Atlantic City, NJ – The former mayor of Atlantic City was sentenced today to 30 days in prison for defrauding contributors to a youth basketball team out of more than $86,000, Acting U.S. Attorney Rachael Honig announced.
Frank Gilliam, 49, of Atlantic City, New Jersey, previously pleaded guilty to an information charging him with wire fraud. U.S. District Judge Joseph H. Rodriguez imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
Gilliam was the co-founder of AC Starz Basketball Club (AC Starz), a non-profit that he incorporated to operate a youth basketball team. While serving as a member of the Atlantic City Council and later, as mayor of Atlantic City, Gilliam solicited donations for AC Starz from various individuals and entities under the false pretense that the contributions were for a youth basketball team and/or school supplies for underprivileged children. Gilliam instead used most of the money for personal expenses – including luxury clothing, expensive meals, and trips – that were completely unrelated to the operation of a youth basketball team. In total, Gilliam defrauded the contributors out of $86,790.
In addition to the prison term, Judge Rodriguez sentenced Gilliam to three years of supervised release, ordered him to pay restitution to his victims in the amount of $86,790, and ordered him to perform 200 hours of community service.
Acting U.S. Attorney Rachael Honig credited special agents of the FBI Atlantic City Resident Agency and FBI Atlantic City Public Corruption Task Force, which includes the Atlantic County and Cape May County Prosecutor’s Offices and the Atlantic City Police Department, under the direction of FBI Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.