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Island Deal Sparks National Security Concerns

  //stocks-investing.news-articles.net/content/202 .. land-deal-sparks-national-security-concerns.html
  Published in Stocks and Investing on Sunday, February 1st 2026 at 1:18 GMT by New York Post
      Locales: UNITED STATES, VENEZUELA

Raritan Bay, New Jersey - February 1st, 2026 - A seemingly unremarkable, 160-acre island in the Raritan Bay, known as Petty's Island, has become the focus of a complex and increasingly concerning story involving international finance, political donations, and potential national security implications. Once a forgotten dumping ground and industrial site, Petty's Island is now owned by a Venezuelan company, with reports surfacing that a prominent donor to former President Donald Trump is poised to acquire it. This bizarre sequence of events is prompting calls for federal investigation and raising serious questions about oversight of land transactions near vital American infrastructure.

For decades, Petty's Island served as an unglamorous but necessary component of the New York and New Jersey port system. Primarily used for waste disposal and light industrial operations, the island was considered an environmental liability and largely ignored. The Port Authority of New York and New Jersey, responsible for its management, repeatedly attempted to sell the island, but its heavily contaminated state and limited accessibility deterred potential buyers. Remediation costs were estimated to be substantial, further complicating any potential sale.

However, in 2019, a surprising buyer emerged: Waterfront Estates LLC. This relatively obscure company, registered in Delaware but with clear ties to Venezuelan financial interests, successfully purchased the island. The sale price, reportedly significantly below market value for comparable waterfront properties - even factoring in the environmental issues - immediately raised red flags. Sources within the Port Authority, speaking on condition of anonymity, suggest a lack of thorough due diligence and questions about the vetting process for Waterfront Estates LLC.

"The sale happened quickly, and there were concerns internally about the lack of transparency," one former Port Authority official stated. "The price seemed... off. And the structure of the deal shielded the ultimate beneficial owner. It was unusual, to say the least."

Details regarding the specific Venezuelan connections to Waterfront Estates LLC remain shrouded in secrecy. Investigations conducted by several news outlets have revealed links to individuals with ties to the Maduro regime, fueling speculation about the purpose of the acquisition. Theories range from a strategic attempt to establish a foothold near a major U.S. port to a more speculative plan for money laundering. The lack of publicly available information has only exacerbated these concerns. Venezuela's economic instability and political climate add further complexity to the situation.

Now, the story has taken another unexpected turn. Recent reports indicate that Paul Schwartz, a well-known real estate developer and significant donor to Donald Trump's campaigns, is actively pursuing the purchase of Petty's Island from Waterfront Estates LLC. Schwartz, known for his ambitious development projects along the Eastern Seaboard, has reportedly expressed interest in transforming the island into a mixed-use residential and commercial space. While plans remain preliminary, sources close to Schwartz suggest a desire to capitalize on the island's waterfront location and proximity to major transportation hubs.

The potential involvement of a major Trump donor has amplified existing anxieties. Critics argue that the sale to a Venezuelan entity, followed by a potential acquisition by a Trump ally, creates a dangerous precedent and raises questions about foreign influence in critical infrastructure. The island's location near shipping lanes and the New York City metropolitan area makes it a sensitive location from a national security perspective. Concerns have been voiced regarding the possibility of the island being used for nefarious purposes, despite the current state of environmental contamination.

Congresswoman Amelia Hayes, representing New Jersey's 6th Congressional District, has issued a statement calling for a full investigation. "This entire transaction reeks of impropriety," Hayes stated. "We need to understand who is behind Waterfront Estates LLC, what their true intentions are, and how this sale was allowed to proceed with such a lack of transparency. The potential national security risks are too great to ignore."

The Department of Homeland Security and the FBI are reportedly monitoring the situation closely, although neither agency has officially commented on any ongoing investigations. Experts in international finance and national security stress the importance of thorough scrutiny and a transparent review of all transactions involving foreign entities and strategically important land near U.S. infrastructure. The saga of Petty's Island serves as a stark reminder of the vulnerabilities in current land ownership regulations and the need for increased vigilance against potential threats.