Former City Director's Lawsuit Against Hoboken Mayor Is Dismissed

HOBOKEN, NJ — Three months after a former Hoboken city official pleaded guilty to embezzlement, his lawsuit against Mayor Ravi Bhalla has been dismissed, the city said.

In May 2023, longtime Hoboken Health and Human Services Director Leo Pellegrini resigned abruptly from City Hall, without explanation. He had served the city for 14 years.

A year later, Pellegrini filed a lawsuit against Bhalla, accusing him and his administration of various ethical misdeeds.

At the time, the city told Patch that Pellegrini resigned "after being notified he was going to be terminated based upon an investigation, conducted by former state comptroller Matt Boxer, which found reasonable cause to believe the director engaged in unlawful and corrupt conduct in the course of his city employment."

This past December, the U.S. Attorney's Office said that Pellegrini, who for several years oversaw Hoboken's recreation programs, had deposited funds meant for a city adult recreation soccer league into accounts he controlled and that he used for his privately run travel soccer club.

He also "embezzled money from the city of Hoboken by submitting invoices for his personal business expenses, which the city of Hoboken unknowingly paid," the U.S. Attorney's Office said in December.

This past Saturday, the city announced that the civil lawsuit filed by Pellegrini was voluntarily dismissed with prejudice.

The suit had claimed that Mayor Bhalla's administration silenced critics and had conflicts of interest.

Bhalla said over the weekend, “This was a politically driven lawsuit, filed against me by a now convicted felon. When an admittedly corrupt former public official files a frivolous lawsuit, it’s a drain on all of our tax dollars. Mr. Pellegrini’s guilty plea and betrayal speak for themselves. We will continue to prioritize transparency and integrity in every aspect of my administration."

Bhalla is running for state Assembly this November. Five candidates have announced campaigns to replace him in office so far.

Pellegrini is scheduled to be sentenced next month.

The embezzlement count carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, "or twice the gross gain to the defendant or loss to the victim, whichever is greatest," said the U.S. Attorney's Office.

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.

• READ MORE: Pellegrini Pleads Guilty To Embezzlement
• READ MORE: 'Please Don't Contact Me Anymore,' Hoboken Mayor Bhalla Told Former Mayor Zimmer