Father-son duo charged with fraud, market manipulation in $100 million New Jersey deli scheme

Scott Gleeson, USA TODAY
·2 min read

Three men, including a father and a son, were charged with 12 counts of fraud for their involvement in a scheme that valued their company over $100 million in the stock market despite its only source of profit being a small-town New Jersey deli.

According to federal indictment documents, authorities announced the charges and arrests Monday of James Patten, 63, of Winston-Salem, North Carolina; Peter Coker Sr., 80, of Chapel Hill, North Carolina; and Peter Coker Jr., 53, of Hong Kong.

The charges for the three men included: conspiracy to commit securities fraud, securities fraud and conspiracy to manipulate securities prices. Patten is also being charged charged with four counts of manipulation of securities, four counts of wire fraud, and a count of money laundering.

According to the U.S. Securities and Exchange Commission, which has an ongoing investigation into the matter, the three men collectively were also accused of market manipulation. New Jersey prosecutors said the men conspired since 2014 to inflate the prices of two publicly-traded companies, Hometown International and E-Waste Corp, through manipulative trading – using the companies to generate illegal profits.

Patten and Coker Sr. were arrested and appeared in a North Carolina court Monday. Coker Jr. is still at large.

COVID funding fraud: 'A brazen scheme of staggering proportions'

Civil fraud char: Trump and family slammed with massive suit

The "$100 million deli," as it became known in its small town Philadelphia suburb, Paulsboro, New Jersey, was called "Your Hometown Deli" and was best known for its subs and cheesesteaks. It only generated $13,976 of sales in 2020 and $25,004 in 2021 during the coronavirus pandemic, ultimately prompting it to shut down this past June.

The deli drew national attention in April 2021 after hedge fund manager David Einhorn mentioned it in a letter to shareholders, warning them of need for more oversight. "The pastrami must be amazing," Einhorn sarcastically wrote.

The Cokers, who are father and son, and Patten face steep prison sentences, with maximum counts up to 20 years for their crimes. No lawyers were listed on the indictment documents for the three men.

This article originally appeared on USA TODAY: Father-son duo charged with 12 fraud counts in $100M NJ deli scheme

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Telecom Italia CEO set for second term to carry out revamp

    Telecom Italia (TIM) shareholders are expected on Tuesday to hand CEO Pietro Labriola another term to press ahead with a revamp centred on a planned sale of the former phone monopoly's fixed-line access network to U.S. fund KKR. The reappointment of Labriola has been separately challenged by small minority investors Merlyn Partners and Bluebell Capital Partners, which each hold a 0.5% stake in TIM. Both have been questioning the merits of the KKR deal, worth up to 22 billion euros ($23.4 billion) and backed by the Italian government, which holds an indirect 10% stake in TIM.

  • Patti Smith is honored to have been name-dropped on Taylor Swift's new album

    Taylor Swift name-dropped legendary musician Patti Smith in a song on her new album, 'The Tortured Poets Department'. "And who's gonna hold you like me? And who's gonna know you, if not me? I laughed in your face and said, 'You're not Dylan Thomas, I'm not Patti Smith This ain't the Chelsea Hotel, we'rе modern idiots.' And who's gonna hold you like me?", Taylor Swift, via "The Tortured Poets Department". 77-year-old Smith took to Instagram to thank Swift for the mention, 'Cosmopolitan' reports.

  • $8 billion US military aid package to Taiwan will 'boost confidence' in region: president-elect

    A $8 billion defense package approved by the U.S. House of Representatives over the weekend will “strengthen the deterrence against authoritarianism in the West Pacific ally chain,” Taiwan’s President-elect Lai Ching-te said Tuesday, in a reference to key rival China. The funding will also “help ensure peace and stability across the Taiwan Strait and also boost confidence in the region” Lai, currently Taiwan’s vice president, told visiting Michigan Representatives Lisa McClain, a Republican, and Democrat Dan Kildee at a meeting at the Presidential Office Building in the capital Taipei.

  • FTSE 100 hits all-time high as shares rally holds strong

    The FTSE surpassed the previous intraday record of 8,047.06 from February last year.

  • Russia's Tinkoff plans share issue to fund Rosbank deal

    Russian online bank Tinkoff plans to issue up to 130 million additional shares to help fund a deal to integrate fellow lender Rosbank into its holding structure, the company said on Tuesday. Both Tinkoff owner TCS Holding and Rosbank are controlled by billionaire Vladimir Potanin's Interros group, and the planned integration could strengthen Potanin's foothold in Russia's banking sector. TCS Holding, ahead of a shareholder meeting on May 8, said it planned to fund the deal with an additional issue of its shares at 3,423.62 roubles ($36.73) each.

