A shocking case of financial misconduct has rocked the Virginia Birth Injury Fund (VBIF), raising serious concerns about oversight and accountability. John Hunter Raines, the former Chief Financial Officer of the program, was sentenced to nine years in federal prison for embezzling $6.75 million from the fund intended to support children who suffer neurological injuries at birth. This program, designed to provide lifetime care for affected families, has now suffered both financial and operational setbacks due to Raines’ actions.
The Richmond-based VBIF manages a $700 million fund, financed by healthcare providers, hospitals, and insurance carriers. The fund covers medical expenses, caregiver services, therapy, and equipment for approximately 300 active claimants.
The US District Court for the Eastern District of Virginia issued a sentence longer than what prosecutors initially sought and emphasized the need for deterrence. During the sentencing, Judge John Gibney stated: “We need to send a message: you cannot steal from agencies of the Commonwealth and get away with it. Let the message go out today that you can’t steal from charity.”
The impact of Raines’ crime extends beyond the financial loss. Families who rely on VBIF now face stricter reimbursement policies and delays, leading to additional stress and uncertainty.
As a law firm dedicated to advocating for those impacted by negligence and fraud, we believe this case underscores the urgent need for stricter oversight and safeguards. Programs like VBIF exist to support the most vulnerable members of our community, and we must ensure they are protected from financial misconduct.
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