Former Virginia birth-injury program executive sentenced for stealing over $6.7 million

Editor's Note: This story has been corrected to reflect the accurate sum of money embezzled, according to the Department of Justice.

RICHMOND, Va. (WRIC) -- A New Kent County man has been sentenced to nine years in prison for embezzling over $6.7 million from a state-run fund intended to support Virginia children who were disabled by a birth injury.

On Wednesday, March 6, 38-year-old John Hunter Raines was sentenced to nine years in prison for money laundering and mail fraud for offenses he committed while serving as the chief financial officer of the Virginia Birth-Related Neurological Injury Compensation Program (Birth-Injury Program), according to the U.S. Department of Justice.

The Birth-Injury Program benefits the families of children who, during the birthing process, experienced a brain or spinal cord injury that resulted in a developmental and/or cognitive disability.

In Raines’ position, he oversaw the finances of the Birth-Injury Program, including around $650 million in investments in 2023.

From at least January 2022 through October 2023, officials said Raines stole over $6.7 million from the program. According to the department, this included using his access to the program's bank account to initiate at least 59 separate wire transactions, sending funds to bank accounts in Raines’ name.

Raines also reportedly used the program debit card for personal gain. Raines spent embezzled program money on various personal expenses. 

The DOJ provided a list of ways Raines spent these embezzled funds. They include:

• Purchasing several vehicles, including eight luxury golf carts for over $160,000 and a 2023 Chevrolet Suburban
• Spending over $100,000 on gambling, including at Rivers Casino in Portsmouth, Colonial Downs Racetrack in New Kent and the Virginia Lottery
• Paying at least $29,000 to an "intimate partner" and tens of thousands of dollars to a bank account in the name of Raines’ wife
• Spending over $9,000 on private limousine services, including to chauffeur Raines and his guests in a Mercedes limousine from Raines’ house to Virginia vineyards
• Making several purchases of cryptocurrency, including Bitcoin and Dogecoin, and transferred funds to his brokerage accounts
• Paying tens of thousands of dollars towards his student loan debt, his mortgage and other loans
• Paying over $125,000 for private jet travel for Raines’ friends and family, including paying over $34,000 to travel with his wife and his friends to Nashville, Tennessee, for three days in a private jet
• Spending over $19,000 to purchase eight separate 2022 1-oz American Gold Eagle Bullion coins and a 100-oz silver bar, which are pictured below:

The private jet John Hunter Raines used to travel with others to Nashville, Tennessee. It was purchased with funds embezzled from a state agency. (Photo: U.S. Department of Justice)

A 2022 1-ounce American Gold Eagle Bullion coin. (Photo: U.S. Department of Justice)

A 100-ounce silver bar. (Photo: U.S. Department of Justice)

According to the DOJ, Raines also obstructed the ability of auditors to conduct state-mandated annual audits of the Birth-Injury Program. By failing to provide requested program files to auditors in a timely manner, Raines “deliberately impeded” the auditing process.

“Due at least in part to Raines’ obstructive conduct, the Birth-Injury Program’s statutorily mandated audits continue to be delayed by over three years,” the DOJ said.

Raines pled guilty to mail fraud and money laundering offenses on Oct. 8, 2024.