Johnny Bobbitt, a former US Marine in Philadelphia, sued Katelyn McClure and Mark D'Amico in August, accusing them of mismanaging funds raised through online fundraiser GoFundMe to repay him for his kindness. Authorities were reportedly seen removing bags of items from the residence.
The couple's home was raided on Thursday and a new BMW along with a number of boxes were hauled away by police.
A judge presiding over Bobbitt's lawsuit ordered the couple to give sworn statements Monday on the status of all the money raised, as well as to turn over documents. Yet, according to Bobbitt, the couple kept the majority of donations to themselves.
Mr D'Amico has said Bobbitt spent $34,000 in less than two weeks a year ago on drugs as well as paying for overdue legal bills and sending money to family.
The allegations were used as a basis for obtaining the search warrant, which generally requires a lesser standard of proof than an arrest warrant. However, no charges have yet been filed.
Bobbitt's story made headlines on Thanksgiving in 2017 when he gave McClure his last $20 for gas after her auto ran out of fuel in a rough Philadelphia neighborhood.
Can donors to Bobbitt's campaign get a refund?
Missouri college drops Nike over new Kaepernick ad campaign
It's amusing watching a company that uses child slave labor overseas to make their products all of a sudden become humanitarians. The LA Lakers star said he stood for "anybody who believes in change" before adding "I stand with Nike all day, every day".
In this August 27, 2018 photo released by NBC, Mark D'Amico, left, and Kate McClure speak with host Megyn Kelly on "Megyn Kelly Today", in NY. He indicated in court this week that his clients intend to claim their right not to testify, but Dow said she needed to hear from them in person.
Chris Fallon, an attorney representing Bobbitt, told NBC Philadelphia this week that he was "shocked" and "appalled" to learn during a call with the couple's attorneys that the more-than $402,000 they raised was completely gone. Bobbitt was homeless and that $20 was, so the tale goes, his last.
According to Philadelphia's WTXF-TV, Bobbitt is in a 30-day treatment program.
In this August 27, 2018 photo released by NBC, Mark D'Amico, left, and Kate McClure speak with host Megyn Kelly on "Megyn Kelly Today", in NY.
"Until we have a forensic accountant go through it, I can't say that they spent his money".
McClure's boyfriend, D'Amico, started a GoFundMe campaign for $10,000 to help Bobbitt get through the winter as a thank you for his kind gesture. The trust would remain under the control of Bobbitt's lawyers but would not be used until the judge decides how it would be managed. But Bobbitt became homeless again after D'Amico told him in June that he had to leave the property. With the help of pro-bono lawyers, he took his case to court and claimed he'd received about $US75,000 that he spent on a camper, an SUV, and gifts to friends and family.
Eventually, Bobbitt wound up back on drugs, living on the street and panhandling for food. "GoFundMe's goal has always been to ensure Johnny gets [the] support he deserves", Whithorne told the Philadelphia Inquirer, "We'll continue to assist with the ongoing law enforcement investigation".
GoFundMe has given $20,000 to a bank account created by Bobbitt's legal team to provide assistance during the investigation.