77°
Pantaleo “Leo” Pellegrini, Hoboken’s former Director of Health and Human Services and Director of the Department of Environmental Services, was sentenced to 24 months in prison for embezzling money from the City of Hoboken and filing a false tax return, U.S. Attorney Alina Habba said on Tuesday, June 17.
Pellegrini had previously pleaded guilty to the charges before U.S. District Judge Michael E. Farbiarz in Newark federal court.
Authorities say Pellegrini ran the scheme while overseeing Hoboken’s public recreational facilities, including a youth and adult soccer league.
“While working for the City of Hoboken, Pellegrini embezzled money from the City of Hoboken by diverting approximately $223,500 in payments intended for the City of Hoboken to bank accounts he controlled,” officials said.
He also “embezzled money from the City of Hoboken by submitting approximately $234,432.60 in his personal expenses, which the City of Hoboken unknowingly paid.”
Officials said Pellegrini created a business account linked to a soccer entity associated with him, and directed adult soccer league fees there instead of the city’s accounts.
At the same time, Pellegrini owned a private travel soccer club and “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.”
“As a result,” officials said, “the City of Hoboken—at Pellegrini’s direction—unknowingly paid tens of thousands of dollars to 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.”
Authorities said Pellegrini used the funds on “personal expenses including meals, entertainment, and gambling, allowing him to live far beyond his means.”
He also failed to report the stolen money on his personal tax returns, “thereby causing his tax returns to understate a substantial amount of the income he received.”
In addition to his prison sentence, Judge Farbiarz ordered Pellegrini to pay $439,972.60 in restitution to the City of Hoboken, $119,464 to the IRS, and forfeit $439,972.60. He also imposed a term of supervised release.
The FBI and IRS-Criminal Investigation handled the investigation. The case was prosecuted by Assistant U.S. Attorneys Mark J. McCarren and Matthew Specht of the Special Prosecutions Division.
Click here to follow Daily Voice Ridgewood and receive free news updates.
