Executive steals $4.8M from fund for injured babies, books private jet rides, feds say
An executive took private jet flights and bought luxury golf carts with nearly $5 million he’s accused of stealing from a compensation program for infants injured during birth, federal officials said.
John Hunter Raines, 38, has now been charged with mail fraud, the U.S. Attorney’s Office for the Eastern District of Virginia said in an Aug. 22 news release.
His attorney had no comment on the case.
Raines was the chief financial officer and deputy director of the Virginia Birth-Related Neurological Injury Compensation Program, according to federal officials.
Investigators say he ran the finances of the fund, which dispenses money to families with children who have cognitive or developmental disabilities as a result of brain or spinal cord injuries sustained during birth.
From roughly January 2022 until October 2023, Raines is accused of making 59 wire transfers from the program’s bank account to his own personal accounts, totaling $4,834,287, according to an affidavit.
He used over $100,000 to gamble at a casino, a racetrack and by playing the Virginia Lottery, officials said. He’s also accused of spending at least $160,000 of the money to buy eight luxury golf carts.
In August 2023, he spent about $34,000 for a private jet to fly him, his wife and friends from Richmond to Nashville and back, investigators said.
Shortly after the trip, he sent the jet company an email with the subject line: “Another one would be fun,” according to the affidavit.
He asked for a quote for a flight from Richmond to Las Vegas for at least 10 people, joking that he was going to draw from his kids’ college funds, officials said.
“Kidding, (I’m) already hinting they should figure out a skill that people need and take a business class or two later in life and really make some money with no debt,” he wrote in the email, according to the affidavit.
Investigators said he used the embezzled funds to pay $62,744 of his student loans.
He’s accused of making a variety of other purchases using the company’s money, including:
Bitcoin and Dogecoin cryptocurrency
A $15,000 payment on his mortgage
A $30,000 payment toward a Chevrolet Suburban
Nearly $10,000 in limousine services
American Gold Eagle Bullion coins and a 100-ounce silver bar
The precious metal items were delivered by the United Parcel Service in February 2022, officials said.
Raines is from New Kent County, about a 30-mile drive southeast from Richmond.
This story was originally published August 23, 2024 at 4:16 PM with the headline "Executive steals $4.8M from fund for injured babies, books private jet rides, feds say."