Accra, Oct. 4, (UPI/GNA) - The mayor of Atlantic City, N.J., was forced to resign Thursday after pleading guilty to wire fraud in a Camden federal court for taking almost $90,000 from a youth basketball program he helped co-founded.
Frank Gilliam was in his first term as Atlantic City's mayor, having ousted incumbent Don Guardian in 2017. He now faces up to 20 years in prison for appropriating $87,000 from the youth program. He will be sentenced Jan. 7.
"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," U.S. Attorney Craig Carpenito said in a statement. "Instead, he spent the money on himself.
"When a public official like Gilliam abuses either a public or a private trust to commit a fraud, this office and our agency partners will investigate and prosecute that official. The people of New Jersey are entitled to better."
Carpenito said Gilliam's fraud was associated with the youth basketball program, and not as Atlantic City mayor.
Marty Small, the Atlantic City council president who lost to Gilliam in a bitter Democratic primary two years ago, was set to succeed Gilliam as mayor Friday. He said he doesn't want the scandal to blemish Atlantic City's political reputation.
"Make no mistake about it, things happen in all cities," Small told UPI late Thursday. "People will always want to put a bulls-eye on Atlantic City. It's a distraction, but it's important not to be distracted.
"We're going to continue to push forward for the betterment of the city. That's my stance."
Small declined to speak of Gilliam's charges but said he wants to keep a working relationship with the state, which has controlled Atlantic City's finances since 2016.
"I don't take any pleasure in what happened," he said. "God bless [Gilliam] and his family. I'm just looking forward to [taking office] and looking forward to answering the clarion call."
Prosecutors said when he was mayor, and while previously a member of the Atlantic City Council, Gilliam solicited donations for the basketball program from various individuals and entities, but spent them on things like luxury clothing, expensive meals and travel.
"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," FBI Special Agent in Charge Gregory W. Ehrie said. "[Gilliam] betrayed the trust of his community and of people who wanted to improve the lives of children."
GNA
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