Property taxes could rise after $3M school scam in Middlesex County

🔴 $3.3M stolen from Spotswood Public Schools in a spoofing scam.

🔴 The district serves 1,650 students and faces potential disruptions.

🔴 A worst-case plan could raise the average home’s property tax.

SPOTSWOOD — Millions in New Jersey school funds remain missing after a successful scam.

The Middlesex County Prosecutor's Office is investigating to find whoever managed to fleece $3.3 million from Spotswood Public Schools, said borough Mayor Rich O'Brien. He said that investigators do not believe anyone from the borough or school district was involved in the theft.

Around 1,650 students attend the district's four schools, according to the National Center for Education Statistics. The district had a revised budget of over $36.5 million in the 2024-25 school year, making a loss of over $3 million fairly significant.

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The massive theft happened in September 2025, and most of the money hasn't been recovered, O'Brien said. Weeks later, the scammers stole another sum of $1,474,820.70. That second amount has made it back to the district.

Around $3.1 million is still unaccounted for, and the district needs to make up the lost money, the Spotswood mayor said. O'Brien said they have until the end of the first fiscal quarter, which is March 31.

"I share your fear and frustration over this situation and ask for your patience as we work through it," O'Brien said.

The money was stolen through a spoofing scam, O'Brien said. Borough officials mistakenly transferred the funds to a third party impersonating the school board.

School board officials told Spotswood that school operations will be "severely affected" if the district doesn't get the money it's owed, according to O'Brien. But the district doesn't have $3 million just lying around.

Borough officials have filed an insurance claim and have been in contact with local lawmakers to recoup the funds. However, the mayor said the change in the governor's mansion caused a delay.

O'Brien said that the borough is planning for a worst-case scenario, though they don't expect to face those hardships. Spotswood will look to spread any loss over municipal budgets for the next 15 years, which would increase the average home's property tax by $101. That increase will not be necessary if the money is recovered, either from the scammer or the state.

TAX PAIN: New Jersey property taxes hit record highs, hammering homeowners

In 2025, the average property tax bill in Spotswood was $9,827. That's a 4% increase from the year before. See your town's average property tax bill below.

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