Ex-US Pain CEO Headed to Jail

Ex-US Pain CEO Headed to Jail

The former CEO of the U.S. Pain Foundation, Paul Gileno, was sentenced Wednesday to a year and one day of imprisonment. This sentencing follows Gileno’s guilty plea in the District of Connecticut on June 17 to wire fraud and tax evasion. A restitution order will be imposed by the Court in the coming weeks.

Gileno resigned from his position at the request of the Foundation’s Board of Directors on May 31, 2018, after his misappropriation of substantial funds came to light. The organization reported Gileno’s suspected theft to authorities and has fully cooperated with the investigation. Since discovering Gileno’s theft, the Board of Directors has implemented a system to ensure significant financial oversight and responsible stewardship. These checks and balances include: detailed requirements for reimbursement of expenses; a two-step approval process for all disbursements; the separation of duties and internal controls surrounding all financial-related transactions, including a detailed review of monthly financial statements, cash flows, program expenditure reports, and annual budget.

“The 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,” says U.S. Pain’s interim CEO, Nicole Hemmenway. “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.”

The U.S. Pain Foundation advocates for individuals living with chronic illness that causes pain, as well as their caregivers and clinicians. Through the organization’s multiple programs and services, it works to enhance the quality of life for people with pain, improve patient outcomes, address access and affordability issues, and increase public awareness and empathy for the issue of pain.
More on this story later this week.

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Authored by: Staff

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Kristine Anderson

I never trusted PG. I don’t even know why but maybe it was his ego-driven attitudes. I backed out of US Pain a long time ago because of this. Not surprised. Yes, he needs to be punished way more than his sentence.

Bill Viverito

This sentence equates to a slap on the wrist. He should be jailed for 3 years, the period he embezzled from us, surrendered his passport and had house arrest with an ankle collar until the money was paid in full. Oh, when he ran CT Pain he claimed to have RSD. Never saw it.

Bill Viverito

So let’s look at some things. Gileno did this over 3 years, stole $1.9 million, the board found out 7 months prior to 12/18 and claim they are the reportees of the fraud. Heard some conflicting information in some comments. I read them all. He can live in Cabo with umbrella drinks by the summer with good behavior. I met him several and had no idea he was disabled in any way.

To our community,

In the interest of transparency, we want to share an updated statement posted today on our website regarding the misappropriation of funds of nearly $1.9 million over a three-year period by the founder and former CEO of U.S. Pain Foundation.

The statement provides the organization’s 2016 and 2017 Form 990 Information Returns and further details about the extent and timeline of the misappropriation of funding.

In addition, the statement outlines steps taken to address the issue. U.S. Pain reported the misuse of funds to federal authorities on June 1, 2018. Through counsel, the organization has fully cooperated with authorities and is also working with counsel to obtain restitution.

Bill Viverito

To Refresh y’all’s Memory

U.S. Pain Foundation
A Message from the U.S. Pain Foundation
To our incredible community,

For the past seven months, I have had the privilege of serving as interim CEO of the U.S. Pain Foundation. I take this role and responsibility incredibly seriously. This organization and its mission mean so much to me.

With that said, this has been a challenging time for the organization. I want to make sure you hear from me personally about the facts surrounding the situation.

On Friday, December 7, the Board of Directors and I posted a statement on the U.S. Pain website sharing that earlier this year, we were dismayed to discover financial irregularities involving the former CEO of U.S. Pain. The Board of Directors immediately hired an independent attorney and a forensic accountant to investigate this individual. The findings were clear that the former CEO had misused funds from the U.S. Pain Foundation. The Board concluded that the individual had repeatedly misled and concealed information from the Board of Directors and staff. The Board demanded and received the former CEO’s immediate resignation.

Since then, we have been working diligently to rectify the situation. We brought the actions of the former CEO to the attention of federal authorities and continue to cooperate with authorities. Other steps taken include seeking restitution of the misused funds; implementing a more robust system of checks and balances; and hiring an interim chief financial officer, new counsel, and a new tax accountant.

In the interest of transparency, I do want to respond to several questions that we have received.

We have not previously commented on these matters on the advice of counsel, due to the ongoing investigation. The organization has been working diligently with its interim chief financial officer and new accountant to prepare the 2016 and 2017 Returns.

I would like to know what free programs? As far as the Gileno 1yr sentence it will be lowered on good behavior so he’ll get out sooner. As far as restitution if he keeps a job then they can garnish his wages but if he gets paid under the table then there’ll be no way to garnish his wages. goes the person wanting to be repaid US Pain Foundation would have to keep track of where he goes BC the court system doesn’t do that. The only way to track him is when he pays taxes / social security number shows up in the system. We had a church secretary steal $50,000 and the church is left tracking her Thru the probation officer. Unfortunately somehow she’s got a job at another church an only pays very little back at a time but it shows the court that she is trying to pay & she uses her children as a reason why she’s not paying more. Guess what her husband is a police officer. Judicial system is also broke. Good luck!

