A Hoboken lawsuit filed by a medical cannabis license business just over two years ago alleging that then-Mayor Ravi Bhalla took a “bribe” to quash their license will depose former Health and Human Services Director Leo Pellegrini from federal prison.

By John Heinis/Hudson County View

“1. Leave of Court to Take the oral deposition of federal prison inmate, Pantaleo Pellegrini, at the Federal Correctional Institution – Fort Dix, is provided and same shall be served upon the facility Warden and Legal department,” Hudson County Superior Court Judge wrote in an August 14th order.

“2. The deposition shall be completed by October 15, 2026. If any counsel cannot appear they must obtain coverage. 3. The Court recognizes the deponent as an essential witness to the case at bar for the purposes of granting this Order but makes no findings as to the statements to be provided.”

Nature’s Touch filed suit in July 2024, spurned by claims made by Pellegrini in his own litigation with the city in May 2024, alleging quid pro quo, retaliation, and defamation before pleading guilty to embezzlement last December, all as HCV first reported.

Pellegrini was sentenced to two years in federal prison in January 2025 for embezzling nearly half a million dollars while serving as health director for the City of Hoboken.

While his civil case has been dismissed, Nature’s Touch was given the green light for their case to proceed by the Superior Court of New Jersey Appellate Division at the very end of last year.

Pellegrini, who also sat on Hoboken’s Cannabis Review Board, said through counsel that at a January 14th, 2022 lunch meeting with Bhalla and some of his top staffers, then-Jersey City Mayor Steven Fulop called Bhalla angry about the Nature’s Touch license since it was close to where Story Dispensary would be opening in a building co-owned by his wife.

“At the same meeting, Mayor Bhalla allegedly stated he would be ‘quashing’ Nature’s Touch’s application and that, in exchange, Mayor Fulop promised to provide legal work for Mayor Bhalla’s private law firm,” the December 2025 appellate decision summarizes.

“The statement … is part of a certification made by Pantaleo Pellegrini who has filed suit against the City of Hoboken, has whistle blower status and will be called to affirm the certified statement during discovery and at the time of trial,” the lawsuit says.

The Jersey City Redevelopment Agency (JCRA) approved a $50,000 no-bid contract for the law firm Schenck, Price, Smith, & King LLP, where Bhalla served as of counsel at the time, on April 19th, 2022, a copy of the resolution signed by then-Executive Director Diana Jeffrey says.

Coincidentally, D’Elia’s ruling came on the same day that Hoboken revealed they were parting ways with Corporation Counsel Arlene Quiñones Perez, who was succeeded by Jeffrey on August 17th, both as HCV first reported.

Jeffrey was the head of the agency at the time

As of this writing, the Nature’s Touch case is set to to go trial on December 14th, according to public court records.

“This complaint stems from false claims brought by a convicted felon. They are frivolous in nature and the City will continue to vigorously defend this matter in court,” Bhalla, now an assemblyman in the 32nd Legislative District, said in a statement after the appellate ruling.

Daniel Antonelli, a shareholder and partner at Antonelli Kantor Rivera PC – counsel to the defendants in the case – did not return an email seeking comment on Tuesday.

After this story was published, 2nd Ward Councilwoman Tiffanie Fisher expressed concerns about Antonelli representing all four defendants.

“I believe Antonelli Kantor Rivera’s representation of all four defendants presents a serious conflict of interest and raises significant ethical concerns,” she said.

“Hoboken and its taxpayers’ interests are not aligned with the interests of Bhalla and Fulop, who are accused of using their public power for personal financial benefit. Hoboken should have independent counsel whose sole duty is to protect the City and its taxpayers.”

 

Editor’s note: This story was updated with a comment from 2nd Ward Councilwoman Tiffanie Fisher.