Cranbury Says $26 Million Was Diverted in Theft

Cranbury Township said about $26 million intended to purchase property for its affordable-housing obligations was diverted in a financial theft on September 28. Investigators have frozen nearly $17.3 million in assets, but the township has not reported that any of the money has been returned.

Mayor Lisa Knierim announced the theft on November 6 on behalf of the Township Committee. The township said the criminal investigation remains active and that it could not release further details. Officials have not disclosed how the funds were diverted or how much of the frozen assets may ultimately be recovered.

A task force involving local, county, state and federal law enforcement agencies is investigating. Cranbury police and the Middlesex County Prosecutor’s Office are leading the effort, according to the township. Officials are also working with insurance carriers to evaluate possible recovery options.

The money was intended to fund a property purchase tied to Cranbury’s affordable-housing obligations. The township’s adopted Fourth Round Housing Element and Fair Share Plan lists a prospective obligation of 265 affordable homes in that round, separate from earlier-round obligations....