Atlantic City mayor resigns after pleading guilty to defrauding basketball charity

CAMDEN, N.J. - Atlantic City’s mayor has resigned after he pleaded guilty to wire fraud, admitting he defrauded a basketball club out of $87,000. 

Frank Gilliam Jr. appeared Thursday in federal court in Camden, where it emerged that half that amount of money was recovered from his home when FBI agents raided it last December. 

FOX 29's Jeff Cole reports Gilliam was accused of taking donations from a basketball charity from 2013-2018 and using the funds for his own expenses.

Court documents state that Gilliam, the co-founder of the AC Starz youth basketball club, used the charitable donations to buy expensive clothing, meals and trips. Donors believed the money would be used to buy school supplies and support a basketball program for disadvantaged kids.

Judge Joseph Rodriguez informed Gilliam his guilty plea could result in his no longer being able to hold public office.

Agents carried off numerous cardboard boxes and computer equipment during a raid of the mayor’s home on Dec. 3, but they remained silent about why they were there and what they had taken away.

Gilliam could face 20 years in prison. 

City Council President Marty Small will be sworn into office Friday.

The Associated Press contributed to this report.