Lower Township officials made the announcement Friday. The Cape May County Prosecutor's Office is conducting the ongoing investigation, and it's not clear when it may be completed.
Township Manager Kathy McPherson told The Press of Atlantic City that township officials "will take appropriate disciplinary action" if needed, once the probe is complete.
County Prosecutor Robert Taylor declined comment.
But township Police Chief Ed Donohue said Saturday that he's been told "no evidence of any criminal culpability" has been found.
Donohue first raised the matter in April, when it was thought to be a minor issue related to "sloppy record keeping."
Officials say as many as 30 cases will be dismissed.