Former Hoboken director of health arrested for embezzlement

(WPHL) — The former director of health and human services in Hoboken has been arrested for embezzlement and filing a false tax return.

Pantaleo “Leo” Pellegrini, the former Hoboken 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.

According to U.S. Attorney Alina Habba, Pellegrini previously pleaded guilty to embezzlement and filing a false tax return in Newark federal court.

Pellegrini embezzled money from the City of Hoboken by diverting approximately $223,500 in payments intended for the city to his own bank accounts.

He also submitted $234,432.60 of personal expenses, which the city “unknowingly paid”.

Pellegrini did not report any of the embezzled money on his tax returns, avoiding approximately $119,972.60 in taxes due.

As part of his responsibilities, Pellegrini worked with certain public recreational facilities that could be reserved by residents and non-residents for a fee. Through this program, the City of Hoboken Department of Parks, Recreation & Public Works sponsored a non-profit recreation soccer league, which was funded by the City of Hoboken and participant fees. There was also an “Adult Soccer League” funded by participant fees.

Pellegrini developed a scheme to divert the Adult Soccer League’s participant fee payments for the City of Hoboken to his own business account.

During this time, Pellegrini, who was also the Owner and President of a private travel soccer club, submitted invoices associated with his private soccer club as invoices eligible for reimbursement by the City of Hoboken.

In turn, the City of Hoboken unknowingly paid tens of thousands of dollars to Pellegrini’s private soccer club vendors and Pellegrini himself for its expenses.

U.S. Attorney Alina Habba says Pellegrini used the embezzled funds on personal expenses, including meals, entertainment, and gambling, allowing him to live far beyond his means.

In addition to his prison term, Pellegrini is ordered to pay back $439,972.60 to the City of Hoboken, $119,464 to the Internal Revenue Service, and a forfeiture of $439,972.60.