Cranbury, New Jersey, was robbed of $26 million earmarked for affordable housing, officials say
The township of Cranbury, New Jersey, was the victim of a multimillion-dollar theft in late September, according to local officials.
In a message to the community, the Cranbury Township Committee said it was "the victim of a sophisticated financial theft involving approximately $26 million wire transfer. These funds were designated for the purchase of property intended to support the township's affordable housing obligations."
Cranbury Mayor Lisa Knierim told residents gathered at a packed town meeting at the public library on Monday night, "My heart is simply broken for Cranbury," adding, "Your anger is valid. Your fear is valid. Your confusion, frustration, and disappointment are valid. You deserve the opportunity to express those emotions and ask difficult questions and be heard."
Township officials said it was a lack of oversight and a severe clerical error that led them to be tricked into wiring money to fraudsters. The current chief financial officer and administrator has since retired, and Chief of Police Giuseppe DeChiara said $17 million was successfully recovered and will be returned to the town of Cranbury, leaving an additional $9 million still unaccounted for.
"After I was notified specifically of what they believe was potential fraud, no less than six minutes my team was at town hall. My first phone call was to the FBI and then we went to work," DeChiara said.
Many residents were also upset over the fact that the fraud happened on Sept. 28 and they weren't notified until after the Nov. 3 election.
"I want you to tell me after this meeting why I should continue to believe in you," one resident asked.
"When we got the notice, the letter from the mayor, I was thinking it was recent, like that day or the day before... not a whole month. That was very surprising," resident Jodi Pagano said earlier in the day.
The police chief said the delay in informing the public was in order to preserve the ongoing investigation.
The situation has left many in the community with more questions than answers.
"It's not like you put your hand in your pocket and money falls out, right? It's $26 million," former Mayor Jay Taylor said. "Honestly, I don't know how something like this happens, because there are processes and checks in place."
Ordinances were expected to be introduced at the meeting establishing positions of assistant township administrator and assistant chief financial officer to provide more financial and administrative oversight.
According to the police chief, the $17 million that was seized is expected to be returned to the town of Cranbury within 120 days.
