Former Hoboken Health Director Pellegrini sentenced to 2 years for embezzlement

16

Former Hoboken Department of Health and Human Services Director Leo Pellegrini received a two-year prison sentence for embezzling hundreds and thousands of dollars from the city, Interim U.S. Attorney Alina Habba announced.

By John Heinis/Hudson County View

Pellegrini previously pleaded guilty to embezzlement and filing a false tax return before U.S. District Judge Michael E. Farbiarz in Newark federal court, which was announced in December, but signed in August, both as HCV first reported.

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, according to court documents.

Pellegrini 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.

Additionally, Pellegrini did not report the embezzled money on his personal tax returns, and thereby made and subscribed a false personal tax return and avoided approximately $119,972.60 in taxes due.

Pellegrini’s oversight responsibilities related to certain public recreational facilities, including soccer fields that could be reserved by both Hoboken and non-Hoboken residents for a fee paid to the City of Hoboken.

Through this arrangement, the City of Hoboken Department of Parks, Recreation & Public Works sponsored a non-profit recreation soccer league open to Hoboken youth (the “Youth Soccer League”), which was funded by the City of Hoboken and participant fees.

Also during the charged time period, an adult soccer league open to Hoboken and non-Hoboken residents (the “Adult Soccer League”) was in operation, which was funded from participant fees.

Pellegrini developed a scheme to divert the Adult Soccer League’s participant fee payments intended for the City of Hoboken to a business account on which he was a signatory which was registered to a soccer-related entity linked to him.

During the relevant time period, Pellegrini was also the owner and president of 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.

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.

Pellegrini used the embezzled funds on personal expenses including meals, entertainment, and gambling, allowing him to live far beyond his means.

Moreover, Pellegrini intentionally did not disclose and report the income from the above-described embezzlement scheme, thereby causing his tax returns to understate a substantial amount of the income he received.

In addition to the prison term, Farbiarz ordered restitution of $439,972.60 to the City of Hoboken, restitution of $119,464 to the Internal Revenue Service, and forfeiture of $439,972.60.

Farbiarz also ordered a term of supervised release, with a report date currently set for September 22nd, court documents show.

“I thank and commend everyone involved in ensuring that justice was served. This sentence sends a clear and uncompromising message: no government employee is above the law, ” Mayor Ravi Bhalla said in a statement.

“In Hoboken, if you steal from the public, you will be held accountable to the fullest extent possible. While some may feel the punishment could have gone even further, let there be no doubt that this is a serious warning to anyone who thinks they can abuse the public’s trust.”

The last two years were tumultuous for Pellegrini: He resigned abruptly on May 3rd, 2023  with no explanation, with the city council then approving an emergency contract with the law firm of Matthew Boxer, New Jersey’s first comptroller, the same day, as HCV first reported.

He was hired to investigate the circumstances of Pellegrini’s departure. Two weeks later, the council approved an $85,000 settlement for a vendor who allegedly received a two-year deal from Pellegrini without approval from the administration or council.

Just a week later, Bhalla said the Hoboken City Futbol Club, of which Pellegrini was the president at the time, owed the city $76,000, which Pellegrini disputed.

Pellegrini also finished in a distant 3rd place in the race for the Hoboken 1st Ward council seat in 2023, which Paul Presinzano ended up winning in a December runoff.

Late this afternoon, Hoboken Councilwoman-at-Large Emily Jabbour, a mayoral candidate, gave a lengthy statement on Pellegrini’s sentencing, exclaiming that she led the way for the administration to investigate his conduct, something that wouldn’t happen if she is elected.

” …  I shined the spotlight from my seat on the Council, which drove the change in personnel and oversight that ultimately allowed the Administration to fully investigate the corruption that was taking place. With the support of involved and engaged parents, I stepped up and took the action needed to help bring in a parent-driven organization for our travel soccer program that would allow the season to happen,” she said.

“Hoboken has come too far to turn back. The history of corruption tied to past political figures has left a lasting stain on our city’s reputation. That era was marked by backroom deals, self-serving politics, and an erosion of public trust. I am committed to making sure we never go back to a time when residents could not count on their government to be honest, transparent, and working in their best interest. Hoboken deserves better, and I will do everything I can to protect the progress we have made.”

