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It was the caper of the century: a minuscule New Jersey deli not only became a publicly traded entity, but mysteriously grew to have a market value north of $100 million. Now, three men are being charged with illegally pumping up the company’s stock, with the goal of dumping their shares and absconding with the profits. They never even had the chance to pocket their ill-gotten bread.
On Monday, separate actions from the Securities and Exchange Commission and the Department of Justice accused 63-year-old James Patten, 80-year-old Peter Coker Sr., and 53-year-old Peter Coker Jr. of illicitly manipulating share prices of Hometown International—the deli’s parent company—and another business called E-Waste.
The men are being charged with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices, while Patten also faces “four counts of manipulation of securities, four counts of wire fraud, and one count of money laundering.” The SEC is separately seeking its own penalties, including disgorgement and a “prohibition against participating in any penny stock offerings.”
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