Middletown CEO Sentenced For $1.5M Embezzlement Scheme: Feds

MIDDLETOWN, CT — The founder and CEO of a Middletown-based non-profit organization has been sentenced to federal prison in connection to a $1.5 million embezzlement scheme and for failing to pay federal income taxes. Paul Gileno, 47, of Brewster, New York, was sentenced Tuesday to 12 months and one day in prison, followed by two years of supervised release, U.S. State’s 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 is required to pay full restitution to both the United States Pain Foundation and the IRS, as well as tax penalties and interest, officials said.

Gileno pleaded guilty in June to one count of wire fraud and one count of tax evasion. Gileno, who is released on bond, was ordered to report to prison on Jan. 6, 2020.