Former Penns Grove Councilman Pleads Guilty to Theft and Housing Fraud

Carl Washington Jr. admits to misusing state litter cleanup funds and falsifying income to obtain discounted rent, defrauding taxpayers of nearly $40,000.

A former councilman in Penns Grove, Salem County, has pleaded guilty in two separate public corruption cases—one involving the misappropriation of state Clean Communities funds and the other involving fraudulent reporting of income to secure federally subsidized housing benefits.

Carl Washington Jr., 52, of Penns Grove, entered his guilty pleas on January 13, 2026, in Salem County Superior Court, just as his trial for the income-related fraud case was set to begin. The announcement was made by Acting Attorney General Jennifer Davenport and the Office of Public Integrity and Accountability (OPIA) on January 22.

“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.”

Washington pleaded guilty to third-degree theft by unlawful taking in connection with the Clean Communities Program and to third-degree theft by deception in relation to the housing subsidy fraud. Under the terms of his plea agreements, prosecutors are recommending probation, community service, and financial restitution.

In the Clean Communities case, Washington admitted to diverting approximately $8,200 in program funds meant for litter clean-up efforts. As the program’s local coordinator, Washington manipulated program documentation to write fraudulent checks to organizations associated with his acquaintances. According to investigators, the checks were then cashed by these individuals, who returned the funds—at least in part—to Washington and his co-defendant and nephew, Lavar Ledbetter, 37, of Mullica Hill.

In the housing fraud case, investigators uncovered that Washington underreported his income to dramatically reduce his rent for a federally subsidized Section 8 apartment at Penns Grove Gardens. Washington only reported his earnings as a borough councilman, which allowed him to pay as little as $80 to $92 per month in rent between 2017 and 2018.

However, authorities later found that Washington had income from two additional jobs and other undisclosed sources. Based on his actual income, his rent should have been approximately $1,400 per month, resulting in a total loss to the program of about $31,644. His fraudulent conduct came to light after the apartment complex initiated eviction proceedings in 2019, alleging unlawful subletting and noting the arrest of a third party at the apartment for drug offenses.

Washington now faces a permanent ban from holding public office or employment in New Jersey, $8,200 in restitution for the Clean Communities fraud, and a $15,000 fine in the housing case. Prosecutors are also recommending 100 hours of community service and a probationary sentence, with final sentencing scheduled for March 6, 2026, at 1:30 p.m.

“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 cases were investigated and prosecuted by theOPIA Corruption Bureau, with Deputy Attorneys General Richard T. Bobbe III and Brian O’Loughlin securing the plea under the supervision of Deputy Chief Marian Galietta, Bureau Director Jeffrey Manis, and Executive Director Gibson. Washington was previously indicted on the Clean Communities matter in December 2020, and on the housing fraud charges in December 2021.