Executive pleads guilty to stealing millions from babies fund in Virginia, feds say
A former executive pleaded guilty to stealing millions from an injured babies benefit program that he worked for and using it on a plethora of personal expenses, federal prosecutors said.
In August, John Hunter Raines, 38, was accused of stealing more than $4.8 million from the program. Now, he’s pleaded guilty to mail fraud and money laundering offenses, according to an Oct. 8 news release from the U.S. Attorney’s Office for the Eastern District of Virginia.
“My client takes full responsibility for his actions and will continue to seek treatment for the addictions that contributed to his offenses,” Raines’ attorney, William Mann, told McClatchy News.
According to court documents, Raines was the chief financial officer and deputy director of the Virginia Birth-Related Neurological Injury Compensation Program. The program gives money to families of infants who are developmentally or cognitively disabled due to brain or spinal cord injuries from the birth process.
Raines oversaw and had access to the company’s bank account, debit card and approximately $650 million in investments in 2023, investigators said.
McClatchy News reached out to the Virginia Birth-Related Neurological Injury Compensation Program for comment on Oct. 9, but did not immediately receive a response.
Federal prosecutors said Raines embezzled money from January 2022 through October 2023 through various ways, including wire transfers, using the company’s debit card and delaying state mandated audits.
He caused the program’s audits to be delayed by more than three years “by failing to timely provide the Birth-Injury Program’s files to auditors when requested,” prosecutors said.
According to records, Raines used the stolen money to make payments on his personal loans — including a mortgage and student loans — purchase eight luxury golf carts and pay for travel in a private jet and limousine services.
He also used the program’s money to gamble and purchase cryptocurrency, American Gold Eagle Bullion coins and a 100-ounce silver bar, records show.
Raines will be sentenced on Feb. 27. He faces a maximum of 30 years in prison, federal prosecutors said.
This story was originally published October 10, 2024 at 12:10 PM with the headline "Executive pleads guilty to stealing millions from babies fund in Virginia, feds say."
