The chief financial officer of a Virginia birth-injury program pled guilty today to embezzling more than $4.8 million from the program.
John Hunter Raines, 38, of Providence Forge, pled guilty to mail fraud and money laundering offenses. He is scheduled to be sentenced on Feb. 27, 2025, and faces a maximum penalty of 30 years in prison.
According to court documents, Raines stole millions from his former employer, the Virginia Birth-Related Neurological Injury Compensation Program.
The birth-injury program pays monetary compensation to families of infants who suffer from brain or spinal cord injuries resulting from the birth process that render the infant developmentally and/or cognitively disabled.
Raines’ role required that he oversee the finances of the program including approximately $650 million in investments in 2023.
From at least January 2022 through October 2023, Raines initiated at least 59 separate wire transactions, sending funds to bank accounts in Raines’ own name.
Raines also used the birth-injury program debit card on various personal expenses.
Personal expenses charged to birth-injury program
- Eight luxury golf carts for more $160,000
- A 2023 Chevrolet Suburban
- More than $100,000 on gambling, including at Rivers Casino in Portsmouth, Colonial Downs Racetrack in New Kent and the Virginia Lottery
- $29,000 paid to an intimate partner
- Tens of thousands of dollars transferred to a bank account in the name of his wife
- $9,000 on private limousine services including to chauffer Raines and his guests in a Mercedes limousine from Raines’ house to Virginia vineyards
- Purchases of cryptocurrency including Bitcoin and Dogecoin
- Paid tens of thousands of dollars towards his student loan debt, his mortgage and other loans
- More than $125,000 for private jet travel for Raines’ friends and family
- More than $19,000 to purchase eight separate 2022 one-ounce American Gold Eagle Bullion coins and a 100-ounce silver bar
As a financial control on the program, Virginia code required an independent certified public accountant selected by the board of directors to complete an audit of the program’s accounts each fiscal year. Raines deliberately impeded the statutorily mandated audit process by failing to timely provide files to auditors when requested. Due at least in part to Raines’ obstructive conduct, the audits were delayed by more than three years.
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Former executive of Virginia benefit program charged with stealing $4.8 million
Published date: August 25, 2024 | 12:09 pm
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Crystal Graham
