The former CEO of the Middletown-based U.S. Pain Foundation, who pleaded guilty in June to embezzling $1.5 million from the nonprofit he founded, was sentenced Tuesday to about a year in federal prison, authorities said.
Paul Gileno, 47, of Brewster, New York, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 12 months and one day of prison, followed by two years of supervised release, for embezzling approximately $1.5 million from the Pain Foundation and failing to pay federal income taxes.
According to court documents, Gileno embezzled the funds from the nonprofit, which provides support and resources for individuals with pain issues, over a two-year period starting in 2015. He also failed to pay more than $532,943 in federal income taxes on the embezzled income, as well as other income, authorities said.
Gileno in June pleaded guilty to one count of wire fraud and one count of tax evasion.
He is required to pay full restitution to both the foundation and the Internal Revenue Service, as well as tax penalties and interest, authorities said.
Gileno, who is released on bond, will report to prison on Jan. 6.
In a statement, the Pain Foundation said Gileno resigned from his CEO position at the request of the board of directors in May 2018, after his theft came to light.
The organization said it then reported the issue to legal authorities and has fully cooperated with the investigation.
“Today’s judgement is a step in the right direction towards resolution of this matter and we expect that the Court will impose a restitution order in the next few weeks,” U.S. Pain’s interim CEO, Nicole Hemmenway, said in a statement. “In the meantime, our top priority continues to be addressing the needs of people with chronic pain through our free programs and services as we move forward as an organization.”
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
