By: Richard L Smith
Pantaleo "Leo" Pellegrini, a former top official in Hoboken, admitted in federal court to embezzling funds from the city and filing a fraudulent tax return.
According to a statement from the U.S. Department of Justice, the guilty plea was entered before U.S. District Judge Michael E. Farbiarz in Newark.
Pellegrini, who previously served as the city's Director of Health and Human Services and Director of the Department of Environmental Services, used his position to misappropriate public funds for personal gain.
Federal prosecutors revealed that he redirected payments meant for the city into accounts he controlled and submitted fraudulent invoices for personal expenses, which were unknowingly paid by Hoboken.
He also failed to report the embezzled income on his personal tax returns, further compounding his offenses.
As outlined in court documents, Pellegrini held significant oversight responsibilities in Hoboken, including managing public recreation facilities and overseeing programs such as a youth soccer league and an adult soccer league.
Both leagues were funded through participant fees, with the youth league supported by city funds as well. Pellegrini exploited his position by diverting participant fees from the adult soccer league into a private business account linked to a soccer entity he controlled.
The scheme involved instructing an individual associated with the adult soccer league to write checks with the payee left blank. According to the Justice Department's statement,
Pellegrini later filled in the name of his private soccer entity and deposited the funds into his business account without the individual's knowledge.
Additionally, Pellegrini operated a private travel soccer club and directed the city to pay expenses associated with the club, falsely representing them as eligible for reimbursement.
This resulted in Hoboken unknowingly covering tens of thousands of dollars in costs for Pellegrini's private club and directly paying him through fraudulent invoices.
Prosecutors stated that Pellegrini's actions led to significant financial losses for the city and understated income on his tax returns.
The charge of embezzlement carries a potential prison sentence of up to 10 years and a fine of $250,000 or twice the financial gain or loss caused by his actions, whichever is greater.
The U.S. Department of Justice emphasized the seriousness of Pellegrini's misconduct, noting the betrayal of public trust involved in the case. Sentencing is expected to follow in the coming months.