  • Children Among Injured After 'Several Waves' of Russian Drones Target Odesa

    Children were reported to be among the injured after Russian drones targeted the southern Ukrainian city of Odesa early on Tuesday morning, April 23, according to a local official.Oleg Kiper, head of the Odesa government, said two children and two babies were among the injured. Three adults were hospitalized following the attack. At least nine people were injured in total, Kiper added.Ukraine’s Armed Forces said “several waves” of Shahed drones were used to target Ukraine’s southern regions. Eleven were shot down, including seven in Odesa.The Operational Command South released footage showing damage to residential buildings. The military said the damage was caused by a downed drone that hit a residential area, shops, and infrastructure facilities. Credit: Ukraine Armed Forces via Storyful

  • Can Tales of Kenzera: Zau unlock a new world of video game stories?

    Abubakar Salim set up his own studio to tell a personal tale of grief inspired by his Kenyan heritage.

  • Vibrant Wildflowers Blossom in San Francisco Bay Area

    Spring has fully sprung in California, with vibrant wildflowers blossoming on the hills of Mori Point, south of San Francisco.Footage captured by Shreenivasan Manievannan shows a dazzling array of flowers in shades of yellow, orange, and blue.“This year’s superbloom has been very subdued over the state of California, but Mori Point in Pacifica has put up a show with a cliffside full of flowers,” Manievannan said. Credit: Shreenivasan Manievannan via Storyful

  • Trump trial live updates: Judge to consider gag order violations before first witness returns to stand

    Former president’s historic ‘hush money’ election interference trial is underway in New York

  • Sunak vows ‘nothing will stand in way’ of Rwanda flights after Bill passes

    The Prime Minister said the Rwanda plan represented a ‘fundamental change in the global equation on migration’.

  • Ten dead as navy helicopters collide mid-air in Malaysia

    One of the aircraft clipped the other's rotor before the two crashed to the ground, footage shows.

  • Migrants die trying to cross Channel hours after Parliament backs Rishi Sunak's Rwanda Bill

    Tragedy comes after Rishi Sunak hailed 'landmark' Rwanda law as Lords finally backed down over efforts to amend the Bill late

  • Booing your own anthem - Hong Kong and a dilemma

    Beijing's increasing influence has led to speculation that Hong Kong's days of an independent football scene are numbered.

  • UK annual government borrowing higher than forecast in blow to Chancellor

    The ONS estimated that full-year public sector net borrowing was £120.7 billion in 2023-24, £6.6 billion more than predicted.

  • David Harewood says white actors should be able to play Othello in Blackface

    ‘If you want to Black it up – have at it, man,’ said the ‘Homeland’ star

  • Putin army offensive in east Ukraine to be 'blunted' by US military aid rushed to frontline

    Kyiv is pleading for equipment and munitions to stop Russia seizing Chasiv Yar which could pave the way, if it fell, for a major breakthrough in the war

  • Keller Group (LON:KLR) Is Experiencing Growth In Returns On Capital

    If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd...

  • Overground Suffers Rush-hour Delays As A13 Motorists Stuck In 8-mile Queue

    Overground Suffers Rush-hour Delays As A13 Motorists Stuck In 8-mile Queue

  • Nearly half of UK pets have their own room to relax in

    Nearly half of the UK’s pets now have their own dedicated room where they can relax in peace and store their belongings, research has revealed. A poll of 2,000 cat and dog owners found 48 per cent have a reserved room for their pets or a space in the garden. Just over half (55 per cent) want them to have their own 'chill out' area, while 34 per cent want to ensure maximum comfort. It also emerged 46 per cent of pet owners have designed their home around their pet, although 21 per cent admitted they are unlikely to buy items to appease their furry friend that don’t match their interior style. The study was commissioned by Homesense – part of the TK Maxx family – which has partnered with Kelly Brook to launch a pet and interiors content series ‘Barkitectural Digest’. Kelly Brook said: “I adore Teddy; he’s family and a big part of my life he is, so it’s no surprise that there are elements in my home designed around him.”

  • Amazon halts drone deliveries in California, but kicks off tests in Phoenix

    The e-commerce company has closed its delivery site in Lockeford, which has been operational since 2022.