Miguel Martinez, the city councilman who resigned earlier this week because of a federal investigation, pleaded guilty yesterday to mail fraud and money laundering. He admitted to pocketing $106,000 in earmarked funds from the city budget, which had been meant to go to community organizations. He and an accomplice filed fake invoices and he was funneled $40,000 in additional funds from a developer whom he hooked up with a nonprofit group for tax benefits. [Bloomberg]