Ex-Atlantic City Mayor Frank Gilliam sentenced to 30 days in federal prison for stealing $86K from youth basketball club

ATLANTIC CITY — It was a far cry from the blustery, combative, and confident Atlantic City mayor, councilman, and politician that once defined Frank M. Gilliam Jr., as he sat in his living room Thursday afternoon and tearfully pleaded via Zoom for mercy from a federal judge for a crime of stealing $86,000 from a youth basketball club.

“I stand before this court as a fractured human being,” Gilliam told U.S. District Judge Joseph H. Rodriguez, speaking through tears, dressed in a gray suit and blue tie. “The mistake that I made is not something that I am proud of. It is something that I’m very ashamed of. ... I want to apologize to this court for being in front of you when I knew better.”

And in the end, after a lengthy hearing, the judge sentenced Gilliam, 50, to just 30 days in prison, significantly less than the term of 15 to 21 months prosecutors sought to punish him for defrauding AC Starz, the nonprofit youth basketball team he founded, then used to bankroll a lavish lifestyle of designer suits and pricey dinners.

“He took money from the children who deserved it most,” Rodriguez said. “The money was spent selfishly on himself.”

Addressing the numerous testimonials about Gilliam’s work as a mentor, coach, family member, and community volunteer, and his life trajectory from a tragic beginning (his father murdered his mother) to a life of public service, Rodriguez said: “It is unfortunate that when an idol falls, the ripple effects are extensive, and disappointing for many.”

He added: “This does not mean that because he has committed so many good deeds along the way that he gets a pass on his criminal conduct.”

The judge also sentenced Gilliam to 11 months of home confinement, three years’ probation, and 200 hours of community service. He also ordered him to pay full restitution. The judge said he took into account Gilliam’s remorse, cooperation, stable employment history, community service, and low risk of repeating his offense.

Emotional throughout much of the hearing, Gilliam showed no emotion upon hearing the sentence. With the exception of Ocean City Councilman Mike DeVlieger, whose son Gilliam coached and who praised Gilliam’s contributions to the community, no elected officials spoke on his behalf.

While Gilliam’s attorney, and numerous friends and relatives, had requested no jail time, three years’ supervised release and community service, the judge’s sentence was a substantial variance from what the government requested.

“He was supposed to be serving his community,” noted Assistant U.S. Attorney Sean Farrell, who objected to the sentence as too lenient and not a proper deterrent. “Instead he defrauded the community. And he did it on the backs of kids.”

Farrell had indicated during the hearing that the government would allow Gilliam to get the coronavirus vaccine before reporting to prison.

Gilliam pleaded guilty Oct. 3, 2019, to a charge of wire fraud and resigned later the same day as mayor of Atlantic City, even as the state attorney general was filing papers to oust him from office.

Gilliam’s arrest, guilty plea, resignation, and now brief jail sentence continue a long streak of corruption by those inside Atlantic City’s City Hall, a few blocks from the seaside resort’s famous Boardwalk. He was the fifth Atlantic City mayor to be arrested since the 1970s, though his attorney stressed that these charges did not involve his public duties, or public money.

“Mr. Gilliam will continue to use his time to make restitution payments, perform his court-mandated community service, and try to regain the trust and faith of those who have supported him and his family,” his attorney, Harry Rimm, who noted that he had played backcourt with Gilliam as a freshman on Atlantic City High School’s basketball team, said in a statement after the sentencing. He said Gilliam would have no comment.

Gilliam’s attorney argued that the “collateral consequences” suffered by Gilliam, including “public humiliation and shame,” have haunted him and support a more lenient sentence.

His supporters cited the dependence on him of his three minor children, a 4-year-old grandson that he has custody of, and a brother, Daniel, who spoke during the sentencing about his reliance on his brother following heart problems.

And they noted that he has gone about two-thirds of the way toward full restitution, allowing the $41,000 seized from his home during an FBI raid to go toward restitution, and paying an additional $12,455, some of it from “change and bills” put toward $25 money orders sent to the government, his attorney told the judge.

Shawna Gilliam, Gilliam’s wife, told the judge she believes her husband continues to feel the trauma from the early tragedy, and said, “Frank is who our whole family depends on.”

“We prevail,” she said, addressing her husband. “Frank, you are victorious. Nothing you do defines who you are, and I will always be your friend.”

In a five-page sentencing memorandum, prosecutors argued that Gilliam’s “history and characteristics,” while marked by tragedy, did not merit a downward departure from the sentencing guidelines.

“Gilliam experienced tragedy early in his life and turned to basketball both as an outlet and to avoid the pitfalls of living in a tough neighborhood plagued by drug use,” Farrell wrote, a reference to Gilliam’s father having murdered his mother inside the family’s home when Gilliam was 3.

“But instead of using AC Starz to teach the game he loves and make a difference in the lives of young people through basketball, he used the team as a personal piggy bank in order to furnish a lifestyle that he otherwise could not afford,” Farrell wrote.

Anthony Bethel, a former Stockton administrator who recruited Gilliam, said, “Speaking as a citizen and resident of Atlantic City, I am not seeking retribution for his actions.”

“Mr. Gilliam repeatedly has admitted that he made a terrible, life-altering mistake that will weigh on him for the rest of his life,” the lawyers stated in a memo to the judge. “Mr. Gilliam would like the Court to know that he has helped others all of his life as a volunteer coach, behavioral therapist and community advocate.”

The defense lawyers stressed that AC Starz was an outgrowth of Gilliam’s passion for basketball, which, Gilliam himself wrote to the court, “became my outlet that silenced all the noise. The court was my sanctuary and I worshiped its every rule.”

In a letter dated Dec. 11, 2020, Gilliam reflected his continuing remorse, and described hitting “some emotional lows.” He asked the judge to sentence him to probation and 500 hours of community service.

“Over the past year, I have had time to think about who I am and what will become of me and my life moving forward,” he wrote. “The feeling of being extremely saddened and sorry about my actions has continuously haunted my thoughts on a daily basis.

“As hard as I try to walk with my head held high, the burden of my choices remains ever present,” he wrote.

In a separate incident in 2018, he was involved in a fight outside the Golden Nugget casino and charged in municipal court with assault and harassment, charges that were later dropped.