A New Jersey town lost about $26 million meant for affordable housing to thieves, and its mayor did not tell residents until three days after the election.
Story Highlights
- Cranbury Township lost about $26 million through a fraudulent wire transfer on Monday, September 28.
- Mayor Lisa Knierim told residents on Friday, November 6, three days after the Tuesday, November 3 election.
- Democrats kept all five seats on the Township Committee in that election.
- Investigators have frozen nearly $17.3 million, which leaves about $8.7 million still out of reach.
- The mayor’s letter did not say why the town waited more than five weeks to go public.
Town Kept Quiet While Voters Went to the Polls
On Friday, November 6, Cranbury Mayor Lisa Knierim sent residents a letter saying the township had lost about $26 million in what she called a “sophisticated financial theft.” The money was taken on Monday, September 28, through a fraudulent wire transfer, which is an electronic bank payment sent to the wrong account by a scammer. The money was meant to buy land so the town could meet its affordable-housing duty. New Jersey law requires towns to provide their share of homes that lower-income families can afford.
Officials have not said how the thieves pulled it off, or whether any town worker was involved. No arrests have been reported.
While residents were left unaware, Cranbury held its local election on Tuesday, November 3. Democrat Thomas Szczur Jr., a candidate backed by Knierim, beat Republican Carol Haring with nearly 64% of the vote. That win kept Democrats in full control of the Township Committee, 5-0. Voters cast their ballots without knowing their town had lost tens of millions of dollars.
No Explanation for the Delay
Knierim’s letter gave the date of the theft and described a task force working to get the money back. It did not say why residents were not told sooner, or whether the Township Committee ever talked about telling them before the election, according to reports.
The township’s statement said, “this criminal investigation remains active, and additional details cannot be shared at this time.” That line speaks to what officials will share going forward. It does not explain why the basic fact of the theft stayed hidden for more than five weeks.
Knierim also said Police Chief Giuseppe DeChiara kept the Township Committee informed throughout the investigation. That means the town’s elected leaders knew about the loss while voters did not.
The mayor wrote that she understood news this big would worry residents. She called their concerns legitimate and said the township takes them seriously. Residents responded online, asking why the news was kept under wraps until after Election Day. The mayor’s office had not responded to a request for comment, according to reports.
Millions Still Missing
A task force led by the Cranbury Police Department and the Middlesex County Prosecutor’s Office, with help from state and federal agencies, is trying to recover the money. Investigators have frozen nearly $17.3 million, according to the township. That still leaves about $8.7 million that has not been frozen or recovered.
The township said its “commitment is to protect the financial interests of Cranbury Township, support the ongoing investigation, maintain essential municipal services, and keep our community informed as verified information becomes available.” That is a fair goal. But the theft itself was a verified fact on September 28.
What the Town Plans Next
At its meeting on Monday, November 9, the Township Committee plans to introduce rules creating two new jobs: an assistant township administrator and an assistant chief financial officer. Officials say the goal is tighter control over the town’s money. The township also plans to consider hiring an outside accounting firm for financial advice, and it is working with its insurance companies to see what losses can be covered.
An active criminal case can be a real reason to hold back details that might tip off suspects or hurt the effort to get money back. But there is a difference between guarding an investigation and not telling taxpayers that $26 million of their money was gone, right through an election.
Nothing in the public record shows that Knierim timed the announcement to protect her party. The dates are on the record: theft on September 28, election on November 3, disclosure on November 6. Cranbury residents are asking why their town leaders decided they did not need to know until after the votes were counted.
Sources:
newjerseyglobe.com, foxnews.com, mycentraljersey.com, nj.com
