Atlantic City Mayor Pleads Guilty To Federal Wire Fraud

CAMDEN, NJ — A nonprofit meant to serve a youth basketball team actually served the Atlantic City mayor's lavish purchases, according to the feds.Atlantic City Mayor Frank Gilliam pleaded guilty Thursday to one count of federal wire charges, the feds announced.

Gilliam, 49, defrauded the AC Starz Basketball Club, a youth basketball program, of $87,215, according to U.S. Attorney Craig Carpenito. He is scheduled for sentencing Jan. 7 and faces up to 20 years in prison. The plea comes a year after a mysterious FBI raid on his home.

The mayor admitted to defrauding more than 10 people. Gilliam told U.S. District Judge Joseph H. Rodriguez that he created the basketball club and opened a bank account for it in March 2011. From 2013 to 2018, he admitted to using club donations for personal expenses.

"Mayor Gilliam took advantage of his victims’ desire to assist underprivileged children by falsely representing that the money contributed to the AC Starz Basketball Club would go to pay for school supplies or to support youth basketball,” Carpentino said.

Gilliam used the money for personal expenses such as luxury clothing, expensive meals and trips, the feds said.

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