A former executive of the Virginia Birth-Related Neurological Injury Compensation Program, John Hunter Raines, has been sentenced to nine years in prison for embezzling over $6.7 million from the organization. The program provides financial compensation to families of infants with brain or spinal cord injuries incurred during birth.
Raines, 38, held positions as Chief Financial Officer and Deputy Director at the Birth-Injury Program. His responsibilities included overseeing approximately $650 million in investments as of 2023. Court documents revealed that between January 2022 and October 2023, Raines executed at least 59 wire transfers from the program's bank account into his own accounts. He also misused a company debit card for personal expenditures.
The embezzled funds were spent on luxury items and experiences such as eight golf carts costing over $160,000, a Chevrolet Suburban, and private jet travel amounting to more than $125,000. Additionally, Raines indulged in gambling activities totaling over $100,000 and made various cryptocurrency purchases.
Raines' actions obstructed mandatory audits required by Virginia Code § 38.2-5015(B), which necessitates annual reviews by an independent certified public accountant chosen by the program's board of directors. His failure to provide necessary documentation led to audit delays exceeding three years.
On October 8, 2024, Raines pled guilty to charges including mail fraud and money laundering offenses. Following this plea agreement acceptance by Senior U.S. District Judge John A. Gibney Jr., U.S. Attorney Erik S. Siebert; Damon E. Wood from the U.S. Postal Inspection Service; Kareem A. Carter from IRS Criminal Investigation; and Michael C. Westfall from the Office of State Inspector General announced the sentencing.
Assistant U.S Attorney Avi Panth along with former Assistant U.S Attorney Kashan K Pathan prosecuted this case.
Further information about this case can be accessed through related court documents available on PACER or directly via Case No: 3:24-cr-138 on respective websites.