Father-Son Duo Plead Guilty to Brazen Stock Manipulation Scheme
In a shocking turn of events, a father-son duo has pleaded guilty to orchestrating a massive stock manipulation scheme involving a small New Jersey deli with a staggering market capitalization of $100 million. Peter Coker Sr. and his son, Peter Coker Jr., will face sentencing next spring in U.S. District Court in Camden, New Jersey.
The Scheme Unfolds
The Cokers, along with a third defendant, James Patten, admitted to artificially boosting the stock price of Hometown International, the parent company of the Your Hometown Deli in Paulsboro, as well as the shares of a shell company called E-Waste. The scheme, which ran from 2014 to September 2022, involved coordinated trading of the stocks, creating a false impression of demand and driving up the prices.
Staggering Gains
As a result of the scheme, Hometown’s stock price skyrocketed by over 900%, while E-Waste’s price surged by a staggering 20,000%. The defendants gained control of the companies’ management and shares, with the aim of using them as vehicles for reverse mergers with privately-held companies.
Consequences
The Cokers and Patten face a maximum sentence of 20 years in prison. Peter Coker Sr., 82, has been free on bond since his arrest in September 2022 and is scheduled to be sentenced on May 13. His son, Peter Coker Jr., 56, has been held without bail since his extradition from Thailand in March 2023 and is scheduled to be sentenced on April 2.
Previous Convictions
James Patten previously pleaded guilty in 2010 to mail fraud, related to sending a client a false financial statement to cover up bad investments. He was sentenced to 27 months in prison in that case.
The Fallout
This brazen stock manipulation scheme has left investors reeling, and the consequences will be severe for those involved. As the case unfolds, it serves as a stark reminder of the importance of regulatory oversight and the need for transparency in the financial markets.
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