4,361
 

Sep 26 - 3 Men Finally Indicted in $100M NJ Deli Stock Fraud Scheme



ADVERTISEMENT
 
topics gone triple plat - Number 1 spot 3X PLAT




section  x1   |  0 bx goons and 1 bystanders Share this on Twitter       Share this on Facebook

section news
  
 2 months ago '17        #1
1871 page views
23 comments


Mozzie  topics gone triple plat - Number 1 spot x13
avatar
Props total: 36157 36 K  Slaps total: 3603 3 K
Sep 26 - 3 Men Finally Indicted in $100M NJ Deli Stock Fraud Scheme
 

 
image

Three men were charged with fraud and other crimes in a scheme involving a company that was worth $100 million in the stock market despite having only a small-town New Jersey deli to its name, federal authorities said Monday.

The men – 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 – were charged with 12 counts, including conspiracy to commit securities fraud, securities fraud and conspiracy to manipulate securities prices. Patten and Coker Sr. were arrested and appeared in a North Carolina court on Monday. They are expected to appear in New Jersey federal court at a later date. Coker Jr. is still at large.

Federal prosecutors said Patten is also charged with four counts of manipulation of securities, four counts of wire fraud, and a count of money laundering. The men were also accused of market manipulation by the U.S. Securities and Exchange Commission. The SEC said its investigation is ongoing.

Coker Jr. was chairman of Hometown International, while Coker Sr. was a major shareholder. There were no lawyers of record for the defendants as of Monday afternoon, according to the U.S. Attorney's Office in New Jersey.

Your Hometown Deli, the business at the center of the probe, was located in Paulsboro, New Jersey, over the Delaware River from Philadelphia. The deli, lauded for its cheesesteaks and Italian subs, had under $40,000 in annual revenue and closed earlier this year. The parent company, Hometown International, had merged with a bioplastics company. Fellow shell company E-Waste, which shared connections with the deli owner, also merged with another firm last year.

The controversy surrounding Your Hometown Deli and the people involved in it prompted questions about whether its parent company was operating within the law. The accusations also are connected to the men's involvement in E-Waste.

The $100 million New Jersey deli, as Your Hometown Deli came to be known, was first brought to the public's attention by investor David Einhorn in a 2021 letter to clients. CNBC reported further on the company, including by unearthing more details about its then-CEO, Paul Morina, a legendary high school wrestling coach in southern New Jersey. Morina was later fired as CEO. An attempt to reach Morina was unsuccessful.


Patten, one of the men charged in the scheme, wrestled in high school with Morina. Prosecutors said Patten convinced the owners of the deli, which was established in 2014, to put it under the control of an umbrella company, called Hometown International.

"Unbeknownst to the deli owners, almost immediately after Hometown International was formed, Patten and his a*sociates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them," prosecutors said in a release.

In 2019, Hometown International started selling shares on what's known as the OTC Marketplace, where stock of small companies is traded.

"Shortly thereafter, Patten, Coker Sr., And Coker Jr. undertook a calculated scheme to gain control of Hometown International's management and its shares from the deli owners," prosecutors said. The men took similar actions to take control of E-Waste, prosecutors said. That company's shares surged, too, even though it didn't have any real business, according to CNBC reporting.

Prosecutors said the tactics "artificially inflated" the values of Hometown International and E-Waste stock by 939% and 19,900%, respectively.


As of last year, Patten was barred by FINRA, the broker-dealer regulator, from acting as a stockbroker or a*sociating with broker-dealers. He was the subject of repeated disciplinary actions by FINRA. In 2006, he successfully appealed sanctions issued by an SEC judge in a case where he was accused of manipulating the price of a stock listed on the Nasdaq. Patten was defended in that matter by Ira Sorkin, who was best known for representing Ponzi scheme kingpin Bernie Madoff.

The Cokers and Patten face steep prison sentences and fines. The securities fraud and securities price manipulation counts carry maximum penalties of 20 years in prison and a $5 million fine. The wire fraud and money laundering counts also have maximum penalties of 20 years in prison. The conspiracy to commit securities fraud and conspiracy to manipulate securities prices counts each carry a maximum penalty of five years in prison.

