Frank Gilliam resigned as mayor of Atlantic City hours after pleading guilty to wire fraud in Camden federal court.
Paperwork already had been filed by the attorney general to oust Gilliam from the position.
Council President Marty Small is scheduled to be sworn in as interim mayor at noon Friday.
Gilliam admitted that he fraudulently used $87,215 in contributions for a youth basketball camp.
In his plea, Gilliam admitted he set up the AC Starz basketball camp as a nonprofit, and then solicited donations from 2013 to 2018, including a "substantial" one from a donor in Philadelphia
But instead of using the money for the camp, it went to personal expenses, including luxury clothing, expensive meals and trips
Gilliam, 47, could face as many as 20 years in prison for the wire fraud charge.
“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. “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.”
Gov. Phil Murphy called for Gilliam to resign his office, saying the charge to which he pleaded guilty was "in a word, despicable."
In exchange for his plea, the government has agreed not to pursue any other charges.
Gilliam has agreed to repay the money, including $41,335 seized during an FBI search of his home in December.
He is free on $100,000 bond, and set to be sentenced Jan. 7.
Gilliam was silent as he and his attorney, Harry Rimm, left the courthouse.
In a written release, Rimm stressed that the crime was not done in his official capacity as mayor.
"He is not charged with taking any public or taxpayer funds," Rimm wrote.
Paperwork to remove him from office was filed Thursday afternoon in Mercer County Superior Court by the Office of Public Integrity and Accountability, state Attorney General Gurbir Grewal said.
"The residents of Atlantic City deserve immediate action to remove Mayor Gilliam, who demonstrated by his criminal conduct that he is not fit for office," Grewal said. "We have filed papers in state court seeking his swift removal. I commend the U.S. Attorney’s Office and FBI for securing this guilty plea. Together we must foster a culture of integrity in New Jersey government to safeguard the public interest.”
But that was not necessary after Gilliam tendered his resignation.
Small will serve as interim mayor. Then the Atlantic City Democratic Committee would offer three candidates for City Council to vote on.
