A New Jersey township is reeling after $26 million earmarked for affordable housing was stolen through a fraudulent wire transfer. But many residents are even more outraged that Democratic officials did not reveal the loss until three days after Election Day.
Cranbury Township Mayor Lisa Knierim disclosed the theft in a Nov. 6 Facebook post, describing it as a “sophisticated financial incident.”
“One of the most important responsibilities of our Township Committee is to communicate openly and honestly with the community we serve, particularly when faced with difficult circumstances,” Knierim wrote.
According to the mayor’s announcement, the money was intended to buy property needed to satisfy the township’s affordable-housing obligations. It vanished Sept. 28 in what officials described as a fraudulent wire transfer.
However, the revelation came three days after the Nov. 3 election, in which Democrat Thomas Szczur Jr., Knierim’s preferred candidate, defeated Republican Carol Haring, 63% to 37%. The result preserved the Democrats’ 5-0 control of the Township Committee.
Knierim’s statement did not explain why residents were not informed for more than five weeks after the theft occurred.
The timing quickly sparked anger across the community, with residents calling for a public hearing and demanding answers about the security lapse.
“As a resident … I am very interested in understanding what the security breach was and how the shortfall will be made up,” one commenter wrote.
“I’m interested in knowing why this information was kept under wraps until after Election Day,” another resident said.
“This shows an incredible lack of internal controls,” a third commenter argued.
Some residents responded with dark humor as frustration over the township’s handling of the incident grew.
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“Who has the authority in that town to buy $26 million worth of Apple gift cards?” one resident joked.
Knierim emphasized that a task force involving local, county, state and federal investigators was working “around the clock” to recover the money. The effort is being led by Cranbury police and the Middlesex County Prosecutor’s Office.
Investigators have so far frozen $17.3 million, but roughly $8.7 million remains unaccounted for.
“We recognize that news of this magnitude will understandably raise questions and concerns among our residents,” Knierim said in a statement issued on behalf of the Cranbury Township Committee, according to NJ.com.
“Those concerns are legitimate, and we take them seriously.”
Following the theft, the Township Committee approved two new positions — assistant township administrator and assistant chief financial officer — and brought in a municipal accounting firm for consulting work. Officials also said they are coordinating with insurance companies to determine whether additional funds can be recovered.
Those steps did little to calm residents who remained skeptical of the township’s response.
“Freezing the assets doesn’t mean you’ll get them back,” one commenter warned.
“Bigger government, it’s always the answer for politicians,” another resident scoffed.
One particularly frustrated commenter offered a blunt summary of the taxpayers’ reaction:
“You really screwed the pooch on this one.”
