How did Cranbury lose $26 million? Residents want answers

💲 $26 million being stolen during a transaction was stolen with fraudulent information

💲The Middlesex County Prosecutor's Office has helped freeze $17 million

💲Residents questioned why the fraud was kept quiet until after Election Day

CRANBURY — Residents are demanding answers about how Cranbury Township lost $26 million in a fraudulent electronic transfer, with some calling for those responsible for financial oversight to be fired.

Mayor Lisa Knierim broke the news Friday about the Sept. 28 "sophisticated financial theft" involving money stolen electronically during a transaction to purchase property for Cranbury Township's affordable housing obligations. She acknowledged that the incident was why Monday night's meeting was moved to the public library to accommodate a larger crowd.

"I want to begin again by acknowledging just how serious and heartbreaking the situation is for our community. And over the past several days, I've read many comments, concerns, and questions raised by residents," Knierim said. "And I want you to know that we are listening to you and we understand the concerns and we intend to address them as openly and thoroughly as we can this evening."

There were some questions and concerns that could not be addressed because the investigation is ongoing and involves township employees, according to Knierim.

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Police chief explains how the $26 million theft happened

Police Chief Giuseppe N. DeChiara shed some light on the investigation and what led to the fraudulent transfer of funds. He also took responsibility for withholding the news until Friday.

"We were preparing for a closing on property. A wire was sent. Prior to that wire being sent we were given fraudulent wiring instructions. After I was notified specifically of what they believed was potential fraud in 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.

A gag order was issued to prevent township employees, council members and the mayor from discussing the case. Going public could have alerted those responsible and given them an opportunity to move the funds.

Instead, $17 million has been frozen thanks to the efforts of the Middlesex County Prosecutor's Office. Subpoenas were still being issued as of late Sunday night, the chief said.

DeChiara said the ultimate decision about when to go public was his. Committee members asked him a dozen times, but he said no each time. He denied allegations during public comment that politics played a role.

"I'm telling you right now it has nothing to do with an election. As a New Jersey police chief, whether I have four Democrats on the committee and one Republican, or five Democrats makes no difference. They did not tell me when to release it. I can assure you that I didn't even know who won the election until the next day I came in and I was told. So it had no bearing on what I released and when I released it," DeChiara said.

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Residents question Cranbury's financial oversight

Many who addressed the council expressed concern about how such a theft could occur and why checks and balances were not in place. They called for those responsible for oversight to be fired.

One resident pointed out that the township administrator, CFO and director of finance roles are all held by one person. Members did not address individual questions and comments.

Ordinances establishing the positions of Assistant Township Administrator and Assistant Chief Financial Officer received a first reading at Monday's meeting.

The meeting was moved to the public library to accommodate a larger crowd, with residents lining up in a hallway to speak to the council. The public comment portion of the meeting was also moved to the beginning of the meeting.

The proposed ordinances are available through the Cranbury Township meeting agenda.

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