The former police chief and city administrator of Velda City, Missouri, Daniel Paulino, was sentenced on April 23 to 27 months in prison for stealing $307,100 from the city. U.S. District Judge Cristian M. Stevens also ordered Paulino to repay $248,929 to the city after some funds were recovered.
Paulino's sentencing follows a nearly four-year period between 2021 and 2024 during which he misappropriated city money through fraudulent checks, unauthorized direct deposits into his personal account, and misuse of a city credit card for personal expenses. The case highlights issues of oversight in small municipalities and the impact such crimes can have on community trust.
According to court documents, Paulino used various methods to divert funds: three fraudulent checks totaling $1,800; about twenty unauthorized payroll deposits amounting to $30,667; seventeen transfers using a city credit card totaling $37,500 directed toward businesses owned by him or his spouse; fifty-five direct deposits labeled as payroll for his spouse but sent instead to his own account totaling $54,693; and payments including a check for a tow truck used in his private business. He admitted spending the stolen money on travel, automobiles, pool supplies, utilities at home and food.
Assistant U.S. Attorney Hal Goldsmith said in court: “The City’s police chief, sworn to serve the citizens and the community, turned out to be a thief, stealing from the very community and people he was charged with protecting.” In a sentencing memo Goldsmith wrote that while receiving generous compensation for two positions in Velda City—a place where “estimated 1,250 residents have a median household income which is 30% lower than the State of Missouri”—Paulino abused his authority.
Velda City Mayor Derrick Gill described Paulino as “the most powerful appointed official in our local government” with “unchecked access” who caused devastating losses that destroyed public trust and employee morale. Gill added that Paulino created a hostile work environment for officers while depleting resources needed by the department—contributing directly to its dissolution.
Special Agent in Charge Chris Crocker of FBI St. Louis Division said: “Daniel Paulino didn’t mastermind a sophisticated scheme; he abused the trust placed in him and exploited a lack of oversight. As the city’s financial gatekeeper he used taxpayer funds for personal expenses... He stole from a community where one in five residents lives below the poverty line.”
Paulino pleaded guilty last November in U.S. District Court in St. Louis to two counts of wire fraud after an investigation led by the FBI.
The U.S. Attorney's Office for the Eastern District of Missouri advances community well-being by working with entities to prevent crime and improve quality of life according to its official website. The office uses both Thomas F. Eagleton U.S. Courthouse in St. Louis and Rush H. Limbaugh Sr. U.S. Courthouse in Cape Girardeau as noted on its website. It operates under the United States Department of Justice according to official information.
Serving forty-nine counties across eastern Missouri according to its website, it investigates federal crimes such as terrorism or fraud while enforcing civil rights laws as detailed online. Collaboration with law enforcement agencies is central as it works towards preventing crime throughout these counties according to official sources.
