30°
Peter Coker Jr., 54, had been a fugitive since September when prosecutors filed 12 federal charges against him, his father, Peter Coker Sr., 80, and associate James Patten, 63.
The trio allegedly boosted the share prices of Hometown International Inc. and another firm, E-Waste Corp.
Matthew Reilly, a spokesperson for the New Jersey US Attorney’s Office, confirmed that Coker Jr. was arrested on Jan. 11, according to numerous news reports. Reilly was not available for further comment on Friday, Jan. 20.
Coker Jr. was arrested last week at a hotel near Surin Beach in the Phuket province of Thailand, the Bangkok Post reported, citing local officials.
Hometown International Inc. drew attention because its only asset was “Your Hometown Deli,” a “home-style” eatery in Paulsboro, just across the Delaware River from Philadelphia International Airport.
The feds allege Coker Jr. and his co-conspirators managed to artificially inflate the company’s stock by nearly 1,000%.
Patten and Coker Sr. were arrested in September, when the Justice Department first announced the charges, which include conspiracy to commit securities fraud, securities fraud and conspiracy to manipulate securities prices.
“From 2014 through September 2022, Patten, Coker Sr., and Coker Jr. conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities,” the feds said in a statement at the time.
According to The New York Post, the scheme was noted in April 2021 by short-seller David Einhorn, who, in a letter to his clients, flagged Hometown’s massive valuation as an example of regulatory failings. In the letter, Einhorn pointed out that the company and its lone deli had generated just $13,976 in sales the previous year.
“The pastrami must be amazing,” Einhorn wrote, according to the outlet. “Small investors who get sucked into these situations are likely to be harmed eventually, yet the regulators — who are supposed to be protecting investors — appear to be neither present nor curious.”
The humble delicatessen raked in less than $36,000 in revenue over a two-year period, including just about $14,000 in 2020 because it was closed during the COVID-19 pandemic, the company’s annual report shows.
Click here to follow Daily Voice Drexel Hill-Upper Darby and receive free news updates.
