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Ex-CFO stole $6.7M, blew cash on lottery, casinos, and private jet trips

He gambled on a lavish lifestyle — spending big on the lottery, casinos, and gold — until the odds ran out.

A sign at the Birth-Injury Program offices in Virginia.
A sign at the Birth-Injury Program offices in Virginia. Photograph credit to WTVR CBS 6.
Todd Betzold
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Most people spend years hoping to hit the jackpot — but one Virginia man treated the lottery like just another luxury expense. As the CFO of a state program meant to help families of infants with severe birth injuries, John Hunter Raines had access to millions.

Instead of safeguarding those funds, he helped himself to a $6.7 million payday, fueling a lavish lifestyle of private jets, luxury cars, and high-stakes gambling. Now, he's cashed in his luck for a nine-year prison sentence.

Stealing funds from his former employer

John Hunter Raines, 38, was the Chief Financial Officer and Deputy Director of the Birth-Injury Program in Virginia. This program provides money 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.

While working for the program, Raines was in charge of overseeing the finances, which included about $650 million in investments in 2023.

According to court documents, from at least January 2022 to October 2023, Raines stole over $6.7 million from the Birth-Injury Program. He had access to the Birth-Injury Program bank account and initiated at least 59 separate wire transactions during that time. Raines was sending these funds to bank accounts in his own name.

In addition, Raines was using the program's debit card for personal use.

A long list of personal expenses

Raines was living quite a lavish lifestyle during this time. According to authorities, he spent the embezzled money on various personal expenses, which included:

  • $100,000 spent on gambling, which included casinos, horse tracks, and Virginia Lottery tickets;
  • Purchased numerous vehicles, including eight luxury golf carts for over $160,000 and a 2023 Chevrolet Suburban;
  • Paid over $125,000 on private jet travel for his friends and family, which included a trip to Nashville, Tennessee, with his wife and his friends. For that trip, he paid $34,000 for three days in a private jet;
  • Raines spent over $9,000 on private limousine services;
  • He also paid at least $29,000 to an intimate partner and then tens of thousands to a bank account in his wife's name;
  • He paid tens of thousands of dollars towards his mortgage, student loan debt, and other loans;
  • Raines bought cryptocurrency and transferred funds to his brokerage accounts, and
  • He spent over $19,000 to buy eight separate 2022 1-oz American Gold Eagle Bullion coins and a 100-oz silver bar.

In total, Raines stole over $6.7 million in funds from the Birth-Injury Program while he was employed there.

A delay in the audits

So, how was Raines able to get away with this? The program was required by Virginia law to have an audit of the program's accounts completed each fiscal year by an independent certified public accountant that was selected by the program's board of directors.

While the board did select these auditors, Raines deliberately impeded the audit process by failing to give the program's files to the auditors in a timely manner when they were requested.

Because of this conduct, the audits have been delayed and continue to be delayed by over three years.

A guilty plea and sentencing

On October 8, 2024, Raines pled guilty to mail fraud and money laundering and was set to be sentenced in February 2025.

The sentencing was delayed, but on March 5, 2025, a federal judge sentenced Raines to nine years in prison for embezzling money from the Birth-Injury Program.

Enjoy playing the Virginia Lottery, and please remember to play responsibly.

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