VIRGINIA BEACH — A former prosecutor pleaded guilty Friday to stealing thousands of dollars from a fund meant for crime victims in order to cover his extensive online gambling debts.
James Spero Panagis Jr., 46, pleaded guilty to five felonies: embezzlement of more than $500, two counts of uttering a forged check and two counts of embezzlement by a public officer.
The charges carry a maximum penalty of 60 years in prison. Five other counts were withdrawn in exchange for Panagis’ plea. Sentencing was set for June 26.
Panagis worked as a prosecutor in Fairfax County for several years before joining the Virginia Beach Commonwealth’s Attorney’s Office in 2015. He left in February 2022 to take a job with Wolcott, Rivers and Gates, a large Virginia Beach law firm. He was fired in August, when he was indicted by a grand jury.
The money came from a fund meant to reimburse victims for expenses that arise from a crime, such as medical bills, lost or damaged property, and funeral costs. The thefts occurred over a two-year period, from September 2019 to September 2021, according to the indictment.
Virginia Beach Commonwealth’s Attorney Colin Stolle said at the time the charges were filed that he’d asked Virginia State Police to conduct an investigation into his former employee after discovering “irregularities” in his files. The irregularities were found after a victim reported they never received the full amount of restitution owed to them.
Stolle also asked that a special prosecutor be appointed, and the case was assigned to the Chesterfield County Commonwealth’s Attorney’s Office.
Panagis turned himself in after he was charged, and was released shortly afterwards on a $10,000 bond. He will be allowed to remain free on bond until his sentencing.
The Virginia State Police agent who investigated the case, First Sergeant A. R. Ashby Jr., testified Friday that Panagis used the restitution money to cover personal debts from online gambling. The Commonwealth’s Attorney’s Office audited 600 cases Panagis worked on, and Ashby compared those records with Panagis’s bank records, along with records obtained from 12 online gambling sites.
The records showed the former prosecutor most frequently used BetMGM, and appeared to be gambling “at all hours of the day and night,” Ashby said.
The investigator also said Panagis manipulated the system to try to conceal the missing money. He said Panagis would ask defense attorneys or the other parties in his cases to give him a check with a blank payee line in exchange for him withdrawing or reducing their charges. He would then fill in a fake name that had the initials “J.P.” to match his own, and he would sign the checks in a way that left only the “J” and “P” legible. He would then deposit the money into his personal bank account but report that the restitution money had been paid in full, according to Ashby.
The evidence presented described stolen checks of $560 and $540 to make whole a business that reimbursed two women who had been defrauded by an employee, and a $585 check to the City of Virginia Beach stemming from a case related to damage to a police vehicle. It’s unclear how much money Panagis stole using this method.
Ashby testified that when he interviewed Panagis at his office last summer, he initially said he didn’t remember what happened to the restitution money but conceded the evidence showed it could only have been him who could’ve taken it. At some point in the interview he became emotional, Ashby said, and admitted to struggling with alcohol and cocaine.
Ashby connected Panagis to resources to help get his gambling and substance abuse under control, and also shared stories of other lawyers who have had similar criminal histories and been able to return to their careers.
Speaking to the judge after the evidence was presented, Panagis said everything Ashby said was true. He said he was “struggling” at the time Ashby interviewed him and that he owes him “a tremendous debt” for helping him through this.
Gavin Stone, 757-712-4806, gavin.stone@virginiamedia.com
Jane Harper, jane.harper@pilotonline.com