Virginia鈥檚 legislature is seeking an investigation into the Virginia Birth Injury Fund, a troubled state agency that was
The Virginia Birth Injury Fund is meant to help the families of children who suffered devastating injuries during childbirth. Many are incurred as a result of mistakes made by doctors. Children in the fund live with expensive, lifelong disabilities. The fund, which has over $700 million, is meant to support the children鈥檚 therapies, wheelchairs and day-to-day medical needs.
On Tuesday afternoon, Senate Majority Leader Scott Surovell, D-Fairfax, asked the state鈥檚 inspector general to conduct a 鈥渃omprehensive investigation鈥 of the program.
鈥淩ecent events have revealed deeply concerning patterns of fraud and embezzlement within this critical program that serves our Commonwealth鈥檚 most vulnerable children and families,鈥 Surovell wrote.
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Surovell also asked the inspector general to look at how the program distributes funds to parents, citing 鈥渘umerous reports that the program has become exceedingly restrictive in distributing benefits to victims.鈥
鈥淪omething is wrong,鈥 Surovell said.

Surovell
The Times-Dispatch that the agency鈥檚 entire finance team walked out after fewer than two months in their roles. Multiple members of the finance team, who declined to speak on the record, alleged that the fund continues to be mismanaged and that another embezzlement is possible.
The fund hired a public relations firm to attend to the fallout of the embezzlement. Mark Hubbard, the fund鈥檚 retained spokesperson, previously said the fund wouldn鈥檛 comment on the team鈥檚 abrupt departure. In a statement, the agency鈥檚 executive director, Dawn McCoy, wrote the agency would be collaborative with the investigation.
鈥淭he Virginia Birth Injury Fund (VBIF) welcomes and will fully cooperate with any inquiry initiated by the General Assembly of Virginia. VBIF is working diligently to enhance financial controls and standards to improve operations and benefits to the 300 families we serve,鈥 McCoy said.
Sturgis Kidder, a parent of a child in the fund, welcomed the news of the legislature鈥檚 attention.
鈥淪enator Surovell鈥檚 letter is wonderful and hopefully now the Board of Directors of the Program and The Office of the Attorney General will open their eyes to what is going on,鈥 Kidder said.
The Office of the Inspector General previously conducted a review of the fund in the wake of the most recent fraud. In that case, the office ultimately referred the fraud to federal prosecutors, who outlined how the fund鈥檚 former chief financial officer, John Raines, stole nearly $7 million from the fund.

Executive Director Dawn McCoy is seen at a Virginia Birth Injury Fund meeting. In a statement, McCoy said the agency would be collaborative with any General Assembly investigation.
Raines spent the money on private jet travel and luxury golf carts. He pleaded guilty, avoiding a trial.
At his sentencing, Raines testified that the majority of the funds he took went to fuel a gambling habit that had taken over his life. But a federal judge still went above sentencing guidelines to mete out a nine-year prison sentence.
鈥淚 just cannot get past the fact that this money was taken from a benefit program for people who are helpless,鈥 said Judge John A. Gibney Jr. 鈥淭his is not a theft from Bank of America. This is a theft from the people of Virginia.鈥
From the Archives: Richmond then and now

1963/2016 聽Members of the Historic Richmond Foundation examined homes in the 2300 block of East Broad Street. Don Pennell/Shelby Lum

1952/2016 聽Giant steam shovels dug up street in front of post office on Main Street. Staff photo/Shelby Lum

1960/2016 聽Intersection of Main and Third Streets in downtown Richmond. Burnwinkle/Shelby Lum

1967/2016 聽East Main Street downtown near the intersection at Seventh Street. P.A. Gormus Jr./Shelby Lum

1968/2016 聽The National Theater on East Broad Street was about to undergo a major renovation. The building was opened in 1923. Bill Lane/Shelby Lum

1966/2016 聽The northwest corner of Fifth and Broad Streets downtown. Present-day location of the Richmond Convention center. Staff photo/Shelby Lum

1976/2016 聽Tucker Cottage and Third Street Bethel A.M.E. Church in Jackson Ward. Don Pennell/Shelby Lum

1958/2016 聽The corner of 25th and East Grace Streets on Church Hill with St. John鈥檚 Church in the background. Staff photo/Shelby Lum

1942/2016 聽Workmen removed decorative lights on the Richmond Newspapers鈥 building to contribute to scrap metal collection during WWII.聽 Staff photo/Shelby Lum

1948/2016 聽Hanover and Robinson Streets in The Fan was once considered the most dangerous residential intersection in the city. Staff photo/Shelby Lum

1951/2016 聽The west wing of the Virginia State Capitol, which some wanted to expand in 1951. The proposal was ultimately rejected. Staff photo/Shelby Lum

1955/2016聽 Pedestrians scurried across a busy Broad Street intersection in downtown Richmond as Christmas shopping was in full swing. Staff photo/Shelby Lum