VIRGINIA BEACH — A former city prosecutor indicted this week on charges accusing him of taking money meant for crime victims is alleged to have stolen the funds over a two-year period, according to court documents.
James Panagis Jr., 46, was indicted Monday on multiple charges, including embezzlement by a public official, passing forged checks and money laundering. He turned himself in later that day and was released on a $10,000 bond, according to court documents.
Shortly after the indictment was issued, Panagis was fired from the law firm of Wolcott Rivers Gates, where he handled appeals, traffic and criminal cases, and civil litigation, according to his LinkedIn profile. He began working for the firm in February 2022, immediately after leaving the Virginia Beach Commonwealth’s Attorney’s Office.
Emily Munn, one of two attorneys Panagis hired to represent him, declined to comment on the case Thursday.
Panagis was admitted to the Virginia State Bar in 2006, and worked as a prosecutor in Fairfax County before joining the Virginia Beach prosecutor’s office in 2015, online records show. He was listed as being in good standing on the bar’s website Thursday, and had no previous disciplinary action against him.
The indictment alleges the crimes occurred between September 2019 and September 2021. A checklist for bail in Panagis’ court file said he “diverted” victim restitution payments to a personal account. The document also said he’d given voluntary statements to law enforcement officers.
How Panagis would have been able to access the funds isn’t clear. Defendants often are ordered to pay restitution to victims, but prosecutors typically aren’t involved in the collection process. The funds are meant to compensate victims for expenses that arise from a crime, such as medical bills, lost or damaged property, or funeral costs.
In a statement issued late Tuesday, Virginia Beach Commonwealth’s Attorney Colin Stolle wrote that he called for an investigation of Panagis in August 2022, after discovering “irregularities” in the former prosecutor’s files. He asked Virginia State Police to conduct the investigation, and also requested that a special prosecutor be appointed.
Chesterfield County’s Commonwealth’s Attorney’s Office was chosen to handle the case.
Panagis had been scheduled for an arraignment Thursday, but it was postponed because none of the attorneys involved was available, and because a substitute judge will need to be appointed by the Supreme Court of Virginia. No new date has been set.
Stolle said in his statement there were no disciplinary issues with Panagis during the 6½ years he was employed by the office. He also said Panagis left on his own accord.
Jane Harper, jane.harper@pilotonline.com