Mr. Paul Gileno in the bible a thief has to repay what he stole seven fold. We chronic pain patients have had so much stolen from us, including dignity, adequate pain relief, mercy, peace of mind, years off our life and most glaringly TRUST. We feel like you have reached down into our hearts and souls and stolen as much as our abusers.God will forgive you but you must do whatever it takes to fix the damage you have done. We chronic pain patients are so tired, so physically worn out and emotionally drained. Our bodies ,minds and spirits have been assaulted. We are still pretty tough people though and that is born out of the will to fight. We had to be tough to survive this long. I once overheard an anesthesiologist tell another one that we ( the pain patient) can take more pain than we (them) can take because we live with it every day. He was SO wrong, we cannot take more we are forced to take it.

Robert Schubring

I’ve been in private discussions for several months with a few other activists, all of whom agree with my fundamental point that there must be litigation to protect the rights of patients and that requires money to support a lawyer for several months of solid work. One factor that’s been of paramount importance in these discussions, is that anyone who becomes a paid employee of the group, can not have authority to spend money that our group will raise. The law is very clear about how a nonprofit group works: By definition there is no profit to be paid out. Volunteer donors must populate the Board of Directors and must supervise the paid workers who have jobs at the nonprofit.

What took place at US Pain Foundation is tragic. I fear they feel constrained in what they can do, because they must separate themselves from past illegal activities. Worse yet, the Restitution Order first requires Mr Gileno to find paying employment that a disabled guy like him can do, so that there are funds with which to pay restitution. US Pain may go years before a penny of restitution is paid to them.

Leah Chat

For the record and what its worth, US Pain did not report this, Mr Gileno reported it himself and hired proper accountants and attorneys. It was brought to the attention to the US attorney by Mr Gileno as well not US Pain. The facts are the facts and they should be reported as such. The people are the board have been there for 8 years and the VP has been VP for 9 years and yet only Mr Gileno has taken resposibilty.

ElizabethR

I, too, am surprised that these accounting checks and balances weren’t already in place. I was employed at a nonprofit for 40 years, and there was no way something like this could have occurred. It’s really unfortunate that an organization representing an already-stigmatized and struggling population had to be further denigrated by the illegal behavior of a corporate officer.

Cindy too

This criminal isn’t the only one to have harmed the non-profit he was placed in charge of. Goodwill suffered a similar, very expensive situation not that long ago.

It’s so awful. It also reminds us all to be careful about where we donate our money. Just b/c it’s a good cause doesnt’ mean that the organization spends $ wisely or has appropriate systems in place. There are criminals everywhere, unfortunately.

For all of us who desperately need US Pain and other advocates, it’s an enormous, personal blow.

Bill Viverito

A year and a day is not nearly appropriate for the level of betrayal Mr. Gileno imposed on US Pain Society. I met him several times and his holier than thou attitude at several functions. He didn’t just steal money, he stole our trust, he stole our mission. A wolf in sheep’s clothes, a predator deserves a significantly harsher sentence. The courts were generous. I’m disgusted.

Ann Sable

So, pretty much the same thing, as to, still moving it forward with the same PM strategies but only to try to make it more affordable and some of it free…maybe the psychoanalysis/cognitive behavioral and yet still, the drug rehab and so on and so forth?

Just an honest question here for all of us that has been had by all this ‘hype’.

My husband has been Controller, Treasurer & now Chief Investment Officer for a University Foundation over the past 31+ years so it simply baffles me that these measures weren’t in place INITIALLY. These measures of checks and balances to assure no single person has control over funds are standard practice for not-for-profit organizations. This situation should never have occurred.

Claudia

Good morning is this a JOKE or what?? 😲
.We the chronic pain patients need help .. We come on the site for information positive at that ok so un real Hang in there my brother s and sisters of chronic pain ..yes it SUX ..But we can’t lose faith or hope there is a light at the end of the TUNNEL Gd bless us all.

Jeanette French

thanks a lot Paul Gileno for putting a black mark on a community that is helping chronic pain sufferers, so sorry you were employed by them and that you get the full impact of the law. Like we don’t already have enough on our plate to deal with, now to have the likes of you to tarnish the name of organization, I do hope that part of your sentence is caring for those who have chronic pain for the rest of your life as community service. One day you may just become one of us and then you will see the what the people you hurt have to deal with. I do hope that every cent you took is returned to this organization that is trying to help pain patients, and not remain in your pockets, and that you never serve in a public office seat again.

I would like to ask Miss Hemingway in what way do they address those with chronic pain through free programs and services. From all of the comments I’ve read I don’t see anyone being helped in any way whatsoever.