THE FEDERAL SHELL GAME: THE MACHINERY EXPOSED
A Personal Note from the Editor
I have spent over 15 hours in the last two days going through filings, finding connections, and recognizing patterns. This work is exhausting but necessary. People have died and will continue to die if we do not work together to recognize and identify the connections.
I have exhausted my resources and will not be able to produce another project like this for a week. That is why I am asking for help to support the work so I can continue to find what is hidden.
With that said, I will never paywall or gatekeep. This is your information. You are “Eyes on ICE.” I am just an instrument that amplifies and uncovers what they try to hide.
If you can’t donate, share this information as far as you can see. I have added an Archive.org upload of the episode which includes infographics, detailed documents, slides, and more. Please share this and don’t do nothing - for if we do not stand together, we will swing together.
The gears have been revealed. Now it is time to make sure they can’t hide the machine once more.
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1. THE “FUNNEL”: SK2 LLC (Puerto Rico)
The intelligence gathered confirms a coordinated “Funnel and Ghost” scheme designed to bypass federal oversight, ignore local zoning, and funnel taxpayer money directly to Wall Street banks. The operation relies on splitting the procurement and physical operations into two geographically separated nodes to obscure the government’s involvement.
The scheme begins with a regulatory loophole. DHS utilized FAR 6.302-1 (”Only One Responsible Source”) to bypass public bidding and award a $6 million sole-source contract (No. 70CMSW26C00000002) to SK2 LLC, a Puerto Rico-based defense contractor.
The Cover: “Territorial Integrity”
The purchase is not structured as a standard real estate deal. Instead, it is nested under the massive $20 billion “TITUS” defense contract, which is dedicated to “Territorial Integrity.” By framing a local detention center acquisition as a national defense necessity, the agency creates a “National Security Cover” that allows them to override local zoning laws in Chester, NY.
The “Puerto Rico Loop”
By using a Puerto Rican entity to buy New York property, DHS created a “Puerto Rico to Puerto Rico” financial loop. The transaction involves Pep Boys - Puerto Rico, Inc., effectively separating the buyer (SK2) from the physical location of the detention center (New York). This jurisdictional sleight-of-hand makes it nearly impossible for local journalists or town boards to track the money trail.
2. THE “GHOST”: 199 Lee Avenue (Brooklyn)
While the money flows through Puerto Rico, the physical “dirty work” is subcontracted to a network of anonymous shell companies registered at 199 Lee Avenue in Williamsburg, Brooklyn—a notorious maildrop housing over 1,000 LLCs. This “Engine” serves as a liability shield for DHS and the developers.
The “Schwimmer Cluster”
Entities such as GC Capital Group and Sackett Heights are deployed to “paper over” massive environmental violations at the site. The Chester facility sits on a floodplain and lacks sewage capacity. These specific LLCs specialize in navigating the NYS DEC Brownfield Cleanup Program, allowing the government to claim tax credits for fixing the very hazards that should disqualify the site.
The Liability Shield
Construction and retrofitting are subcontracted to entities like B Contractors Group LLC. This specific entity is currently a named defendant in a federal disability discrimination lawsuit (Fair Housing Justice Center v. Watermark Capital Group).
By hiding behind these subcontractors, the federal government shields itself from direct legal fallout regarding labor violations or ADA non-compliance.
3. THE “KILL CHAIN”: The Wall Street Payout
The ultimate goal of this operation is “Financial Extraction.” The scheme moves federal funds through the Puerto Rico loop to generate immediate “cash on hand” for the seller, Icahn Enterprises (IEP). This bypasses the delays of the ongoing Pep Boys / Auto Plus Bankruptcy.
The Smoking Gun
The “Smoking Gun” is the January 27, 2026 SEC Form 8-K filing. This document confirms that the liquidity generated from this sale was used immediately to redeem senior debt notes held by major financial institutions.
The money did not stay in the community. It flowed directly to:
Goldman Sachs
UBS
BNP Paribas
The Machine Revealed
This is the machine: Taxpayer money is funneled through a Puerto Rican defense contractor, washed through anonymous Brooklyn subcontractors, and ultimately extracted to pay down Wall Street debt.
4. CITATIONS & EVIDENCE LEDGER
Contract Source: USASpending.gov / FPDS. Contract No. 70CMSW26C00000002. Awarded Jan 7, 2026.
The Authority: Naval Supply Systems Command (NAVSUP) WEXMAC “TITUS” Contract N00023-25-D-0139.
The Affiliate: In re: IEH Auto Parts Holding LLC, Case No. 23-90054 (Bankr. S.D. Tex.). Schedule of Co-Debtors lists “Pep Boys - Puerto Rico, Inc.”
The Location: 199 Lee Avenue, Brooklyn, NY. Documented as a registered agent address for thousands of LLCs.
The Remediation: NYS DEC Brownfield Cleanup Program database; filings by “GC Capital Group” (Jacob Schwimmer).
