LAKEWOOD, NJ—Someone stole $15 million from financial accounts owned by the Lakewood Township School Board, but a week after the heist, nobody is talking about it. Neither the district nor the Ocean County Prosecutor’s Office have released any details on who could have done this, how, or why.
The Lakewood School District is reeling from the theft of $15 million from its operating accounts, an incident that has deepened an already dire financial crisis and sparked outrage among residents.
The theft, reported to have occurred over the Presidents’ Day weekend, comes just days after the state approved a $65 million emergency loan to prevent a shutdown. As authorities scramble to recover the stolen funds, district officials are grappling with mounting debt, public criticism, and a contentious response to community concerns at their most recent meeting.
Lakewood Mayor Raymond G. Coles confirmed the theft, noting that approximately $8 million has been recovered so far, with efforts ongoing to retrieve the remaining $7 million. Sources indicate that some of the stolen funds were traced out of state, while others were tracked internationally, prompting a multi-agency investigation involving federal, state, county, and local law enforcement.
The mayor underscored the district’s precarious financial state, stating, “The school district is in dire financial straits. They can’t afford to lose anything.”
The district, which serves roughly 4,460 public school students alongside nearly 50,000 nonpublic students, has long struggled with a unique financial burden. State-mandated costs, including transportation and special education for private school students—predominantly from the township’s large Orthodox Jewish community—have consistently outpaced the district’s revenue. The $15 million theft has only exacerbated this strain, hitting a district already “on its knees financially,” as Coles put it.
Earlier this month, the New Jersey Department of Education agreed to provide Lakewood Schools with a $65 million loan, averting an imminent shutdown scheduled for February 22 due to a $19 million deficit. The loan, to be disbursed in two installments of $32.5 million in February and May, was hailed as a temporary reprieve by district officials.
“The district will be made whole,” said Board Member Moshe Raitzik, emphasizing the state’s commitment to covering expenses without staff reductions.
He did not say who took the money.
However, this latest infusion of funds adds to a staggering debt load. Since 2014, Lakewood has borrowed approximately $280 million from the state to cover annual budget shortfalls, repaying just $81 million to date. With the $65 million loan, the district’s total outstanding debt will climb to nearly $200 million by the end of the 2024-25 school year—the highest of any school district in New Jersey. Critics argue this reliance on loans is unsustainable, with state-appointed fiscal monitor Robert Finger previously noting that Lakewood’s annual loan repayments already exceed the entire budgets of some neighboring districts.
Superintendent Laura A. Winters warned that even the $65 million will not suffice beyond May 31, estimating that an additional $40 million will be needed to complete the school year’s required 180 operational days.
The district had initially requested a $104 million loan as part of its $309 million 2024-25 budget, approved in March 2024, but the state has yet to fully respond to that plea.
The financial turmoil came to a head at the Lakewood Board of Education’s most recent meeting on January 22, where district officials faced a barrage of public criticism over their handling of the crisis. Residents and educators, frustrated by years of borrowing and the latest theft, demanded transparency and accountability.
The Lakewood Education Association, representing teachers, expressed alarm over job security, with President Kimberlee Shaw stating, “This deficit poses a significant threat to the timely and full compensation of our members, jeopardizing their livelihoods.”
Rather than assuaging concerns, Board Attorney and spokesman Michael Inzelbuch took a defensive stance, rebuking the public for what he called misplaced blame.
“We definitely need the money by Feb. 22,” he told the board, adding a quip about needing a lottery win to solve the crisis—a remark that drew sharp rebukes from attendees who saw it as dismissive.
Inzelbuch deflected responsibility onto the state, arguing that the funding formula fails to account for Lakewood’s nonpublic school obligations, a point echoed in the decade-long Alcantara lawsuit demanding a revised aid structure.
State monitor Louise Davis, appointed to oversee district finances, offered little clarity at the meeting, confirming only that she had no update on additional aid. Her silence further fueled public frustration, with some accusing the district of mismanagement despite oversight. The tense exchange underscored a growing divide between the district and the community it serves, as residents questioned how such a substantial theft could occur under state supervision.
The $15 million theft has intensified scrutiny on Lakewood Schools’ financial practices, with some calling for a forensic audit to uncover vulnerabilities.
The district’s ongoing reliance on state loans—nine since 2014—has drawn criticism from neighboring districts like Jackson, which plans to sue the state over perceived funding disparities after being denied similar aid. Meanwhile, the Alcantara case, which challenges the adequacy of state funding, remains unresolved, with a court-ordered deadline for a state response passing in April 2024 without a definitive solution.
