By: Tracie Carter
A former Hoboken department head has been sentenced to two years in federal prison for stealing hundreds of thousands of dollars from the city and failing to report the income on his taxes, according to a statement released by the U.S. Department of Justice.
Pantaleo “Leo” Pellegrini, who previously served as Hoboken’s Director of Health and Human Services and Director of Environmental Services, admitted to embezzling public funds and filing a false tax return.
He was sentenced by U.S. District Judge Michael E. Farbiarz in Newark.
Federal prosecutors said Pellegrini orchestrated a scheme to divert approximately $223,500 in city payments into accounts he controlled and charged around $234,000 in personal expenses to the city.
He also avoided paying nearly $120,000 in federal taxes by failing to report the illicit income.
Pellegrini’s misconduct involved recreational programs, including a city-sponsored youth soccer league and an adult soccer league funded by participant fees.
Instead of routing league payments to the city, Pellegrini redirected funds to a private business account tied to him.
He also submitted fraudulent invoices related to his own private soccer club, causing the city to unknowingly reimburse personal and club-related expenses.
According to authorities, Pellegrini used the stolen money on personal luxuries such as entertainment, gambling, and dining, allowing him to maintain a lifestyle beyond his means.