Daniel Paulino was ordered to repay nearly $249,000 after admitting he used city money for personal costs.
ST. LOUIS, MO — A former Velda City police chief and city administrator was sentenced Thursday to 27 months in federal prison for stealing $307,100 from the small north St. Louis County city he once helped run.
U.S. District Judge Cristian M. Stevens also ordered Daniel Paulino, 52, to repay $248,929 to Velda City, after some of the money was recovered. Paulino pleaded guilty in November to two counts of wire fraud. Prosecutors said the theft drained city funds, damaged public trust and played a role in the collapse of Velda City’s police department in 2024.
Paulino was appointed city administrator in 2021 while also serving as police chief. Prosecutors said he earned about $95,000 a year in the dual role, then used that authority to move public money into his own accounts and businesses tied to him and his spouse. Assistant U.S. Attorney Hal Goldsmith said in court that Paulino was “sworn to serve the citizens and the community” but “turned out to be a thief.” Paulino admitted the money went toward travel, automobiles, pool supplies, home utilities, food and beverage charges, and other personal expenses.
Federal records laid out several parts of the scheme. Prosecutors said Paulino caused three city checks totaling $1,800 to be issued to him without authority. They said about 20 direct deposits totaling $30,667 were sent to his personal bank account as extra payroll. On 17 occasions, he used a city credit card to transfer $37,500 to two businesses owned by him and his spouse. Prosecutors also said 55 direct deposits totaling $54,693 were routed to his account as supposed payroll for his spouse. Another $25,500 city check paid for a 2007 International tow truck used in Paulino’s private towing business. Investigators said the full loss reached $307,100.
Velda City Mayor Derrick Gill wrote in a victim impact statement that Paulino had been “the most powerful appointed official in our local government” and had “unchecked access to virtually every aspect of City government.” Gill said the losses were devastating for the city and hurt morale among employees. He also said Paulino created a hostile work environment for police officers while depleting money needed to staff and equip the department. The police department was dissolved in 2024, and the city later relied on other agencies for public safety coverage.
The case put a spotlight on the finances of Velda City, a municipality of about 1,250 residents. Goldsmith wrote in a sentencing memo that the city’s median household income is about 30% lower than Missouri’s statewide median. Chris Crocker, special agent in charge of the FBI St. Louis Division, said Paulino “abused the trust placed in him and exploited a lack of oversight.” Crocker said Paulino used taxpayer funds for vacations, vehicles and repairs to his swimming pool, taking money from a community where about one in five residents lives below the poverty line.
Paulino’s attorney, Marc Johnson, asked the court for probation, saying Paulino had accepted responsibility and was prepared for the judge’s decision. After the sentencing, Paulino gave only a brief comment, saying he had said everything in court. Johnson said Paulino had hoped for a different outcome but was ready for the prison term. The sentence was far below the maximum punishment for wire fraud, which can carry up to 20 years in prison for each count, but federal judges weigh guidelines, losses, admissions and other factors before imposing a sentence.
The hearing also raised questions about Paulino’s work after leaving Velda City. His attorney said in court that Paulino has worked for the nearby Hillsdale Police Department since 2024, but not as an officer and not in a role handling money. The attorney said Paulino has been cleaning and filing. Gill said Velda City officials were uncomfortable with the arrangement because Hillsdale is next to Velda City. Goldsmith said the situation was surprising. Hillsdale Police Chief John Bernsen did not immediately provide a public explanation for the employment arrangement.
The FBI investigated the case, and Goldsmith prosecuted it for the U.S. Attorney’s Office for the Eastern District of Missouri. Paulino now faces a federal prison term and a restitution order of $248,929, with Velda City waiting to recover what remains of the stolen money.
Author note: Last updated April 25, 2026.