Date: Aug. 22, 2024 Contact: newsroom@ci.irs.gov Richmond, VA — A Providence Forge man was arrested today related to his alleged embezzlement of funds from his former employer, the Virginia Birth-Related Neurological Injury Compensation Program (Birth-Injury Program). John Hunter Raines, the chief financial officer and deputy director of the Birth-Injury Program, is charged in a criminal complaint with felony fraud. The Birth-Injury Program is a fund administered by the Virginia Workers’ Compensation Commission, paying monetary compensation to families of infants who suffer from brain or spinal cord injuries resulting from the birth process that render the infant developmentally and/or cognitively disabled. According to Court documents, Raines’ role required that he oversee the finances of the Birth-Injury Program, including approximately $650 million in investments in 2023. From at least January 2022 through at least October 2023, Raines allegedly stole over $4.8 million from the Birth-Injury Program, including by using his access to the Birth-Injury Program bank account to initiate at least 59 separate wire transactions, sending funds to bank accounts in Raines’ own name. Raines also allegedly used the Birth-Injury Program debit card for personal gain. According to the criminal complaint, Raines spent embezzled Birth-Injury Program money on various personal expenses. For example: Raines allegedly purchased numerous vehicles, including eight luxury golf carts for over $160,000 and a 2023 Chevrolet Suburban; Raines allegedly spent over $100,000 on gambling, including at Rivers Casino in Portsmouth, Virginia, Colonial Downs Racetrack in New Kent, Virginia, and the Virginia Lottery; Raines allegedly spent over $9,000 to hire private limousines, including to chauffer Raines and his guests to Virginia-area vineyards; Raines allegedly made numerous purchases of cryptocurrency, including Bitcoin and Dogecoin, and transferred funds to his brokerage accounts; Raines allegedly paid over $30,000 for private jet travel to take his wife and friends to Nashville, Tennessee, for three days; Raines allegedly paid over $60,000 to pay down his student loan debt, his mortgage, and other loans; and Raines allegedly spent over $19,000 to purchase eight separate 2022 1-oz American Gold Eagle Bullion coins and a 100-oz silver bar. If convicted, Raines faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kareem A. Carter, IRS Criminal Investigation (CI) Special Agent in Charge of the Washington D.C. Field Office; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Michael C. Westfall, State Inspector General for the Commonwealth of Virginia, made the announcement. Assistant U.S. Attorneys Avi Panth and Kashan K. Pathan are prosecuting the case. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
