Former Hoboken Health and Human Services Director Leo Pellegrini has pleaded guilty to embezzlement and filing a false tax return, U.S. Attorney Philip Sellinger announced.
By John Heinis/Hudson County View
Pantaleo “Leo” Pellegrini, of Hoboken, pleaded guilty today before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with embezzling money from the City of Hoboken and filing a false tax return.
While working for the City of Hoboken, Pellegrini embezzled money from the city by diverting payments intended for them to bank accounts he controlled.
Pellegrini also embezzled money from the City of Hoboken by submitting invoices for his personal business expenses, which the city unknowingly paid.
According to the criminal complaint, Pellegrini diverted at least approximately $190,000 owed to the City of Hoboken to the Pellegrini Soccer Business Account between March 24th, 2017 and June 10th, 2021.
Additionally, Pellegrini did not report the embezzled money on his personal tax returns, and thereby made and subscribed a false personal tax return.
The criminal complaint also accuses him of not reporting approximately $457,932.60 in income between 2017 and 2021, which means he did not pay a total of $119,454.00 in federal taxes.
Pellegrini had oversight over the City of Hoboken’s Division of Cultural Affairs’ Division of Health; Division of Parks, Recreation & Public Works; Division of Rent Leveling and Stabilization; and Division of Senior Services.
He therefore had 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 all Hoboken residents aged 5 to 13 (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 (the “Pellegrini Soccer Business Account”) and which was registered to a soccer-related entity linked to him (the “Pellegrini Soccer Business Entity”).
At various times, Pellegrini told an individual who operated the Adult Soccer League–“Individual-1”—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, without the knowledge of Individual-1.
During the relevant time period, Pellegrini was also the owner and president of a private travel soccer club that was open to Hoboken residents and non-Hoboken residents (the “Pellegrini Private Soccer Club”).
Pellegrini also submitted or caused the submission to the City of Hoboken invoices associated with the Pellegrini Private Soccer Club, which Pellegrini falsely or fraudulently represented to the City of Hoboken as invoices eligible for reimbursement by the City of Hoboken.
As a result, the City of Hoboken—at Pellegrini’s direction—unknowingly paid tens of thousands of dollars to the Pellegrini Private Soccer Club’s vendors for the Pellegrini Private Soccer Club’s expenses, and also unknowingly paid tens of thousands of dollars directly to Pellegrini through the Pellegrini Private Soccer Club.
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.
The count of embezzlement carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest.
The count of filing a false tax return carries a maximum penalty of three years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest.
His sentencing is scheduled for April 29th, 2025.
Back in May, Pellegrini filed an explosive civil lawsuit against the city alleging quid pro quo, retaliation, and defamation, as HCV first reported.
The filing date was roughly one month before the primary election, where Hoboken Mayor Ravi Bhalla unsuccessfully challenged U.S. Rep. Rob Menendez (D-8).
“Today, justice has been served, as no government employee is ever above the law,” Bhalla said in a statement.
“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.”
He further stated that the city is seeking to have Pellegrini’s civil suit dismissed.
Last year was a tumultuous one for Pellegrini: He resigned abruptly on May 3rd 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.
In the midst of all this, four city council members who are frequent critics of Bhalla called on the FBI and the New Jersey Attorney General’s Office to investigate the allegations both against Pellegrini and the one’s he made against the administration.
“These baseless allegations are based on a frivolous lawsuit with meritless claims by a disgruntled former employee who lost his job because of serious allegations of wrongdoing, identified by respected former federal prosecutor Matt Boxer, and who is currently under criminal FBI investigation,” Bhalla spokesman Horowitz said at the time, referring to a May 1st, 2023 memo from Boxer to city officials that only HCV had obtained a copy of.
cant wait to hear crickets from paul P tiffy and ruben.
complete hypocrites and frauds they are. leo got what he deserved and everyone should know that those three were by leos side during it
All this means is that the top city hall crook on the second floor was angered because no cut for him. His crew kicks up from Hoboken to his kitty jar. The protection racket is ending with new management. Very thoon.
How does Ravi explain $200,000 disappearing on his watch since his time as mayor?
This was happening for years under his watch. Hoboken could have housed many migrants with that money.
Per the Information, the govt has him dead to rights on embezzling $439K from the City of Hoboken, and are asking the Court for the forfeiture of $439K in property or cash.
In addition, he has 5 years of unreported income to the IRS, and owes $119K in taxes PLUS penalties that acrue daily.
It’s unclear if imprisonment is on the table. The alleged scheme to defraud Hoboken and soccer league parents was as obvious as stealing quarters from parking meters. Surprised by the brazenness of the alleged crimes.
https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:cb2efa55-ecd7-43ef-b08b-a3e4fbb8a3a7
If it was so darn obvious why did it go on for so long right under Ravi and Jason’s noses?
Pretty funny to see Bhalla try to spin the corruption and incompetence of his own Administration into some kind of personal victory lap.
There was a time when Mike Russo and family were the worst grifters, but now it seems.like everyone in Hoboken/Hudson politics is. Some for money, others for power. So frustrating, disappointing and disgusting.
Now do Ravi, FBI, before Kash dismantles you and exposes the Edison Eight behind Ravi’s 2017 racist fliers.
The Untouchable Criminal is protected until the changing of the guard in Newark. Ravi should remember his words, “no government employee is ever above the law.”
Saddened by this news, but the larger issue is why things like this always seem to happen in Hudson County? During the 30+ years I have lived here we have had at least 3 Mayors and numerous other public officials go to jail for bad behavior. When does it stop?
Time for Leo to rat out Jason, John, and Ravi!
¡Viva la libertad, carajo!
Dear Mr. Argentine President,
We hope you will be attending the January Inauguration of the 47th President of the United States.
Then you can have a word with the incoming US Attorney General, Pam Bondi.
Godspeed to you both!
This is NJ and corridors from Philadelphia to Boston, NYC, Florida, all the never-ending will not change.
Maybe Ravi should have had better judgement?
Kept Leo for 6 years?
I’m no Ravi fan, but the truth is that this parasite was hired by Dawn Zimmer, who stood by him and published a statement supporting him when he quit his city job. Have we seen a statement from the “queen of Hoboken reform” about this new development?
Based on the time frame in the article the facts show any of the alleged funny business occurred only under the Bhalla Administration.
The thieving began in 2017 when Dawn Zimmer was mayor. She made the original hire, some say as a peace offering to the Barry Family. Zimmer only made one condition with Ravi when she backed out and handed him her endorsement: keep the directors.
No audit of the missing monies turned up until years later, all under Ravi. No one was at the wheel minding the store. People left when Zimmer backed out of her campaign for a third term. The people under Ravi are rotten to the core, self-entitled and unprofessional. But that’s their good side. they have a lot of this underbelly side, some exposed much not. They’re not better than the crimes exposed in this story. Terror Flier, anyone?
So you can blame Dawn Zimmer. One of the worst things you can say is that Dawn Zimmer handed Hoboken over to Ravi. Many in the Reform group vehemently opposed it. They don’t talk about any of this anymore and now Ravi doesn’t talk to her or her husband, the shadow mayor.