Gambling ‘At All Hours of the Day’: Ex-Virginia Prosecutor Caught Stealing Restitution Checks Meant for Victims to Cover His Own Debts Over Two Year Period, Now Faces Decades In Prison
A former prosecutor in Virginia who was accused of embezzling and laundering money intended for crime victims and using the funds to settle his gambling debts recently pleaded guilty to felony charges in connection with the scheme.
James Panagis Jr., who served in the Virginia Beach Commonwealth’s Attorney’s Office from 2015 to 2022, pleaded guilty to embezzlement of more than $500, two counts of uttering a forged check, and two counts of embezzlement by a public officer, according to The Virginian-Pilot.
The charges stem from an investigation the Commonwealth’s Attorney’s Office launched in August 2022, five months after Panagis left the agency “on his own accord.”
City officials said they initiated the probe when they discovered irregularities in Panagis’ files shortly after a victim reported they never received the full amount of restitution owed to them.
A state police agent who investigated the case learned that the former prosecutor used the restitution money to pay off personal debts from online gambling.
The investigation uncovered the specific method Panagis used to conceal the missing restitution funds.
Authorities learned that he would ask defense attorneys or other parties in his cases to give him a check with a blank payee line. In exchange, he would withdraw or reduce their charges.
He wrote out fake names sharing his initials “J.P.” on those blank checks, and would sign them in a way where anyone viewing the signatures could only make out the letters “J” and “P.”
Then, he deposited those checks into his personal account, but reported that the restitution money had been paid in full.
Evidence revealed that he stole checks in the amounts of $560 and $540, money that was supposed to be reimbursed to two women who had been defrauded by an employee. Another check for $585 was also reportedly connected to a case related to damage to a police vehicle.
Authorities audited 600 cases Panagis worked on, which were compared to his bank records and records from 12 online gambling sites. Records revealed that Panagis frequently used BetMGM, and appeared to be gambling “at all hours of the day and night,” according to investigators.
When an investigator interviewed Panagis last summer, he initially said he didn’t remember what happened to the restitution money but conceded that only he could have been the prime suspect based on the evidence.
At some point during the interview, Panagis got emotional and admitted to struggling with alcohol and cocaine.
It’s unclear how much money Panagis stole, but investigators discovered he ran this operation from September 2019 to September 2021.
A grand jury indicted Panagis last year on several felony counts. Some of the charges, including money laundering, were dropped as part of his plea bargain.
He faces up to 60 years in prison and will be sentenced in June.