Township finances
$26 million stolen in wire fraud; township discloses theft five weeks later
Investigators have frozen about $17.3 million. The Township Committee will move Monday to add two senior finance and administration posts and hire an outside accounting firm.
CRANBURY — About $26 million that Cranbury Township had set aside to buy land for its affordable housing obligations was stolen through a fraudulent wire transfer on Sept. 28, township officials disclosed Friday.
The theft was announced Nov. 6 in an official statement and a letter to residents signed by Mayor Lisa Knierim on behalf of the Township Committee. Both said a task force of local, county, state and federal agencies, led by the Cranbury Police Department and the Middlesex County Prosecutor’s Office, has frozen assets totaling nearly $17.3 million. The investigation remains active, and officials said further details cannot be shared.
The township has not said how the transfer was diverted. Police Chief Giuseppe DeChiara has briefed the committee throughout the investigation, and township employees have cooperated fully, according to the statement.
“The theft of public funds is an extremely serious matter, and the Township Committee recognizes its responsibility to protect the financial interests of Cranbury residents.”
What happens Monday
At its regular meeting Monday, Nov. 9, the committee is scheduled to introduce ordinances creating the positions of Assistant Township Administrator and Assistant Chief Financial Officer. Both would come up for adoption Nov. 23, and the township said it intends to fill them promptly after that. The agenda also includes a resolution awarding a professional services agreement for financial consulting to PKF O’Connor Davies LLP. Township representatives are reviewing insurance coverage for possible recovery.
Questions about timing
The disclosure came three days after the Nov. 3 general election. The New Jersey Globe reported Saturday that the mayor’s letter does not explain why residents were not told before the vote. The township’s statement cites the active criminal investigation as the reason details are limited. It does not address the timing of the announcement.
Coverage widens
By Saturday the theft had drawn regional coverage, including reports from ABC7 New York and News 12 New Jersey. As of Saturday evening the township had posted no further statements on its news page.
What the public record shows
Since Sept. 28, the committee met in closed session at a 1 p.m. special meeting Oct. 6, called under the exemption for pending litigation and attorney-client privilege. Its Oct. 13 and Oct. 26 agendas also scheduled closed sessions, both listed as personnel matters and possible litigation. Monday’s agenda lists another closed session on the same grounds. Under state law, closed-session minutes are released only once confidentiality is no longer needed. The approved minutes of the Sept. 28 public meeting, held the evening of the theft, do not mention it.
Sources: Official statement, Nov. 6 · Letter to residents, Nov. 6 · Nov. 9 agenda · Oct. 6 minutes · New Jersey Globe, Nov. 7 · ABC7 New York · News 12 New Jersey, Nov. 7