A top executive defrauded his company millions of dollars that was meant to help sick and injured babies to fund his lavish lifestyle.
John Hunter Raines embezzled a total of $6.7 million over 59 transactions between January 2022 through October 2023, spending the cash on private jets, limousines and gambling debt.
The money was from the Virginia Birth-Related Neurological Injury Compensation Program, designed to support the families of children born with lifelong conditions and medical defects.
In addition to hiring private jets to ferry himself, his wife and friends around, Raines, 38, spent thousands on luxury golf carts, vehicles and cryptocurrency.
At least $29,000 was paid ‘to an intimate partner’, while tens of thousands of dollars was sent to his wife’s bank account.
Raines, a father-of-three, pleaded guilty to mail fraud and money laundering and a federal judge sentenced him to nine years in prison.
‘It is easy to cast Raines’ crimes off as a fraud on an abstract program while losing sight of what the money he stole represents,’ prosecutors said.
‘The $6.7 million Mr. Raines stole would have been invested and paid out for claims in the future.’
In addition to hiring private jets to ferry himself, his wife and friends around, Raines, 38, spent thousands on luxury golf carts, vehicles and cryptocurrency
Prosecutors pointed out the money Raines stole could have funded 79 wheelchair-accessible medical vans or covered expenses for external caregivers to provide more than 270,000 hours of child care.
He was the chief financial officer for Virginia Birth-Related Neurological Injury Compensation Program from 2020 until his termination in 2023 when his crimes were uncovered.
As part of his job, he was responsible for the $700million fund, which is paid for by hospitals, insurers and physicians in an effort to provide meaningful and lasting care to children who become disabled during the birthing process.
There are roughly 300 claimants for the fund, who rely on the cashflow to cover therapies, medical bills, medications and equipment.
‘It was against this backdrop that Raines brazenly stole millions of dollars of funds for his own selfish greed,’ prosecutors told the court.
‘Raines’ actions in this case constitute a monumental betrayal of public trust. Most importantly, Raines betrayed the children who rely on the Birth-Injury Program for survival.’
The money was from the Virginia Birth-Related Neurological Injury Compensation Program, designed to support the families of children born with lifelong conditions and medical defects
Raines’ attorney argued to the court that his actions were driven by ‘insatiable alcoholism and gambling.’
Prior to sentencing, Raines completed a 90 day Alcoholics Anonymous stint.
He has also been selling items from his home in an effort to pay restitution, and volunteering at his church while ‘rededicating himself as a father,’ his lawyer said.
‘He knows that the best way to set an example for his children is to take responsibility for his acts and fully commit himself to a lifetime of alcohol and gambling sobriety.’
