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Leo Pellegrini, who also served as director of the Department of Environmental Services diverted payments intended for the city to bank accounts he controlled, US Attorney Philip Sellinger said. Pellegrini also embezzled money from the city by submitting invoices for his personal business expenses, which the city unknowingly paid, Sellinger said.
Pellegrini also pleaded guilty to filing a false tax return in Newark Federal Court.
Pellegrini's position meant he had oversight over the city's recreational facilities, including soccer fields. Pellegrini developed a scheme to divert funds from a city run adult soccer league to his own accounts, Sellinger said. Pellegrini told an individual who operated the adult soccer league to sign checks for the rental of public recreation facilities but leave the payee blank for Pellegrini to fill in later. Pellegrini later filled in the name of the Pellegrini Soccer Business Entity and deposited the checks into the Pellegrini Soccer Business Account, Sellinger said.
While running the scheme, Pellegrini was also the owner and president of his own private soccer club, Sellinger said. Through submitting phony invoices, the city unknowingly paid tens of thousands of dollars to fund to Pellegrini himself or to help him pay expenses for the club, Sellinger said.
“Today, justice has been served, as no government employee is ever above the law,” said Hoboken Mayor Ravi Bhalla. “I extend my sincere appreciation to the FBI, U.S. Attorney’s Office, and all law enforcement personnel for their diligent work during the course of the investigation.”
Last year, Pellegrini abruptly resigned from his positions and later filed a lawsuit against the city, citing wrongful termination and accusing the mayor of corruption. A spokeswoman for the city said they hope to have his lawsuit dismissed.
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