Ex-Hoboken official gets two years in prison for embezzlement

A former Hoboken official was sentenced to 24 months in federal prison for embezzling money from the city and for filing a false return.

Leo Pellegrini, who served as director of health and human services and director of environmental services, had previously admitted to rerouting $223,500 of Hoboken funds to bank accounts he controlled.

Pellegrini had also submitted about $234,000 in personal expenses that the city “unknowingly paid.”

According to the U.S. Attorney’s office, Pellegrini had “oversight responsibilities” of municipal soccer fields that could be reserved for a fee.  He orchestrated a scheme to divert adult soccer league participation fees intended for the city to a business account on which he was a signatory.

During the same time, Pellegrini owned a private travel soccer club.

“Pellegrini also submitted or caused the submission to the City of Hoboken invoices associated “with his private soccer club, which Pellegrini falsely or fraudulently represented to the City of Hoboken as invoices eligible for reimbursement by the City of Hoboken,” the U.S Attorney’s office said in a statement.  “As a result, the City of Hoboken—at Pellegrini’s direction—unknowingly paid tens of thousands of dollars to the Pellegrini’s private soccer club vendors for its expenses, and also unknowingly paid tens of thousands of dollars directly to Pellegrini through his private soccer club.”

They alleged that Pellegrini used the embezzled funds for meals, entertainment and gambling.

Pellegrini acknowledged that he didn’t pay taxes on the money.  The government estimated his tax at $119,972.

U.S. District Court Judge Michael Farbiarz ordered Pellegrini to pay Hoboken $439,972 in restitution, $119,464 to the Internal Revenue Service, and to forfeit $439,972.

Pellegrini lost a race for Hoboken City Council in 2023.