Virginia’s birth injury compensation fund has faced several challenges in the last year. After the CFO pleaded guilty to embezzling millions from the fund, employees have resigned, and families report difficulties accessing funds. A state legislator has requested an investigation of the fund to ensure families still get the support they need.
Virginia’s Birth Injury Fund
The Virginia Birth-Related Neurological Injury Compensation Program was established to help families with children disabled by neurological birth injuries, like cerebral palsy. Many families of these children struggle with the high costs of care for a disabled child, especially those with severe disabilities.
Some families use insurance or settlements from medical malpractice lawsuits. Other families cannot access these sources of compensation or simply do not receive enough to cover all their expenses. The birth injury fund was designed to support these families as they care for a child over their lifetime.
The fund covers medically necessary expenses for qualifying children. These include hospital costs, medical care, rehabilitation, in-home care, and more. The fund reports that families who receive funds get more compensation than they would through the tort system.
Millions Embezzled, CFO Sentenced
In October 2024, the CFO and deputy director of the birth injury program pleaded guilty to stealing $6.7 million from the fund. John Hunter Raines was responsible for overseeing $650 million in investments for the fund.
Raines stole from the fund between January 2022 and October 2023 using 59 separate wire transactions. He sent the money to personal accounts and used it to buy vehicles and cryptocurrency, to pay for limousine and private jet transportation, and more. He also gambled nearly $100,000 from the fund.
Raines also obstructed the auditing process for the fund, which has delayed current audits by three years. He pleaded guilty to money laundering and mail fraud. Raines was sentenced to nine years in prison in March 2025.
During the sentencing hearing, Raines claimed to have alcohol and gambling addiction problems that drove him to steal the money. He apologized to the families who attended the hearing. Sending a message to others in a position to steal money from support funds, the judge went above and beyond the prosecution’s sentencing request.
Ongoing Fund Investigation
Families trying to access the birth injury program for funding for their children have reported delays and other issues. These problems began after the embezzlement scandal and continue to prevent families from getting the money they need to care for their disabled children.
Virginia State Senator Scott Surovell (D-34) recently requested an investigation of the fund by the Office of the State Inspector General. He hopes the office can begin a new audit and determine if additional fraud is occurring. The fund has become more restrictive in paying benefits, while many families report delays. The fund has acknowledged the delays, and an investigation may be pending.
Families of developmentally and cognitively disabled children need timely access to the funds supplied by Virginia’s birth injury program. They hope the ongoing discussion and pending investigation will help speed the process and ensure more deserving families are served.