Subsequently, another mayoral candidate, 2nd Ward Councilwoman Tiffanie Fisher, stating that this should be “a wake-up call” for the Mile Square City moving forward.

“What happened under Director Pellegrini’s watch is more than just a scandal, it’s a wake-up call. Hoboken needs a mayor who leads with vigilance, demands accountability, and doesn’t look the other way. I’m not running to manage the status quo. I’m running to end it,” she declared.

“As a former CFO and independent voice on the council, I’ve asked the tough questions and challenged a system that too often protects itself. Im running to be a different kind of mayor, one that puts residents first, fights for transparency, and builds a city government that works as hard as the people who live here. I’ve challenged this system before, and I won’t stop now. Some candidates think it’s enough to clean up after corruption. I’m here to prevent it.”

Editor’s note: This story was updated with a comment from Hoboken Councilwoman-at-Large Emily Jabbour and then 2nd Ward Councilwoman Tiffanie Fisher.

16 COMMENTS

      • Why the anti-Semitism? This doesn’t help Ravi who has already moved on to his new role as a defender of Hamas. Stick to what you’re good at like the Ravi Terror Flier.

        • Poor gefilte horse living on one decades old memory of a political stunt. How do we know it wasn’t you walking around in your favorite maid outfit with your shopping cart and non-functioning radio handing out fliers? No one else really cares but you are completely obsessed. it’s pretty obvious now: Gefilte horse did the flier!

          • The Ravi Terror Flier guy who always posts under fake Jewish, Hispanic & other ethnic surnames (does he do Italian- his actual ethnicity? lol) IS the Ravi Terror Flier mastermind, creator and distributer… that is the explanation for his decade- old, finger- pointing obsession… that his dirty trick backfired and failed to elect his favored candidate. That is the only explanation that makes sense. The Ravi Terror Flier guy did the dirty deed, is guilty as sin and cannot stop reliving his crime. Remember Terror Flier guy, crime doesn’t pay.

        • Confusing day huh? Jewish girl in the morning, Jewish guy in the afternoon, back to Jewish girl in the evening. You know you can’t get gender affirming care until you settle on a gender right? Why don’t you do that first. But don’t hand out any more fliers. That election was 20 years ago.

          • The Ravi insiders sure do cry a lot when that 2017 Ravi Terror Flier comes up.

            One of the 2017 Edison Six named in a similar Juicy Smoallay flier release the SAME week.

            What is Ravi’s relationship with Poondi the same guy who also contributed to the Bhalla campaign?

            What a remarkable coincidence!

            https://patch.com/new-jersey/edison-metuchen/councilman-boe-members-named-edison-racist-flyer-probe

            Shouldn’t the Hudson Country Prosecutor’s Office follow up and get answers?

          • Finally, real progress on the flier! It was right there all along hiding in plain sight: you keep bringing it up because you feel super-guilty about it. Even though it happened like 30 years ago. You did it!

            It’s ok, trust me, other than you absolutely no one remembers it. Naturally as the perp you’re still full of self-loathing. But don’t forget, the flier had your trademark lack of computer skills so no one knew what your point was or if you even had one. Just do two hail marys and forget it. Everyone else already did.

            BTW, Ravi doesn’t need help. He’s joining the state assembly. Are you going to chase him down there? Remember, they won’t allow your shopping cart in the assembly room.

          • It’s good that Hoboken people bring up the Ravi Terror Flier. Worst kept secret in town. The RICO investigation should start! Bunch of criminals.

  1. Crickets from Dawn and Stan.

    And what about these clowns. Chief Clown: Tiffanie Fisher. Minion Clown Ruben Ramos, Minion Clown Paul Presinzano.

    Do these clowns have an integrity? Do the just not care about the public? They called for an AG investigation based on the allegations of a convicted felon. Politicians are the worst.

    https://hudsoncountyview.com/4-hoboken-council-members-ask-ag-and-fbi-to-probe-bhalla-allegations-from-lawsuit/

  2. Fisher flipped faster on this than a waffle maker at a free Holiday Inn breakfast. She was pounding her fist defending Leo not too long ago, just so she could attack Ravi. Takes one to know one.

LEAVE A REPLY