CAMDEN — Atlantic City Mayor Frank Gilliam Jr. resigned Thursday, just hours after he pleaded guilty in federal court to defrauding a local youth basketball program of more than $87,000 and using the money to fund a luxurious lifestyle.
Gilliam, 49, pleaded guilty to one count of wire fraud in U.S. District Court — a charge that carries a maximum sentence of 20 years in prison — and posted a $100,000 unsecured bond for his release. Judge Joseph H. Rodriguez scheduled his sentencing for Jan. 7.
"It is with a heavy heart that I tender my resignation as Mayor of the City of Atlantic City, effective immediately," Gilliam wrote in a letter filed with the city clerk Thursday. "I would like to apologize to the residents of the great City of Atlantic City who deserve stability and respect. My sincere apologies to each constituent that voted for me and had high hopes in my tenure."
Council President Marty Small Sr. will be sworn in as mayor at noon Friday at City Hall.
According to court documents, Gilliam collected $87,215 between 2013 and 2018 in donations for the AC Starz Basketball Program, a nonprofit he incorporated in 2011. Instead of using the money for the program, Gilliam bought designer clothing, expensive meals and personal trips, authorities said.
"When a scheme depletes charity for children, it's unconscionable. But when the fraud is perpetrated by someone the public trusts, it damages the community's confidence in their public servants. This defendant betrayed the trust of his community and of people who wanted to improve the lives of children," said FBI Special Agent in Charge Gregory W. Ehrie.
The wire fraud charge stems from multiple incidents, including a 2014 fax in which Gilliam solicited a donation from a victim in Philadelphia, a 2016 email to the principal of a corporate contributor and the use of a debit card Dec. 26, 2017 — days before he was sworn in as mayor — to make a $568.31 purchase at a clothing store in Tinton Falls, Monmouth County, that was processed through an out-of-state server.
Gilliam did not comment during the court proceeding other than answering "Yes, your honor" or "No, sir" to Rodriguez's questions and responding, "I plead guilty," when asked to enter his plea.
The mayor's wife, Shawna, a state judiciary employee, sat in the first row of the court room by herself while her husband addressed the judge.
State Attorney General Gurbir Grewal filed an application Thursday afternoon in state Superior Court under New Jersey's Forfeiture of Public Office Statute to remove Gilliam.
Gov. Phil Murphy, during a news conference Thursday afternoon, said Gilliam's actions were "despicable" and called on the mayor to resign. The state has been in control of Atlantic City since 2016.
"He has squandered the trust and confidence of his community and of his administration to lead that community," Murphy said. "Atlantic City is a strong and resilient community that is on the rise after years of stagnation ... but this progress can only continue with leadership whose sole focus is on what he or she can do for the betterment of all residents of Atlantic City and not for themselves."
Harry Rimm, Gilliam's attorney, said his client "is accepting responsibility for his actions and is genuinely remorseful," but that Gilliam's guilty plea related "only to his conduct as a private citizen, not conduct in his official capacity." Rimm said the mayor has started paying restitution and, "in advance of sentencing, Mr. Gilliam has paid back almost half of the restitution amount that the parties have agreed is owed."
The FBI and IRS Criminal Division raided Gilliam's Ohio Avenue home Dec. 3, 2018, and recovered $41,335 in cash. Terms of the plea agreement stipulated the seized money be used toward restitution.
Thursday's events were the latest in a tumultuous mayoral tenure for Gilliam.
Even before being sworn in as mayor in January 2018, Gilliam was accused of stealing a $10,000 check from his own political party, which he claimed was a mistake and later returned. An Atlantic County judge dismissed a criminal complaint in April 2018 for lack of probable cause.
In November 2018, Gilliam and Councilman-at-large Jeffree Fauntleroy II were captured on security cameras outside Golden Nugget Atlantic City engaged in a melee with three employees of Haven Nightclub. Complaints of simple assault and harassment against the two officials were dismissed in a Cape May County municipal court. Fauntleroy pleaded guilty to an obscure local ordinance and paid a $500 fine.
A female entertainment manager at Haven — described as having a "close personal relationship" with the mayor — filed a civil suit against Gilliam in March, claiming she lent him $5,000 and was never repaid. The parties settled out of court before the matter went to trial.
Staff Writers Molly Bilinski, Michelle Brunetti-Post and Colt Shaw contributed to this report.
A look back at Frank Gilliam's political career
AC Meeting