Coker Jr. and Sr. are father and son. CNBC had previously reported on their business dealings and other misadventures.


visit this link https://www.cnbc.com/2022 .. li-scheme.html

I was wondering when they were going to bust these fools. None of the story made sense when it first hit air waves and I'm surprised the FEDS took this long to charge them.
+11   



best
worst
23 comments
 

 2 months ago '06        #2
whammy  topics gone triple plat - Number 1 spot x7
Props total: 37287 37 K  Slaps total: 2577 2 K
Heard about this on NPR a little while back.

As much notice as they had they should have left the country.

Coker Jr is never coming back to the US.
+21   

 2 months ago '04        #3
killadre  topics gone triple plat - Number 1 spot x2
Props total: 62491 62 K  Slaps total: 4235 4 K
That was pretty epic though when it happened. I’m honestly shocked it wasn’t a bigger story than it was.

Time to get that hoe Kenny now


Last edited by killadre; 09-26-2022 at 10:18 PM..
+3   

 2 months ago '06        #4
imthatinfamous  topics gone triple plat - Number 1 spot x1
Props total: 44649 44 K  Slaps total: 12128 12 K
This is nothing new and I am sure the chinese guy was the brains of the operation.



How a Chinese cave got listed on the U.S. stock market


+13   

 2 months ago '20        #5
Jikkles 
Props total: 2823 2 K  Slaps total: 289 289
 whammy said
Heard about this on NPR a little while back.

As much notice as they had they should have left the country.

Coker Jr is never coming back to the US.
Ayyy fellow NPR guy myself.


But yea if he was smart he'd stay his a*s in China for the next few years
+7   

 2 months ago '05        #6
youngvito18 
Props total: 33058 33 K  Slaps total: 5821 5 K
Do brett favre next
+14   

 2 months ago '17        #7
LazyLeg 
Props total: 14581 14 K  Slaps total: 546 546
 whammy said
Heard about this on NPR a little while back.

As much notice as they had they should have left the country.

Coker Jr is never coming back to the US.
I was wondering about that when I saw 1 of them was from Hong Kong. As soon as it got exposed or whatever I would've taken the money I could moved it around and dipped the country
+4   

 2 months ago '21        #8
Imheretolaugh 
Props total: 5349 5 K  Slaps total: 407 407
this the level of fraud i wish i knew lol
+6   

 2 months ago '10        #9
ARosary 
Props total: 23896 23 K  Slaps total: 2400 2 K
 Imheretolaugh said
this the level of fraud i wish i knew lol
This sh*t was complex just reading
+3   

 2 months ago '21        #10
Imheretolaugh 
Props total: 5349 5 K  Slaps total: 407 407
 ARosary said
This sh*t was complex just reading
securities fraud is very complex. shell companies, cooked paperwork, hedge fund manipulation. happens every day. if i knew this level of fraud, itd mean that my business acumen is enough to not do fraud. u can finesse legally with this knowledge.

usually dont get caught till u trapped in over leverage.
+7   

Top 10 most propped recently  2 months ago '12        #11
daman729 
Props total: 118797 118 K  Slaps total: 4728 4 K
 imthatinfamous said
This is nothing new and I am sure the chinese guy was the brains of the operation.



How a Chinese cave got listed on the U.S. stock market


Wow. Just like I said in another thread yesterday, the Chinese be on some other sh*t.

+1   

 2 months ago '11        #12
GrindPOWER$  topics gone triple plat - Number 1 spot x25
Props total: 94522 94 K  Slaps total: 15902 15 K
somebody give me a brief explanation so i can understand it

 2 months ago '07        #13
Rico23  topics gone triple plat - Number 1 spot x2
Props total: 68440 68 K  Slaps total: 7292 7 K
Whole lotta Gabagool
+1   

 2 months ago '21        #14
Imheretolaugh 
Props total: 5349 5 K  Slaps total: 407 407
 GrindPOWER$ said
somebody give me a brief explanation so i can understand it
take a small biz, throw it under a shell company(off shore), inflate the earnings and make fraudulent financial reports, get your homie with a hedge fund to sucker in investors, ball out with their money while giving them minimal returns to keep them happy.

