No Good Crowdfunding Deed

Is it “no good deed goes unpunished”?

A New Jersey couple who had been helped by a homeless man set up a crowdfunding site for him. After raising more than $400,000, they gave Johnny Bobbitt some of the money.

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But when they discovered that he had spent that sum allegedly for drugs, they withheld a portion.

Mr. Bobbitt claims that the couple actually spent some of the money of vacations, a new BMW and other items for themselves.

Now, they’re in court and the judge has ordered them to pay over the remaining funds to Mr. Bobbitt.

This implies that if you set up a fund for somebody, you may be taking on a fiduciary relationship. Watch out!

https://www.washingtonpost.com/nation/2018/08/31/homeless-man-says-couple-spent-donations-meant-him-judge-ordered-them-give-him-rest/?noredirect=on&utm_term=.c9a1abae62d9

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, Charity, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, technology and tagged , , , , , , , , , , , , , . Bookmark the permalink.

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