The couple's home in Bordentown, New Jersey was raided on Thursday, and video footage showed a black BMW vehicle being towed away from the property. To thank him, McClure and her boyfriend, Mark D'Amico started a GoFundMe, which eventually raised more than $400,000.
The two issued a joint statement late Thursday, Sept. 6 saying Johnny Bobbitt will get an amount equal to the balance he didn't receive through the fundraiser.
Investigators executed the search warrant at Kate McClure and Mark D'Amico's Bordentown, New Jersey, home on Thursday, searching a black BMW parked in the driveway before loading it onto a flatbed truck and hauling it away, WPVI reported.
However, the good deed evolved into a legal dispute when Bobbitt accused the couple of spending the money on themselves and using it to make purchases for him without giving him the money raised in his name.
Burlington County Prosecutor Scott Coffina said Thursday he was confirming the investigation because of the "enormous public interest" in the case. So this is a separate criminal investigation.
Neither the couple nor Bobbitt was in court Wednesday.
This week, the Burlington County Prosecutor's Office and the Florence Township Police Department executed a search warrant on Mr D'Amico and Ms McClure's home as part of a criminal investigation into what happened to the initial donations, before GoFundMe confirmed they would ensure Mr Bobbitt received the entire $US400,000 he was owed.
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"They went on shopping sprees", she told the paper.
Bobbitt, who is from Philadelphia, has sued McClure and D'Amico to recover much of the $402,000 they solicited through a crowdfunding campaign late a year ago.
"Johnny Bobbitt will be in a residential drug program", Fallon told the judge Wednesday, adding that he would start it immediately.
More than 14,000 donors stepped up, contributing more than $400,000 for Bobbitt after his story of helping the stranded South Jersey motorist in November went viral.
There are conflicting reports from the couple and Bobbitt about how the money was used and whether Bobbitt was a participant or a victim. A BMW that Bobbitt claims the couple bought with the money was towed off the property.
On Wednesday, Judge Dow ordered Badway to tell his clients, who were not in court, that they must appear before her September 14 after giving sworn depositions on what happened to the money at Badway's law office on Monday morning. But a day after the deadline passed, a lawyer for Bobbitt said there is no money left to surrender.
Bobbitt claims he never had access to the money - which they said was to be used to buy a house - and that D'Amico instead spent the donations on a vacation to Las Vegas, the Grand Canyon and Los Angeles, an accusation the couple denied during an appearance last Monday with Megyn Kelly on NBC. GoFundMe deposited $US20,000 in an account created by the man's legal team.