Cranbury Township, New Jersey, lost a staggering $26 million in a fraudulent wire transfer. But residents are furious that Democratic officials waited until three days after Election Day to reveal the massive theft.
Mayor Lisa Knierim disclosed the loss 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 said.
The money had been set aside to buy property that would help the township meet its affordable-housing obligations. According to the mayor’s announcement, it vanished in a fraudulent wire transfer on Sept. 28.
However, the stunning disclosure came three days after the Nov. 3 election, in which Democrat Thomas Szczur Jr., Knierim’s preferred candidate, defeated Republican Carol Haring by a 63% to 37% margin. The result preserved the Democrats’ 5-0 control of the Township Committee.
Knierim’s announcement did not explain why residents were kept unaware of the theft for more than five weeks.
The delay angered residents, some of whom called for a public hearing.
“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 wrote.
Others responded with dark humor about the township’s handling of the incident.
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“Who has the authority in that town to buy $26 million worth of Apple gift cards?” one resident joked.
The mayor emphasized that a task force of local, county, state and federal investigators was working “around the clock” to recover the money. The investigation is being led by Cranbury police and the Middlesex County Prosecutor’s Office.
Investigators have so far frozen $17.3 million, leaving $8.7 million still unaccounted for.
“We recognize that news of this magnitude will understandably raise questions and concerns among our residents,” Knierim wrote in a statement 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 created two positions — assistant township administrator and assistant chief financial officer — and hired a municipal accounting firm for consulting services. Officials are also working with insurance companies to determine whether additional funds can be recovered.
Those measures did little to calm angry residents.
“Freezing the assets doesn’t mean you’ll get them back,” one commenter warned.
“Bigger government, it’s always the answer for politicians,” another scoffed.
One exasperated resident summed up the taxpayers’ frustration.
“You really screwed the pooch on this one.”