Middletown CEO Pleads Guilty In $1.5M Embezzlement Scheme: Feds

MIDDLETOWN, CT — The founder and CEO of a Middletown-based non-profit organization has pleaded guilty to federal charges in connection to a $1.5 million embezzlement scheme, according to authorities. Paul Gileno, 46, of Brewster, New York, waived his right to be indicted and pleaded guilty this week in Bridgeport federal court to fraud and tax evasion charges, U.S. States Attorney for Connecticut John H. Durham announced.

According to court documents and statements made in court, Gileno was the founder and Chief Executive Officer of the United States Pain Foundation, a Middletown-based nonprofit organization designed to find support and resources for individuals with pain issues.

“Between approximately 2015 and 2017, Gileno embezzled more than $1.5 million from the foundation,” officials wrote in a news release. “He also failed to pay more than $532,943 in federal income taxes on the embezzled income, and other income, for the 2015 through 2017 tax years.”

Gileno pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. Gileno also faces a fine, an order of full restitution to both the United States Pain Foundation and Internal Revenue Service, as well as tax penalties and interest. A sentencing date has not yet been scheduled.

Gileno has been released pending sentencing.