MISSOURI — A former police chief and city administrator of Velda City has been indicted for allegedly embezzling more than $313,000 from city funds through a complex scheme involving fraudulent credit card charges, fake payroll deposits, and unauthorized checks.
Daniel Paulino, 51, was charged Wednesday in U.S. District Court in St. Louis with three counts of wire fraud.
According to the indictment, Paulino used the city’s credit card to make approximately 828 personal purchases totaling $145,428.
He is also accused of transferring nearly $44,000 in city funds to businesses he or his wife owned, including R & B Towing, Renovations-STL, and D and H Towing.
Federal prosecutors allege Paulino issued around $34,000 in city checks to pay for personal expenses, including $25,500 for a tow truck that was later registered to his private business.
He also reportedly authorized Automated Clearing House (ACH) payments and made fake payroll deposits—$30,667 for himself and $54,693 for his wife, who allegedly did not perform any work for the city’s public works department.
In total, the indictment claims Paulino orchestrated over 900 unauthorized financial transactions without the knowledge or approval of city officials, using the money for travel, cars, pool supplies, utilities, and food.
To mask the scheme, Paulino allegedly transferred more than $58,000 back to city accounts from his own.
Paulino served as Velda City’s police chief until the department was dissolved in 2024 and was appointed city administrator in 2021.
The FBI is investigating the case, which is being prosecuted by Assistant U.S. Attorney Hal Goldsmith. Paulino has not yet entered a plea, and the charges are accusations. He is presumed innocent until proven guilty.
