A former councilman from Penns Grove, New Jersey, has admitted guilt in two separate corruption cases involving misuse of public funds and fraudulent reporting of income to obtain government benefits. The Office of Public Integrity and Accountability (OPIA) announced that Carl Washington Jr., 52, pleaded guilty on January 13, 2026, to theft by unlawful taking related to the state Clean Communities Program, and to theft by deception in a case involving subsidized housing.
In the Clean Communities case, Washington misappropriated approximately $8,200 while serving as the local coordinator for the program. Investigators found he altered paperwork to create fraudulent checks made out to organizations managed by his associates. These associates then cashed the checks and returned proceeds to Washington and his nephew, Lavar Ledbetter. Under a plea agreement, prosecutors will recommend probation, 100 hours of community service, restitution of $8,200, and a permanent ban from holding public office or employment in New Jersey.
Washington also admitted to underreporting his income when applying for a federally subsidized apartment at Penns Grove Gardens. He only reported his councilman salary as income, which allowed him to pay significantly reduced rent—$92 per month early in 2017 and $80 per month for the remainder of 2017 and all of 2018. However, authorities discovered he had additional income from two other jobs and other sources that he did not disclose. If all income had been properly reported, his rent would have been set at $1,400 per month during that period. The total amount defrauded was calculated at about $31,644.
Sentencing is scheduled for March 6, 2026 before New Jersey Superior Court Judge Russell A. DePersia in Salem County. For the housing fraud case, prosecutors have recommended Washington pay a $15,000 fine along with serving probation; the length will be determined by the court.
“This case is a clear example of how public corruption can drain taxpayer resources and divert public funding from its intended purposes of assisting those in need and improving our communities,” said Acting Attorney General Davenport. “As my office works in tandem with other state agencies to bring down the cost of living for New Jerseyans, identifying and disrupting schemes that defraud the government of publicly funded benefits will be an important element of our efforts.”
“This is a win for the public, which will now be compensated for the stolen funds, and a warning to anyone who would take advantage of our taxpayers. Here, government subsidies and housing assistance were intended for the truly needy and instead were diverted to their elected official. I want to thank the prosecution team for holding Washington accountable for criminally exploiting a program and public funds at the expense of his constituents most in need of help,” said Eric L. Gibson, Executive Director of OPIA.
The indictments against Washington date back several years: December 16, 2020 regarding theft from Clean Communities Program funds; December 14, 2021 concerning fraudulently obtained rent discounts.
The investigation into these matters was led by Deputy Attorneys General Richard T. Bobbe III and Brian O’Loughlin under OPIA’s Corruption Bureau leadership.
Ronald B. Thompson served as defense attorney for Carl Washington Jr.
