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NJ bill requires jail time, restitution in crowdfunding fraud

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

Johnny Bobbitt stands during a hearing Burlington County Courthouse in Mt. Holly, N.J. on Friday Dec. 14, 2018.   Bobbitt will be released from county jail and live in his apartment in Philadelphia.  Prosecutors say Bobbitt conspired with Katelyn McClure and her former boyfriend, Mark D'Amico, to concoct a feel-good story about Bobbitt giving McClure his last $20 when her car ran out of gas. They raised $400,000, which authorities say was spent on luxury items and casino trips.   (David Swanson /The Philadelphia Inquirer via AP, Pool)
Johnny Bobbitt stands during a hearing Burlington County Courthouse in Mt. Holly, N.J. on Friday Dec. 14, 2018. Bobbitt will be released from county jail and live in his apartment in Philadelphia. Prosecutors say Bobbitt conspired with Katelyn McClure and her former boyfriend, Mark D'Amico, to concoct a feel-good story about Bobbitt giving McClure his last $20 when her car ran out of gas. They raised $400,000, which authorities say was spent on luxury items and casino trips. (David Swanson /The Philadelphia Inquirer via AP, Pool)Read moreDAVID SWANSON / AP

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.