The Lawsuit: Fair Housing Justice Center, Inc. v. Watermark Capital Group, LLC et al., Case No. 1:25-cv-00874 (S.D.N.Y.).
The Bankruptcy: Case No. 23-90054, Southern District of Texas.
The Payout: Icahn Enterprises L.P. (IEP) Form 8-K filed with the SEC on Jan 27, 2026. “Redemption of Senior Notes.”
📂 ACCESS THE FULL EVIDENCE FILE
I have uploaded the complete dossier, including the infographics, slide decks, and original documents, to the Internet Archive. This creates a permanent, unalterable record of what we found.
👉 Full Evidence Archive on Archive.org DHS utilized FAR 6.302-1 (“Only One Responsible Source”) to bypass public bidding and award a $6 million sole-source contract to SK2 LLC, a Puerto Rico-based defense contractor.
The Cover: “Territorial Integrity”The purchase is not structured as a standard real estate deal. Instead, it is nested under the massive $20 billion “TITUS” defense contract, which is dedicated to “Territorial Integrity.”
By framing a local detention center acquisition as a national defense necessity, the agency creates a “National Security Cover” that allows them to override local zoning laws in Chester, NY.
The “Puerto Rico Loop”By using a Puerto Rican entity to buy New York property, DHS created a “Puerto Rico to Puerto Rico” financial loop. The transaction involves Pep Boys - Puerto Rico, Inc., effectively separating the buyer (SK2) from the physical location of the detention center (New York). This jurisdictional sleight-of-hand makes it nearly impossible for local journalists or town boards to track the money trail.
THE “GHOST”: 199 Lee Avenue (Brooklyn)While the money flows through Puerto Rico, the physical “dirty work” is subcontracted to a network of anonymous shell companies registered at 199 Lee Avenue in Williamsburg, Brooklyn - a notorious maildrop housing over 1,000 LLCs. This “Engine” serves as a liability shield for DHS and the developers.
The “Schwimmer Cluster” “Entities such as GC Capital Group and Sackett Heights are deployed to “paper over” massive environmental violations at the site. The Chester facility sits on a floodplain and lacks sewage capacity.
These specific LLCs specialize in navigating the NYS DEC Brownfield Cleanup Program, allowing the government to claim tax credits for fixing the very hazards that should disqualify the site.The Liability ShieldConstruction and retrofitting are subcontracted to entities like B Contractors Group LLC.
This specific entity is currently a named defendant in a federal disability discrimination lawsuit (Fair Housing Justice Center v. Watermark Capital Group).By hiding behind these subcontractors, the federal government shields itself from direct legal fallout regarding labor violations or ADA non-compliance.
THE “KILL CHAIN”: he Wall Street Payout The ultimate goal of this operation is “Financial Extraction.” The scheme moves federal funds through the Puerto Rico loop to generate immediate “cash on hand” for the seller, Icahn Enterprises (IEP).
This bypasses the delays of the ongoing Pep Boys / Auto Plus Bankruptcy.The Smoking GunThe “Smoking Gun” is the January 27, 2026 SEC Form 8-K filing. This document confirms that the liquidity generated from this sale was used immediately to redeem senior debt notes held by major financial institutions.The money did not stay in the community. It flowed directly to:
UBS
BNP Paribas
This is the machine: Taxpayer money is funneled through a Puerto Rican defense contractor, washed through anonymous Brooklyn subcontractors, and ultimately extracted to pay down Wall Street debt.
CITATIONS & EVIDENCE LEDGER
Contract Source: USASpending.gov / FPDS. Contract No. 70CMSW26C00000002. Awarded Jan 7, 2026.
The Authority: Naval Supply Systems Command (NAVSUP) WEXMAC “TITUS” Contract N00023-25-D-0139.
The Affiliate: In re: IEH Auto Parts Holding LLC, Case No. 23-90054 (Bankr. S.D. Tex.). Schedule of Co-Debtors lists “Pep Boys - Puerto Rico, Inc.”
The Location: 199 Lee Avenue, Brooklyn, NY. Documented as a registered agent address for thousands of LLCs.
The Remediation: NYS DEC Brownfield Cleanup Program database; filings by “GC Capital Group” (Jacob Schwimmer).
The Lawsuit: Fair Housing Justice Center, Inc. v. Watermark Capital Group, LLC et al., Case No. 1:25-cv-00874 (S.D.N.Y.).
The Bankruptcy: Case No. 23-90054, Southern District of Texas.
The Payout: Icahn Enterprises L.P. (IEP) Form 8-K filed with the SEC on Jan 27, 2026. “Redemption of Senior Notes.”
ACCESS THE FULL EVIDENCE FILE I have uploaded the complete dossier, including the infographics, slide decks, and original documents, to the Internet Archive. This creates a permanent, unalterable record of what we found.
Full Evidence Archive on Archive.org (replace with your actual upload link)Share this post.
The more eyes we get on this, the harder it becomes for them to hide the machine.
