Atlantic City's already embattled mayor took another hit Monday as federal investigators searched his home.
The FBI and IRS spent about five hours there, armed with a search warrant, according to Special Agent Jessica Weisman, who is in charge of the Northfield office.
She said she could not release any further information.
About a half-hour after FBI agents left, Gilliam emerged from his home and drove away in his private SUV, a woman in the passenger seat. He did not comment to media.
The state is monitoring the situation, Department of Community Affairs spokeswoman Lisa Ryan told BreakingAC.
"We cannot comment on an ongoing investigation," she said. "We remain focused on the people of Atlantic City and ensuring that their needs are met. The state, city officials, and government, civic, private and philanthropic stakeholders throughout the city are staying on task to keep Atlantic City moving forward."
Gilliam's chief of staff said that the office was open and continued to work for the residents.
A computer, printer and several boxes were taken out of Frank Gilliam's two-story home on North
Ohio Avenue in the city's Venice Park section.
Mayor Gilliam leaves his he driving his private vehicle https://t.co/YTH1vwOiUr pic.twitter.com/SRWeD4zDUT
— Lynda Cohen (@LyndaCohen) December 3, 2018
A group formed a prayer circle nearby. They later went into the home.
Council President Marty Small said he was surprised by the news. He had no official comment.
This comes just days after the Cape May County prosecutor elected not to file criminal charges against Gilliam and Councilman Jeffree Fauntleroy in a fight outside the Haven Nightclub at the Golden Nugget.
Both men face municipal charges in that case, after three employee signed complaints alleging simple assault and harassment.
Video of the fight was released to the media last week.
The Atlantic City Democratic Committee called for Gilliam and Fauntleroy to step down last week.
Committee President Gwen Callaway Lewis renewed that call Monday.
"Just goes to show what we said about his character and his behavior," she said. "It just goes to show you that he needs to step down until this mess is over if it's over."
There have been whispers about a federal investigation since just after Gilliam announced he was cleared of any wrongdoing concerning a $10,000 check meant for the city's Democratic Party, but that wound up in Gilliam's mayoral campaign fund.
"I've been hearing for some time he was under federal investigation but nobody knows," Lewis said. "It's a black eye again. Same mayor."