get caught and go to prison when recession hits and people want their cash that you already spent with the homies. bernie madoff did similar sh*t.

most recent hong kong stock scam: HKD/AMTD went like up 2500% then immediately fell back down lol china needed liquidity due to their current economic crisis.
+11   

 2 months ago '11        #15
GrindPOWER$  topics gone triple plat - Number 1 spot x25
Props total: 94522 94 K  Slaps total: 15902 15 K
 Imheretolaugh said
take a small biz, throw it under a shell company(off shore), inflate the earnings and make fraudulent financial reports, get your homie with a hedge fund to sucker in investors, ball out with their money while giving them minimal returns to keep them happy.

get caught and go to prison when recession hits and people want their cash that you already spent with the homies. bernie madoff did similar sh*t.

most recent hong kong stock scam: HKD/AMTD went like up 2500% then immediately fell back down lol china needed liquidity due to their current economic crisis.
thank you really thanks i understood that and you didn't call me an idiot or got mad for me asking you just explained it. i respect that
+6   

 2 months ago '21        #16
Imheretolaugh 
Props total: 5349 5 K  Slaps total: 407 407
 killadre said
That was pretty epic though when it happened. I’m honestly shocked it wasn’t a bigger story than it was.

Time to get that hoe Kenny now
kenny Griffin cyborg looking a*s?
+1   

 2 months ago '21        #17
Imheretolaugh 
Props total: 5349 5 K  Slaps total: 407 407
 GrindPOWER$ said
thank you really thanks i understood that and you didn't call me an idiot or got mad for me asking you just explained it. i respect that
we all learning fam, the more people with knowledge the better off we are.
+3   

 2 months ago '20        #18
Xiox  topics gone triple plat - Number 1 spot x1
Props total: 75651 75 K  Slaps total: 13775 13 K
American greed need to do an episode on these guys
+1   

 2 months ago '21        #19
Imheretolaugh 
Props total: 5349 5 K  Slaps total: 407 407
 Rico23 said
Whole lotta Gabagool
exactly how i feel about coding

 2 months ago '11        #20
GrindPOWER$  topics gone triple plat - Number 1 spot x25
Props total: 94522 94 K  Slaps total: 15902 15 K
 Imheretolaugh said
we all learning fam, the more people with knowledge the better off we are.
big facts pimpin

+1   

 2 months ago '14        #21
Playboi Loso 
Props total: 69713 69 K  Slaps total: 6220 6 K
n*gga secured the bag & hauled a*s to Hong Kong
+1   

 2 months ago '11        #22
Broseph Stalin  topics gone triple plat - Number 1 spot x9
Props total: 62104 62 K  Slaps total: 5819 5 K
n*ggas be so fu*king greedy bro. Could’ve ran this exact scam but trading at $8 million evaluation, would’ve flown under the radar for years and been able to launder all that money efficiently. Instead these BXmembers went for subway franchise numbers
+1   

 2 months ago '17        #23
Willy Boban  topics gone triple plat - Number 1 spot x11
Props total: 69996 69 K  Slaps total: 15641 15 K
You can’t take peoples money for 1 investment and decide to party and buy bitcoin with the hopes that you will get the money back.

 2 months ago '18        #24
kross krush 
Props total: 1055 1 K  Slaps total: 112 112
breh wallstreet/bankers are the biggest and also most untouched criminals in america. thats why there are meme stocks galore and they(sec,gov,fed) are scared to let sh*t run cause it will probably ruin the the already weak economy. there is proof of there crookedess and they never do sh*t to them 99 percent of time. all fake and rigged against retail and the average hard working person.



Sign me up
 
 

yesterday...


most viewed right now
+34online now  26
[Health] Surprise Surprise Liver King is not natty
63 comments
1 day ago
@misc
most viewed right now
+18online now  23
These kids are wild
219 comments
20 hours ago
@wild'ish
most viewed right now
online now  16
11/30.....aew wednesday night dynamite :mafiamaybe:
228 comments
23 hours ago
@misc
most viewed right now
online now  15
San Francisco Police Department Activates Skynet, Will Deploy Robots To k*ll C..
22 comments
1 day ago
@tech
back to top
register register Follow BX @ Twitter search BX privacyprivacy