Pantaleo "Leo" Pellegrini, who formerly served as the Director of Health and Human Services and Director of the Department of Environmental Services in Hoboken, has pleaded guilty to charges of embezzlement and filing a false tax return. The plea was entered before U.S. District Judge Michael E. Farbiarz in Newark federal court.
Court documents reveal that Pellegrini diverted payments meant for the City of Hoboken into bank accounts he controlled. He also submitted invoices for personal business expenses to the city, which were unknowingly paid by Hoboken. Furthermore, he failed to report this embezzled money on his personal tax returns.
Pellegrini oversaw various divisions within the city, including those related to cultural affairs, health, parks, recreation, rent leveling and stabilization, and senior services. During his tenure, he managed public recreational facilities like soccer fields available for reservation by both residents and non-residents for a fee.
A scheme orchestrated by Pellegrini involved redirecting participant fees from an adult soccer league intended for the city into a business account linked to him. He instructed an individual associated with the league to leave payee details blank on checks for facility rentals so he could later fill them out with his entity's name.
In addition to his public role, Pellegrini owned a private travel soccer club open to both residents and non-residents. He falsely represented invoices related to this club as eligible for reimbursement by the city, resulting in substantial payments made unknowingly by Hoboken to vendors associated with his club and directly to himself.
The embezzlement charge carries a potential sentence of up to 10 years in prison and a fine of $250,000 or twice the gross gain or loss involved. The false tax return charge could result in up to three years in prison with similar financial penalties. Sentencing is set for April 29, 2025.
U.S. Attorney Sellinger acknowledged the efforts of FBI special agents led by Acting Special Agent in Charge Nelson I. Delgado and IRS-Criminal Investigation special agents under Special Agent in Charge Jenifer L. Piovesan in conducting the investigation that led to Pellegrini's guilty plea.
Assistant U.S. Attorneys Mark J. McCarren and Matthew Specht from the Special Prosecutions Division are representing the government in this case.