It's called Ship Trap Island because Zaroff needs men to hunt, so he literally causes ships to break up. He has installed lights to make it look as if a channel exists. In reality, the channel isn't there, but jagged rocks are that can tear a ship up, disabling it or causing it to sink.
This is making a comparison to Pinocchio. Saying it was such an obvious lie I’m surprised his nose didn’t start growing is an exaggeration of how unbelievable and far-fetched his lie fib was.
Preventing violent crimes and crimes against the weak usually take precedent<span> over fraud and economic crimes. </span><span> hope this helps</span>
