Jessica D. Aber, U.S. Attorney | U.S. Attorney for the Eastern District of Virginia
A former executive of the Virginia Birth-Related Neurological Injury Compensation Program has been sentenced to nine years in prison for embezzling over $6.7 million from the organization. John Hunter Raines, 38, from Providence Forge, was found guilty of using his position as Chief Financial Officer and Deputy Director to siphon funds for personal use.
Court documents revealed that between January 2022 and October 2023, Raines initiated at least 59 wire transactions transferring money into his own accounts. He also misused a program debit card for personal expenses such as purchasing luxury vehicles, gambling, and funding private jet travel.
Raines' expenditures included buying eight luxury golf carts worth over $160,000 and a Chevrolet Suburban. He spent more than $100,000 on gambling activities at locations like Rivers Casino in Portsmouth and Colonial Downs Racetrack in New Kent. Additional spending included $29,000 paid to an intimate partner and significant amounts transferred to an account under his wife's name.
He also used program funds for cryptocurrency investments, student loan payments, mortgage settlements, and other loans. Notably, he spent over $125,000 on private jet trips with friends and family and purchased precious metals valued at over $19,000.
The investigation highlighted Raines' obstruction of mandatory audits required by Virginia Code § 38.2-5015(B), which mandates annual financial audits by an independent certified public accountant selected by the board of directors. His actions delayed these audits by more than three years.
Raines pled guilty to mail fraud and money laundering offenses on October 8, 2024. The announcement was made by Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Damon E. Wood from the U.S. Postal Inspection Service; Kareem A. Carter from IRS Criminal Investigation; and Michael C. Westfall from the Commonwealth of Virginia's Office of State Inspector General after Senior U.S. District Judge John A. Gibney Jr.'s acceptance of the plea.
The case was prosecuted by Assistant U.S. Attorney Avi Panth alongside former Assistant U.S. Attorney Kashan K. Pathan.
Further information is available through the U.S Attorney’s Office for the Eastern District of Virginia or through PACER using Case No. 3:24-cr-138.
