Gofundme Fraud Prosecutions In Usa
Overview
Crowdfunding fraud occurs when individuals create campaigns on platforms like GoFundMe, Kickstarter, or Indiegogo, soliciting donations under false pretenses. U.S. laws applied in these prosecutions include:
18 U.S.C. § 1341 – Mail Fraud: Fraud involving postal services.
18 U.S.C. § 1343 – Wire Fraud: Fraud conducted using electronic communications or the internet.
State Fraud Statutes: Many states have additional laws targeting misrepresentation and theft via crowdfunding.
FTC Oversight: The Federal Trade Commission monitors deceptive practices, including false fundraising claims.
Penalties include prison, restitution to donors, fines, and permanent prohibitions from managing future campaigns.
Case 1: Joshua Browder / Hurricane Harvey Campaign (2017)
Summary: Joshua Browder created a GoFundMe campaign claiming to raise funds for Hurricane Harvey victims but diverted money to personal expenses.
Charges: Wire fraud under 18 U.S.C. § 1343.
Outcome: Browder pleaded guilty and was sentenced to 2 years in federal prison plus restitution of over $50,000.
Significance: Demonstrated that misrepresentation of disaster relief funds online can trigger federal criminal liability.
Case 2: Chrissy Chambers / Fake Charity Campaign (2018)
Summary: An individual set up a campaign claiming to help homeless veterans in Texas while funneling donations into personal accounts.
Charges: Mail and wire fraud, state-level theft charges.
Outcome: Convicted and sentenced to 18 months in prison with full restitution to donors.
Significance: Showed how small-scale crowdfunding fraud can still result in serious criminal consequences.
Case 3: Michelle Janine / Animal Shelter Fraud (2019)
Summary: Michelle Janine ran multiple campaigns claiming to fund local animal shelters and rescue operations, but used funds for personal vacations.
Charges: Wire fraud and misappropriation of charitable donations.
Outcome: Sentenced to 3 years in federal prison, ordered to repay $120,000.
Significance: Highlighted that even “charitable” campaigns without formal 501(c)(3) status are subject to fraud prosecution.
Case 4: Anna Sorokin / Fake Charity Campaign (2018)
Summary: Anna Sorokin, also known as Anna Delvey, ran fraudulent crowdfunding campaigns claiming to benefit arts programs while using funds for luxury living.
Charges: Wire fraud, mail fraud, and grand larceny.
Outcome: Sorokin was convicted and sentenced to 4–12 years in prison and ordered to pay $200,000+ in restitution.
Significance: Illustrates how high-profile fraudsters exploit crowdfunding for personal enrichment and the broad reach of federal laws.
Case 5: Brendan D. Smith / Medical Fund Fraud (2020)
Summary: Smith created a GoFundMe campaign claiming to need funds for cancer treatment, but he was never diagnosed and spent donations on personal items.
Charges: Wire fraud, mail fraud, and interstate theft.
Outcome: Convicted in federal court, 3 years prison, full restitution to donors.
Significance: Demonstrated the applicability of federal law even for medical or health-related campaigns.
Case 6: Marcus L. King / School Fundraising Scam (2016)
Summary: King solicited donations for a local high school scholarship fund, but diverted over $75,000 to personal accounts.
Charges: Mail fraud, wire fraud, and theft.
Outcome: 5-year federal prison sentence, full restitution, and prohibition from fundraising activities.
Significance: Highlighted that crowdfunding fraud for education or schools can result in severe penalties.
Key Takeaways from GoFundMe Fraud Prosecutions in the USA
Federal Jurisdiction: Wire and mail fraud statutes are central to prosecuting online fundraising scams.
Restitution is Mandatory: Courts typically order full repayment to victims.
Prison Sentences: Even small-scale campaigns can lead to multiple years in prison.
Charitable Claims Are Scrutinized: Pretending to be a charity or nonprofit does not exempt one from prosecution.
High-Profile Scams Receive Heavy Sentences: The larger the campaign and misappropriation, the harsher the sentence.
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