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Edited by: TJVNews.com
Federal authorities have launched an investigation into a controversial real estate transaction involving two New Jersey state senators who allegedly purchased public land and later sold it at a substantial profit. According to a recently published report on the Politico.com web site, the deal, which involved land in Vineland, South Jersey, has raised questions about potential conflicts of interest and the legality of the transaction. The investigation has intensified following the issuance of a federal grand jury subpoena seeking records related to the sale.
At the heart of the investigation is a plot of land located at 1615 W. Garden Road in Vineland, which was initially sold by the Vineland Industrial Commission to four limited liability companies (LLCs). According to publicly accessible property records, the land was subsequently flipped for seven times the original purchase price, as was reported by Politico.com. The dramatic increase in value has attracted the attention of federal investigators, who are now probing the circumstances surrounding the deal.
The investigation was set in motion when a federal grand jury subpoena was issued to the Vineland Industrial Commission, specifically requesting documents and communications related to the sale of the property. The subpoena, obtained by POLITICO, was addressed to commission member Dan Kuhar and commanded his appearance at the federal courthouse in Camden on July 17. Vineland’s law director, Rick Tonetta, confirmed the existence of the subpoena and stated that the city had complied by providing all requested documents. Tonetta expressed confidence that the transaction had been conducted legally.
As per the information provided in the Politico.com report, the real estate deal involves several high-profile figures in New Jersey politics, including state Senators Michael Testa and Doug Steinhardt, both of whom hold significant influence within the Republican Party in their respective counties.
As a native of Vineland and the Cumberland County GOP chair, Testa is one of the key figures under scrutiny. The LLC that played a significant role in flipping the property, Nova Investments, is listed as a major source of income for Testa on his legislative financial disclosure forms, the report on the Politico.com web site said. Nova Investments is a joint venture between Testa and his father, Michael Testa Sr., further complicating the optics of the transaction.
Doug Steinhardt, who chairs the Republican Party in Warren County, is also deeply involved in the deal. At the time of the land purchase, Steinhardt was not yet a state senator but had assumed the position by the time the property was sold. As was indicated in the Politico.com report, one of the LLCs, Dotia Investments, was registered by Steinhardt and is listed on his financial disclosure form. Steinhardt’s involvement in the deal raises questions about the timing and potential conflicts of interest given his political position.
JERC Partners XLVIII is an LLC that is affiliated with J.G. Petrucci Co., a prominent Asbury-based developer. The company’s involvement links the deal to a larger network of real estate interests in New Jersey, further broadening the scope of the investigation.
This 1615 W. Garden Road LLC entity lists attorney Seth Tipton, a named partner in Steinhardt’s law firm, as its registered agent. The Politico.com report noted that another document lists Michael Perrucci, another partner in Steinhardt’s firm, as a member of the LLC, highlighting the close professional and financial ties among the key players involved in the deal.
