Pantaleo “Leo” Pellegrini, the former Director of Health and Human Services and Director of Environmental Services for the City of Hoboken, has been sentenced to 24 months in federal prison for embezzling public funds and filing a false tax return, according to an announcement by U.S. Attorney Alina Habba.
Pellegrini pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark, admitting to diverting over $223,500 in city funds and submitting an additional $234,432.60 in personal expenses for reimbursement from the city. In addition to misappropriating municipal money, he failed to report the embezzled income on his federal tax returns, resulting in nearly $120,000 in unpaid taxes to the IRS.
Federal prosecutors detailed how Pellegrini abused his position overseeing Hoboken’s recreational programs, including the Youth and Adult Soccer Leagues. He redirected adult league registration fees into a private bank account registered under a soccer entity linked to him and used those funds for personal expenses including meals, entertainment, and gambling. He also submitted false invoices tied to a private travel soccer club he owned, causing the city to unknowingly pay tens of thousands of dollars in unauthorized reimbursements.
Authorities say Pellegrini’s conduct went on for years and far exceeded the scope of his legitimate city salary. In addition to his prison sentence, Judge Farbiarz ordered him to pay $439,972.60 in restitution to the City of Hoboken, $119,464 to the IRS, and to forfeit an additional $439,972.60. He will also serve a term of supervised release following incarceration.
The case was investigated by the FBI and IRS Criminal Investigation units in Newark and prosecuted by Assistant U.S. Attorneys Mark J. McCarren and Matthew Specht of the Special Prosecutions Division. Federal officials emphasized that Pellegrini’s actions represented a serious breach of public trust and underscored the importance of accountability in local government.
