The state-managed fund provides compensation to disadvantaged children in Virginia; a New Kent County man is suspected of embezzling around $5 million from the fund.
New Kent resident John Hunter Raines, 38, was taken into custody and charged with felony fraud on Thursday, August 22, according to the U.S. Department of Justice.
Raines is facing accusations related to his tenure as the deputy director and chief financial officer of the Virginia Birth-Related Neurological Injury Compensation Program, also known as the Birth-Injury Program, as stated by the DOJ. Fund administration for this program is handled by the state-operated Virginia Workers’ Compensation Commission.
Families whose newborns have brain or spinal cord injuries that prevented them from developing normally or left them with cognitive disabilities benefit from the Birth-Injury Program. Raines was in charge of the program’s finances, which included investments totaling roughly $650 million in 2023, according to the DOJ.
Over $4.8 million is allegedly pilfered by Raines from the Birth-Injury Program between January 2022 and at least October 2023, according to court records.
Raines allegedly accomplished this by transferring program cash to bank accounts in his name at least 59 times, utilizing his access to the program’s bank account, according to the DOJ. He also faces charges of making personal use of the Birth-Injury Program debit card.
Several instances of Raines’ purported usage of these funds are described in court filings, including:
- Acquiring many automobiles, including eight opulent golf carts valued at more than $160,000 and a 2023 Chevrolet Suburban
- Gambling more than $100,000 on the Virginia Lottery and at venues like the Colonial Downs Racetrack in New Kent County and the Rivers Casino in Portsmouth
- Squandering more than $9,000 on private limos, which he utilized to transport himself and visitors to wineries in the Virginia region.
- Investing in cryptocurrencies, such as Dogecoin and Bitcoin, and sending money to his brokerage accounts
- Purchasing a private plane for his spouse and friends to travel to Nashville, Tennessee, for more than $30,000.
- Spending more than $60,000 to settle debts, including his mortgage and school loans
- Investing more than $19,000 on a 100-ounce silver bar and eight 1-ounce American Gold Eagle Bullion coins for 2022
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If proven guilty, Raines could spend up to 20 years in jail; however, the DOJ notes that actual sentences are frequently lower than the maximum penalty for a federal felony.
