Albania’s ambitious plan to transform part of its Adriatic coastline into a luxury tourism destination has come under renewed scrutiny after prosecutors alleged that a businessman who sold land for a multibillion-dollar resort backed by Jared Kushner obtained portions of the property through forged ownership documents and proceeds from international drug trafficking.
The allegations emerged from confidential case files prepared by Albania’s Special Structure Against Corruption and Organised Crime (SPAK), which were reviewed by Reuters. Prosecutors accuse Miami-based businessman Artur Shehu of laundering money generated through cocaine trafficking and using those proceeds to establish a real estate portfolio that included land earmarked for the Kushner-backed development.
Shehu, through his attorney Kujtim Cakrani, categorically denied all allegations. Cakrani confirmed Albanian authorities had issued an arrest warrant for his client but insisted the accusations were unfounded.
“Nothing that has been alleged regarding Mr. Artur Shehu’s character is true,” Cakrani said. “He is neither a drug trafficker nor a forger of property documents.”
According to prosecutors, Shehu and several associates allegedly trafficked cocaine from South America into European ports before laundering the proceeds through investments in Albanian real estate. Investigators further allege forged ownership documents were used to acquire or expand property holdings that later became part of a lucrative coastal development project.
In April, Shehu sold the stretch of coastline to Albania Land Development, a company jointly owned by Sazan Real Estate Development—the developer behind the Kushner-backed resort—and other investors.
Prosecutors wrote in the case files that there were “reasonable suspicions,” supported by evidence, that the assets involved in the transaction had been acquired through forged documentation.
The files, however, do not accuse Jared Kushner, Sazan Real Estate Development, Albania Land Development or any other investors of wrongdoing. Reuters reported it found no evidence suggesting the investors knew of prosecutors’ concerns regarding Shehu when the transaction took place.
A spokesperson for Sazan Real Estate Development declined to comment directly on the allegations against Shehu but said the company believed all land acquisitions connected to the project had been completed lawfully and in accordance with applicable procedures.
Albania Land Development did not respond to requests for comment, while a spokesperson for Kushner also declined to comment.
The allegations represent another obstacle for a project that has already generated significant controversy because of environmental concerns. Conservation groups and local residents have criticized plans to develop one of Albania’s remaining undeveloped coastal areas, which includes wetlands, forests and beaches that provide habitat for flamingos, sea turtles and other protected wildlife.
Opposition to the project has grown into a broader environmental campaign known as the “Flamingo Revolution,” named after one of the region’s most recognizable bird species.
Residents of the nearby village of Zvernec have spent more than a decade challenging Shehu’s ownership claims through Albanian courts. Several residents recently presented Reuters with land deeds and tax records they said demonstrate their families legally own portions of the disputed property.
Their attorney, Kostandin Beko, said litigation remains ongoing and residents intend to seek a court order that could halt construction of the luxury resort.
The Albanian government has nevertheless maintained strong support for the development, describing it as a major investment expected to boost tourism and economic growth.
Prime Minister Edi Rama recently characterized the project as “beautiful” and said it would proceed despite public protests. Responding to questions about the prosecutors’ allegations, a government spokesperson said authorities would not intervene in private commercial transactions but stressed the development was moving forward in compliance with Albanian and European Union laws.
Albania, once among Europe’s most isolated countries, has experienced rapid coastal development as it pursues membership in the European Union. However, Brussels has previously urged Tirana to ensure major infrastructure and tourism projects comply with EU environmental standards.
The resort itself was first unveiled publicly in 2024, when Kushner shared conceptual renderings depicting luxury hotels, villas, private marinas and swimming pools overlooking Albania’s Adriatic coast. Neither Kushner nor project developers have publicly disclosed the size of his financial investment.
Ivanka Trump has previously said she and Kushner conceived the idea after seeing the coastline while traveling by yacht.
The criminal investigation is being led by SPAK, an independent anti-corruption and organized crime agency established in 2019 with authority to investigate high-level corruption and organized criminal networks.
The confidential investigation files, dated June 12, 2026, span approximately 200 pages. On the same day, SPAK publicly announced arrest warrants for 20 suspects in connection with narcotics trafficking and money laundering but identified them only by initials, consistent with Albanian legal practice. Reuters reported that one suspect identified as “A.Sh.” corresponds to Artur Shehu.
Cakrani argued that his client had no reason to fear the arrest warrant, asserting that Albanian prosecutors are widely perceived to operate under political influence. He also maintained that Shehu’s family had legally owned the disputed land since the Ottoman era and that the subsequent sale to resort investors complied with Albanian law.
According to the case files, prosecutors allege Shehu sold the coastal property for approximately 110 million euros. SPAK said it ordered those proceeds frozen in a notary’s account, preventing the funds from being transferred to Shehu while the investigation continues.
Investigators further alleged that Shehu and his associates acquired land using illicit proceeds and forged ownership documents before transferring or exchanging the properties in ways intended to conceal their origin and complicate efforts by authorities to trace ownership.
Sazan Real Estate Development reiterated that it continues to believe the underlying land acquisitions were conducted legally and said it would cooperate with any lawful judicial process if required.
The Justice Department in the United States declined to comment on whether Albanian authorities had requested assistance in locating or detaining Shehu, who is believed to be based in Miami.
The case remains under investigation, and SPAK has not announced whether any of the 20 suspects named in its broader organized crime probe have since been arrested or formally charged. Meanwhile, legal disputes over ownership of the coastal property continue, adding uncertainty to one of Albania’s highest-profile tourism developments as prosecutors pursue allegations that reach far beyond a contested real estate transaction.