Atlantic City Mayor Frank M. Gilliam, Jr. speaks to residences before The State DCA Town Hall at Uptown School, Tuesday Sept 24, 2019. Edward Lea Staff Photographer / Press of Atlantic City
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AC Meeting

Atlantic City Mayor Frank M. Gilliam, Jr. speaks to residences before The State DCA Town Hall at Uptown School, Tuesday Sept 24, 2019. Edward Lea Staff Photographer / Press of Atlantic City
AC Meeting

Atlantic City Mayor Frank M. Gilliam, Jr. speaks to residences before The State DCA Town Hall at Uptown School, Tuesday Sept 24, 2019. Edward Lea Staff Photographer / Press of Atlantic City
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Bishop Dennis J. Sullivan and Atlantic City Mayor Frank Gilliam make their way down to the beach on Mississippi Avenue after the Mass held in Boardwalk Hall, for the row out for the Wedding of the Sea (August 15, 2019)
Atlantic City Experience exhibit opened to the public

Gilliam Atlantic City officials and dignitaries, including Mayor Frank Gilliam were on hand as lobby renovations are unveiled at Jim Whelan Boardwalk Hall, and the Atlantic City Free Public Library’s “Atlantic City Experience” exhibit opened to the public July 24, 2019.
Frank Gilliam Jr.

Mayor Frank Gilliam Jr. declares June 28 ‘Hard Rock Day’ in Atlantic City.
mayor_Hard Rock Day

Hard Rock turned 1 today with the announcement of a $1-million sweepstakes. Atlantic City Mayor Frank Gilliam proclaimed June 28 'Hard Rock Day.'
press conf 4

Hard Rock turned 1 today with the announcement of a $1-million sweepstakes. Atlantic City Mayor Frank Gilliam proclaimed June 28 'Hard Rock Day.'
Atlantic City Implementation Plan Press Conference

Mayor Frank Gilliam Jr. spoke at the Atlantic City Implementation Plan, which will serve as an accountability tool the public can use to monitor the progress of projects aimed at improving the city’s prosperity and quality of life. Special Council Jim Johnson on right. April 23, 2019 (Craig Matthews / Staff Photographer)
Atlantic City Implementation Plan Press Conference

Mayor Frank Gilliam Jr. spoke at the Atlantic City Implementation Plan, which will serve as an accountability tool the public can use to monitor the progress of projects aimed at improving the city’s prosperity and quality of life. April 23, 2019 (Craig Matthews / Staff Photographer)
Atlantic City Implementation Plan Press Conference

Mayor Frank Gilliam Jr. spoke at the Atlantic City Implementation Plan, which will serve as an accountability tool the public can use to monitor the progress of projects aimed at improving the city’s prosperity and quality of life. April 23, 2019 (Craig Matthews / Staff Photographer)
Mayor Frank Gilliam Jr.

On Dec. 3, nearly a dozen FBI and IRS agents raided the home of Atlantic City Mayor Frank Gilliam Jr., but no charges have been filed.
Atlantic City Implementation Plan Press Conference

Mayor Frank Gilliam Jr. spoke at the Atlantic City Implementation Plan, which will serve as an accountability tool the public can use to monitor the progress of projects aimed at improving the city’s prosperity and quality of life. April 23, 2019 (Craig Matthews / Staff Photographer)
Atlantic City Implementation Plan Press Conference

Mayor Frank Gilliam Jr. spoke at the Atlantic City Implementation Plan, which will serve as an accountability tool the public can use to monitor the progress of projects aimed at improving the city’s prosperity and quality of life. April 23, 2019 (Craig Matthews / Staff Photographer)
Blow Bubbles 4 Autism at MLK School

Pat Tweedle and Atlantic City Mayor Frank Gilliam blew bubbles with MLK students, who simultaneously blew bubbles for Autism Awareness Day and the national Blow Bubbles 4 Autism event. Each year, schools take part in the event, which has roots in Ventnor with Faces 4 Autism founder Isabelle Mosca, by blowing bubbles in unison. April 2, 2019 (Craig Matthews / Staff Photographer)
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Stephen F. Dougherty, center, executive director of the SJTA, flanked by Brian K. Jackson, left, chief operating officer of Stockton University’s Atlantic City campus, and Mayor Frank Gilliam, says the platforms will help support resurging osprey populations.
Blow Bubbles 4 Autism at MLK School

