Former Virginia birth-injury program executive accused of stealing nearly $5 million from employer

NEW KENT COUNTY, Va. (WRIC) — A New Kent County man is accused of embezzling nearly $5 million from a state-administered fund that benefits Virginia children who have been left disabled by a birth injury.

According to the U.S. Department of Justice, 38-year-old John Hunter Raines of the Providence Forge area of New Kent was arrested and charged with felony fraud on Thursday, Aug. 22.

The allegations Raines faces stem from his time serving as the chief financial officer and deputy director of the Virginia Birth-Related Neurological Injury Compensation Program, or Birth-Injury Program, according to the DOJ. This program is a fund administered by the Virginia Workers’ Compensation Commission, which is a state agency.

The Birth-Injury Program benefits the families of infants who experienced brain or spinal cord injuries during birth that resulted in developmental and/or cognitive disability. According to the DOJ, Raines’ role involved overseeing the finances of this program, which included about $650 million in investments in 2023.

Court documents accuse Raines of stealing over $4.8 million from the Birth-Injury Program between January 2022 and at least October 2023.

According to the DOJ, Raines is said to have done this by using his access to the program’s bank account to transfer its funds to bank accounts under his name a minimum of 59 times. He is also accused of using the Birth-Injury Program’s debit card for personal use.

Court documents outline several examples of Raines’ alleged use of these funds, including:

• Purchasing several vehicles, such as eight luxury golf carts for over $160,000 and a 2023 Chevrolet Suburban
• Spending over $100,000 on gambling on the Virginia Lottery and at locations such as the Rivers Casino in Portsmouth and the Colonial Downs Racetrack in New Kent County
• Spending over $9,000 on private limousines, used for such things as taking himself and guests to Virginia-area vineyards
• Purchasing cryptocurrencies like Bitcoin and Dogecoin and transferring those funds to his brokerage accounts
• Spending over $30,000 on a private jet to take his wife and friends to Nashville, Tennessee
• Spending over $60,000 paying down debts like his student loans, mortgage and others
• Spending over $19,000 to purchase eight 2022 1-ounce American Gold Eagle Bullion coins, as well as a 100-ounce silver bar, which are pictured below

If Raines is found guilty, he faces up to 20 years in prison — though actual sentences are often less than the maximum penalty for a federal offense, according to the DOJ.

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