Father and Son Behind $100M South Jersey Deli Scam Plead Guilty to Fraud Charges

In a small town in New Jersey, a modest deli in Paulsboro unexpectedly became the focus of a $100 million financial fraud case.

The sandwich shop was known for serving cheesesteaks and fries, and its annual revenue was less than $40,000.

Hometown International, the company that owned the deli, achieved an astonishing valuation of over $100 million.

Behind this unbelievable story, it was revealed that Peter Coker Sr. and his son, Peter Coker Jr., masterminded the fraud and recently pleaded guilty to securities fraud and conspiracy charges.

The scheme began in 2014 when two residents opened the deli and sought assistance from their friend James Patten.

Under Patten’s guidance, they formed Hometown International to manage the deli’s operations.

Unbeknownst to the deli owners, Patten, in collaboration with the Cokers, had far more ambitious and deceptive plans for the company.

In 2019, Hometown International began trading on the OTC Marketplace, a stock trading platform typically used by smaller companies.

Meanwhile, behind the scenes, the Cokers and Patten manipulated stock ownership by transferring shares to fake entities, friends, and family members.

Essentially, this strategy created the illusion of high demand for the company’s stock.

As a result, the stock price dramatically increased.

At the same time, the results were shocking because despite generating minimal revenue, Hometown International’s stock price rose by an extraordinary 939%.

Similarly, a related company, E-Waste Corp., saw its stock price surge by 19,900% through the same manipulative tactics.

The purpose of all this manipulation was to trick investors and set the companies up for something called a reverse merger.

Through this strategy, private companies could use Hometown International or E-Waste to go public without following the usual steps.

Through these fraudulent actions, the Cokers and Patten stood to gain substantial financial rewards, while investors were left with worthless shares.

By 2021, financial analysts began questioning how a small deli could warrant such an inflated valuation.

For instance, a prominent hedge fund manager sarcastically remarked about how amazing the deli’s food must be, even though the menu didn’t include what they mentioned.

The government launched an investigation after the unusual numbers were reported to the SEC.

At that time, the company’s CEO was Paul Morina, a well-known high school wrestling coach.

Since Patten was his longtime friend, Morina had been convinced to let the deli become part of Hometown International.

But Morina wasn’t aware of the fraud and was later removed from the company.

Eventually, as the scam fell apart, arrests were made in 2022.

While Patten and Coker Sr. were arrested in the United States, Coker Jr. was caught in Thailand in early 2023.

Once charged, all three were accused of fraud, having made money by faking stock trades and lying to investors.

By December 2023, Peter Coker Sr. and Peter Coker Jr. pleaded guilty, following Patten, who had already admitted guilt.

Now, each of the Cokers faces up to 20 years in prison and a $5 million fine; their sentences are set for 2025.