The theft, which occurred in September, involved the fraudulent wire transfer of municipal funds earmarked for purchasing property for Cranbury Township’s affordable housing program. Mayor Lisa Knierim disclosed the heist in a message posted on the township website, describing it as a “sophisticated financial theft.”

Law enforcement officials are working with the FBI to investigate, and authorities have successfully frozen assets totaling nearly $17.3 million, Knierim said. But roughly $9 million remains unaccounted for, according to Police Chief Giuseppe DeChiara.

The mayor attributed the breach to “a lack of oversight and a severe clerical error” that enabled the fraudulent transfer. At a packed public meeting at the local library on Monday night, Knierim told residents her heart was “broken” and acknowledged their frustration. “Your anger is valid,” she said.

Residents only learned of the theft last week, weeks after it occurred, prompting outrage over the delay. DeChiara defended the decision to withhold information, saying that immediate disclosure could have compromised the investigation and the effort to recover funds. He said he had issued a confidentiality directive to all township employees.

Cranbury, home to approximately 4,000 residents, maintains a $5 million insurance policy, but it remains unclear how much of the missing money the township could recoup. In a written statement, the mayor said the township is “actively working with our insurance carriers to evaluate potential recovery options.”

The case highlights growing concerns about cybersecurity vulnerabilities in local governments, particularly those handling large financial transactions. For a small municipality, the loss represents a significant blow to affordable housing efforts at a time when housing costs are soaring across New Jersey.

As the FBI investigation continues, residents are demanding answers about how such a massive transfer could occur without safeguards—and why they were kept in the dark for weeks.