Pat Tweedle and Atlantic City Mayor Frank Gilliam blew bubbles with MLK students, who simultaneously blew bubbles for Autism Awareness Day and the national Blow Bubbles 4 Autism event. Each year, schools take part in the event, which has roots in Ventnor with Faces 4 Autism founder Isabelle Mosca, by blowing bubbles in unison. April 2, 2019 (Craig Matthews / Staff Photographer)
ACPD hearing

Atlantic City Mayor Frank Gilliam Jr., left, speaks with community activist Charles Goodman while Officer Huan Le listens before an administrative disciplinary hearing Thursday.
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Atlantic City Mayor Frank Gilliam and Councilman Kaleem Shabazz talk to a small group of city residents about how they can help shape the plan to build a 40,000-square-foot grocery store on CRDA owned land in the next 18 months (March 21, 2019)
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Pictured from left are Erica Priolo, board members Sharon Baxter, Lois Ridgway and Sulin Yao, Linda Gemmel, Mayor Frank Gilliam, Atlantic City Day Nursery Director Alice Armstrong and Claudine Keenan.
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Atlantic City Mayor Frank Gilliam speaks at the press conference abut the new Atlantic City Blackjacks Arena League football team at Ocean Resort Casino Thursday Mach 7, 2019. Press of Atlantic City / Edward Lea Staff Photographer
Gilliam

‘We’re happy the mayor was exonerated, as we knew he would be, of any illegal or untoward conduct,’ said Vincent Campo, left, attorney for Mayor Frank Gilliam Jr. ‘The mayor simply wants to get back to serving the people of Atlantic City.’
Atlantic City mayor, councilman appeared in court on fight charges

Atlantic City Mayor Frank Gilliam, background, and Councilman Jeffree Fauntleroy II did not comment after their brief appearance Jan. 29 in North Wildwood municipal court.
Atlantic City mayor, councilman appeared in court on fight charges

Atlantic City Mayor Frank Gilliam went into Wildwood Municipal Court on Tuesday. Jan. 29, 2019 (Craig Matthews / Staff Photographer)
Atlantic City mayor, councilman appeared in court on fight charges

Atlantic City Mayor Frank Gilliam and lawyer Vincent Campo leave the courthouse in North Wildwood, where Gilliam’s assault case is being heard to avoid conflicts of interest.
Atlantic City mayor, councilman appeared in court on fight charges

Atlantic City Mayor Frank Gilliam and lawyer Vincent Campo leaves Wildwood Municipal Court on Tuesday. Jan. 29, 2019 (Craig Matthews / Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Phil Murphy in AC

Current Governor-elect Phil Murphy, left, and Atlantic City Mayor-elect Frank Gilliam Jr., meet in 2016 at Kelsey’s in Atlantic City. Murphy and Gilliam both say they want to move the city forward as partners. With Murphy and Gilliam both Democrats, there could be more cooperation between the state and the city, said analyst John Froonjian, of the Hughes Center for Public Policy at Stockton University.
MLK Day in Atlantic City

AC Councilman Frank Gilliam after a ceremony at the Civil Rights Garden. Monday, January 16 2017 (The Press of Atlantic City / Ben Fogletto)
McDonald's Gives Back

Councilman Frank Gilliam, states, "I'm going to take my politics hat off and put my covenant hat on" at an event celebrating McDonald's restaurants across Southern New Jersey donating 100 percent of all McCafe drip coffee proceeds to Covenant House on National Coffee Day, totaling $8,980.26. Tuesday, January 24, 2017. (Viviana Pernot / Staff Photographer)
Frank Gilliam for Mayor

GILLIAM Atlantic City Councilman Frank Gilliam vows there will be ‘prosperity,’ ‘equality’ and ‘fairness from the bottom to the top’ as he officially announces his candidacy for mayor Monday at Gourmet Restaurant & Sweets on Atlantic Avenue.
Frank Gilliam running for Mayor in Atlantic City

City Councilman Frank Gilliam officially announces his run for mayor and at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
Frank Gilliam for Mayor

City Councilman Frank Gilliam officially announces his run for mayor at a rally at Gourmet Restaurant in Atlantic City Monday Feb 20, 2017. (The Press of Atlantic City / Edward Lea Staff Photographer)
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