Ex-Hoboken Director Pocketed Funds Meant For City Programs: Feds

HOBOKEN, NJ — After mysteriously resigning in 2023, former Hoboken Health and Human Services Director Leo Pellegrini pleaded guilty on Thursday to embezzlement and to filing a false tax return, officials said.

The U.S. Attorney's Office said that Pellegrini, who for several years oversaw Hoboken's recreation programs, 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 Thursday afternoon.

Since Pellegrini failed to report the embezzled funds on his tax returns, he was also subject to the tax charge, prosecutors said.

A year after Pellegrini left in 2023, the city told Patch that he 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."

City spokeswoman Marilyn Baer said at the time, "In fact, this matter was referred to and is being investigated by the FBI."

The city made those comments after Pellegrini filed a lawsuit against Bhalla last spring.

Oddly, Pellegrini also ran for 1st Ward City Council last year. But he did not respond to candidate questions.

Pellegrini will be sentenced in April 2025.

The embezzlement count 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," 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.

Pellegrini worked for the city for 14 years, but over the years, some of his duties were divided up.

Hoboken hired a new director to take over recreation in spring 2022.

City Responds

On Thursday afternoon, the city sent a response to residents. The message reads, in full:

Today, the City of Hoboken was informed that former Director Leo Pellegrini pled guilty in Newark federal court to charges of embezzlement and filing a false tax return. From the very moment irregularities were discovered pertaining to Mr. Pellegrini, the City took the swift action to retain former state comptroller Matt Boxer to conduct a thorough investigation, which concluded there was likely unlawful and corrupt conduct related to his city employment. The matter was promptly referred by the City to the FBI and U.S. Attorney’s Office.

Mr. Pellegrini resigned after being notified he was going to be imminently terminated.

After an investigation spanning several months, the City's beliefs were confirmed by the U.S. Attorney's Office District of New Jersey.

“Today, justice has been served, as no government employee is ever above the law,” said Mayor Ravi S. Bhalla. “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.”

Additionally, the City is in the process of filing a frivolous litigation notice to dismiss Mr. Pellegrini’s sensational and completely unsubstantiated lawsuit against the City, which was meant to distract from his corrupt actions as a City employee.

Read The Complaint And Release

Read the U.S. Attorney's release and complaint here.