A Providence Forge man has been arrested for his alleged embezzlement of funds from his former employer, the Virginia Birth-Related Neurological Injury Compensation Program (Birth-Injury Program).
John Hunter Raines, 38, the Chief Financial Officer and Deputy Director of the Birth-Injury Program is charged with felony fraud in a criminal complaint.
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.
According to Court documents, Raines’ role required that he oversee the finances of the Birth-Injury Program, including approximately $650 million in investments in 2023.
From at least January 2022 through at least October 2023, Raines allegedly stole over $4.8 million from the Birth-Injury Program, including by using his access to the Birth-Injury Program bank account to initiate at least 59 separate wire transactions, sending funds to bank accounts in Raines’ own name. Raines also allegedly used the Birth-Injury Program debit card for personal gain.
According to the criminal complaint, Raines spent embezzled Birth-Injury Program money on various personal expenses.
For example, Raines allegedly purchased numerous vehicles, including eight luxury golf carts for over $160,000 and a 2023 Chevrolet Suburban, allegedly spent over $100,000 on gambling, including at Rivers Casino in Portsmouth, Virginia, Colonial Downs Racetrack in New Kent, Virginia, and the Virginia Lottery, allegedly spent over $9,000 to hire private limousines, including to chauffer Raines and his guests to Virginia-area vineyards, and allegedly made numerous purchases of cryptocurrency, including Bitcoin and Dogecoin, and transferred funds to his brokerage accounts.
Raines also allegedly paid over $30,000 for private jet travel to take his wife and friends to Nashville, Tennessee, for three days, allegedly paid over $60,000 to pay down his student loan debt, his mortgage, and other loans and allegedly spent over $19,000 to purchase eight separate 2022 1-oz American Gold Eagle Bullion coins and a 100-oz silver bar.
If convicted, Raines faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
