Three males linked to an organization that mysteriously drew a $100 million valuation regardless of solely working a single New Jersey deli had been charged for his or her roles in a securities fraud and market manipulation scheme on Monday.
Prosecutors slapped the three males — 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 — with 12 federal expenses for allegedly boosting shares costs of Hometown Worldwide Inc. and E-Waste Corp.
“From 2014 via September 2022, Patten, Coker Sr., and Coker Jr. conspired to counterpoint themselves via a scheme to control securities costs through a sample of coordinated buying and selling, which injected inaccurate data into {the marketplace}, creating false impressions of provide and demand for these securities,” the feds stated.
Hometown Worldwide’s solely asset was “Your Hometown Deli” in Paulsboro, New Jersey — a small sandwich store with minimal gross sales. The agency raised eyebrows by drawing a nine-figure market cap regardless of its humble holdings.

Hometown Worldwide first drew widespread scrutiny in April 2021 after well-known short-seller David Einhorn detailed the bizarre situation whereas criticizing regulators in a notice to shoppers.
Einhorn famous the corporate and its single deli earned solely $13,976 the earlier 12 months however had a market cap of $113 million.
“The pastrami should be superb,” Einhorn quipped. “Small buyers who get sucked into these conditions are prone to be harmed finally, but the regulators — who’re purported to be defending buyers — seem like neither current nor curious.”
The feds stated Patten and Coker Sr. had been arrested Monday and had been slated to seem in a federal court docket in North Carolina. Coker Jr. remains to be at giant.
All three face a 12-count indictment on expenses of conspiracy to commit securities fraud, securities fraud, and conspiracy to control securities costs. Patten faces a number of further expenses, together with wire fraud and cash laundering.
The three males are alleged to have given shares of the corporate to “relations, pals, and associates,” then traded the shares via accounts they managed to create a synthetic impression of sizzling demand for the businesses on the over-the-counter market.
“Unbeknownst to the deli homeowners, nearly instantly after Hometown Worldwide was shaped, Patten and his associates started positioning Hometown Worldwide as a vehicle for a reverse merger that will yield substantial revenue to them,” the Justice Division launch stated.
“These techniques artificially inflated the value of Hometown Worldwide and E-Waste’s inventory by giving the misunderstanding that there was a real market curiosity within the inventory,” the discharge added.
The feds stated the trio’s techniques succeeded in “artificially inflating Hometown Worldwide’s inventory by roughly 939 % and E-Waste’s inventory by roughly 19,900 %.”
The SEC additionally filed go well with in opposition to the three males in a separate motion.
“We allege that the defendants’ brazen schemes resulted within the synthetic inflation of the inventory value of two publicly traded corporations with little to no annual revenues,” stated Scott A. Thompson, affiliate director of enforcement within the Philadelphia Regional Workplace.
“Such manipulative schemes diminish the belief buyers should have within the integrity of the markets, and we’ll pursue those that have interaction in such wrongdoing.”
OTC Markets Group, the trade the place shares of Hometown Worldwide had been traded, delisted the company in April 2021 shortly after Einhorn’s letter surfaced. The trade had additionally added a “Purchaser beware” warning on shares that spur suspicions of questionable exercise.