Former Hoboken Health Director Sentenced to Two Years for Embezzlement, Tax Fraud

Leo Pellegrini diverted over $450K from public funds and private league fees, used embezzled money for personal expenses

Pantaleo “Leo” Pellegrini, the former Director of Health and Human Services and Director of Environmental Services for the City of Hoboken, was sentenced to 24 months in federal prison for embezzling public funds and filing a false tax return, according to a statement from U.S. Attorney Alina Habba.

Pellegrini, who previously pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark, admitted to diverting over $223,500 in city payments and submitting an additional $234,432.60 in personal expenses for city reimbursement. He also failed to report the embezzled income on his personal tax returns, resulting in nearly $120,000 in unpaid federal taxes.

As part of his role, Pellegrini oversaw public recreational facilities, including soccer fields used by Hoboken’s Youth Soccer League and Adult Soccer League. Prosecutors say Pellegrini redirected participant fees from the adult league to a business account he controlled, registered under a soccer-related entity linked to him. He also submitted fraudulent invoices tied to a private travel soccer club he owned, leading the city to pay tens of thousands in unauthorized expenses.

According to court documents, Pellegrini used the misappropriated funds for personal luxuries including meals, entertainment, and gambling, far exceeding his legitimate salary.

In addition to the prison sentence, Judge Farbiarz ordered Pellegrini to pay $439,972.60 in restitution to the City of Hoboken, $119,464 to the Internal Revenue Service, and to forfeit $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.