoFundMe Guarantee Policy allows donors to file for refunds of contributions up to $1,000 when funds have been misused.

"All donations are at your own risk," the service agreement reads. "It is your responsibility to understand how your money will be used."

Normally, donors must submit claims within 30 days of making a donation, but the company has waived the policy in this case.

"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 the statement.

What else?

It's not yet known how much money is owed to Bobbitt.

McClure and D'Amico are expected to testify in court on Monday.

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