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closeup of Businessman in handcuffs arrested for financial fraud

For almost 40 years, the Virginia Birth-Related Neurological Injury Compensation Program has provided much-needed financial assistance to families with children who suffer specific types of birth injuries. Referred to as the Birth-Injury Program, it remains an important avenue for support when certain injuries occur during labor, delivery, or immediate post-delivery, and are caused by a doctor’s mistake.

While the Virginia Birth-Injury Program has had a positive and profound impact since its inception, it has recently been in the spotlight for disheartening reasons. On October 9, 2024, two months after his arrest, John Hunter Raines pled guilty to mail fraud and money laundering. He stole over $4.8 million from the Virginia Birth-Injury Program from at least January 2022 through October 2023.

As the program’s former chief financial officer and deputy director, Raines made at least 59 wire transactions to send money to his own bank accounts. His crimes were made possible because of his executive position, which gave him access to the Birth-Injury Program’s accounts.

The nearly $5 million in stolen funds that Raines, 38, pled guilty to embezzling were used for numerous personal expenses, including:

  • Vehicle purchases (eight luxury golf carts, and a Chevrolet Suburban)
  • Gambling over $100,000 at multiple casinos
  • Payment of at least $24,000 to an intimate partner
  • Private limo services for himself and his guests
  • Cryptocurrency purchases
  • Payment towards various debts, including his mortgage and student loans
  • Private jet travels for himself, friends, and family, costing over $125,000
  • Purchases of American Gold Eagle Bullion coins and a 100-ounce silver bar

As part of Raines’ role with the Virginia Birth-Injury Program, he oversaw approximately $650 million in investments in 2023. With the extensive financial impacts of birth injuries, these investments are crucial to fund the ongoing medical needs of children and adults. After all, physiotherapy, surgeries, occupational therapy, partial or full-day nursing care, medications, and special equipment are all common costs associated with birth injuries. Even changes and upgrades to vehicles and homes may be required to accommodate physical mobility issues or to make basic, everyday care possible.

Discovery of his embezzlement came from a fiscal audit of the program’s accounts. As per Virginia Code §38.2-5010(B), an independent certified public accountant selected by the program’s Board of Directors is to perform an audit each fiscal year. But when the auditors requested files from Raines, he purposely impeded their work, and he was eventually arrested for his crimes in August 2024. He’s scheduled to be sentenced on February 27, 2025. Federal crimes of this kind carry a maximum sentence of 30 years imprisonment, though actual penalties aren’t typically this lengthy.

Given the high costs of birth injuries that require a lifetime of medical care, the Virginia Birth-Injury Program alleviates much of the financial burden of these injuries. However, there are specific eligibility requirements, including the type of injury and who caused it. Many families do not qualify for support through the Virginia Birth-Injury Program, and instead, must take legal action to recover compensation.

Addressing the High Cost of Birth Injuries

Far too often, medical malpractice causes birth injuries in Virginia, Washington D.C., and across the country. Failure to properly monitor a baby or mother during labor or delivery, improper use of forceps or vacuum extractors, and mistakes during c-sections can have devastating results.

Depending on the type of birth injury, a child’s neurological, physical, developmental, and/or mental health may be affected. They may also have behavioral issues, and/or learning disabilities.

Often, the best way to ensure a child gets the vital care they need is by filing a birth injury lawsuit. While some are mild and have temporary symptoms, other birth injuries can be severe, leading to lifelong, permanent disabilities and health struggles.

Sadly, insurance isn’t nearly enough to cover what a child with a birth injury needs throughout their life, and without financial support, either the child suffers further, or the family experiences crippling debt. Parents may feel hesitant to take legal action, but if a mistake was made by someone on their medical team, a medical malpractice lawsuit may be the only way to protect the child and family, both now and in the future.

Alternatively, when a spinal cord or brain injury is caused by a doctor during childbirth, the Virginia Birth-Injury Program may be a possible avenue for compensation. It was put in place to address medical malpractice insurance premiums and the influx of medical malpractice lawsuits in the 80s. However, there are eligibility requirements and criteria that must be met.

Since each birth injury and the circumstances surrounding them are unique, speaking with a birth injury lawyer is highly encouraged. An attorney will assess the circumstances and evidence and determine whether joining the Virginia Birth-Injury Program is possible and help apply for coverage. But in many cases, a birth injury lawsuit is the only, as well as most effective, option to get the compensation families are entitled to, while also holding the responsible party accountable for their negligence. For information on filing a birth injury lawsuit, or to better understand how to receive compensation for a birth injury, contact the birth injury attorneys at Paulson & Nace at (202) 463-1999.

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