Ex-Virginia Beach prosecutor indicted by grand jury on embezzlement, money laundering charges

VIRGINIA BEACH, Va. (WAVY) — A former prosecutor in the Virginia Beach Commonwealth’s Attorney’s Office is accused of multiple financial crimes, including embezzlement and money laundering.

James Panagis was indicted on Monday by a Virginia Beach grand jury, Virginia Beach Commonwealth’s Attorney Colin Stolle announced Tuesday night.

Panagis was charged with four counts of embezzlement by a public officer, four counts of embezzlement >= $500, uttering a forged check, and money laundering-conduct a financial transaction, proceeds from felony activity.

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The charges stem from Panagis allegedly taking restitution money that belonged to victims while he was employed in the commonwealth’s attorney’s office. Stolle says Panagis was employed from August 22, 2015, and February 16, 2022.

Stolle says he called for the investigation into Panagis on August 2022, after discovering irregularities on Panagis’ files.

“I immediately requested the Virginia State Police conduct a criminal investigation and asked that a Special Prosecutor be appointed,” Stolle said in a statement. “I also immediately contacted the Virginia State Bar lead ethics counsel who advised me to turn this matter over for their review after the conclusion of the criminal investigation.”

The Chesterfield Commonwealth’s Attorney’s Office has been asked to handle the prosecution of the case.

Stolle says he can’t say more about the case, due to pending special prosecutor’s appointment, but that his office has fully cooperated in the investigation. He did say that there were no disciplinary issues with Panagis during his time with the office and he left on his own accord.

“Prosecutors, in particular, must practice law with the utmost integrity in order for the justice system to work, and that is what I expect from the prosecutors in my office. While ethical restraints prevent me from commenting on a pending investigation, I will be available to answer questions when this matter is concluded.”

Virginia Beach-based law firm Wolcott Rivers Gates meanwhile announced Panagis was fired from their office on Tuesday, and that they had no further comment until the end of the judicial process.

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