Federal authorities are investigating a real estate transaction involving two New Jersey state senators who purchased public land in Vineland, New Jersey, and later sold it for a significantly higher price. The investigation centers on the sale of the lot at 1615 W. Garden Road, which is now the site of a nearly completed cold storage warehouse.
Federal Subpoena Issued for Transaction Records
The Vineland Industrial Commission received a federal grand jury subpoena, seeking documents and communications related to the sale. This subpoena, addressed to commission member Dan Kuhar, demanded his appearance at the federal courthouse in Camden on July 17. Vineland’s law director, Rick Tonetta, confirmed that the city complied by providing all requested documents. Tonetta expressed confidence that the transaction was conducted legally.
The subpoena’s focus is on the involvement of state Senators Michael Testa and Doug Steinhardt. Both senators have connections to the limited liability companies that flipped the property, selling it for seven times the original price. Testa’s company, Nova Investments, and Steinhardt’s Dotia Investments were among the four LLCs involved in the deal. Testa and Steinhardt both assert that the transaction followed all legal and ethical guidelines.
Details of the Land Transaction
In May 2022, the Vineland Industrial Commission purchased the parcel from the City of Vineland for just $1, with the intention of reselling it to businesses that would benefit the community. By October 2022, the commission sold the lot to the four LLCs for $1.15 million. Five months later, in August 2023, the companies sold the property to Michigan-based Dawsar Investments for $8.4 million, representing a substantial profit.
While Vineland officials, including Tonetta and Sandy Forosisky, the city’s director of economic development, have stated that the transaction was handled by the book, they acknowledge that the large profit margin has drawn attention. However, they emphasize that their primary concern was to develop the city’s industrial base and create jobs, not the profit made by private investors.
Senators Maintain Transparency and Legality
In a joint statement, Senators Testa and Steinhardt emphasized that there were “no secrets, irregularities, or illegalities” in the land deal. They assured that every legal and ethical detail was meticulously followed and welcomed any further questions or scrutiny.
Despite the ongoing investigation, spokesperson Harrison Neely for Steinhardt confirmed that none of the partners involved have received any additional subpoenas beyond the initial request for documents.
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