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Justice News

Department of Justice
U.S. Attorney’s Office
District of Connecticut

FOR IMMEDIATE RELEASE
Tuesday, June 18, 2019

Pain Foundation Founder and CEO Pleads Guilty to Fraud and Tax Charge Related to Embezzlement Scheme

John H. Durham, United States Attorney for the District of Connecticut, Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that PAUL GILENO, 46, of Brewster, New York, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to fraud and tax evasion charges stemming from a $1.5 million embezzlement scheme.

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.  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 is not scheduled.

Gileno is released pending sentencing.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Topic(s): 
Financial Fraud
Tax
Component(s): 
Updated June 18, 2019