A federal judge sentenced Peter Coker Sr., 82, to six months in prison Tuesday for his role in a scheme that fraudulently inflated a small New Jersey deli’s market value to more than $100 million.
Coker Sr. and his son, Peter Coker Jr., also sentenced Tuesday, pleaded guilty in December to conspiracy charges. The pair, along with former stockbroker James Patten, manipulated shares of Hometown International, whose sole asset was Your Hometown Deli in Paulsboro.
The neighborhood sandwich shop became infamous in April 2021 when hedge fund manager David Einhorn of Greenlight Capital cited it in a letter to investors as a symbol of market irrationality. Despite generating only $20,000 in sales in 2019 and less in 2020, the deli’s parent company reached a nine-figure valuation.
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“The pastrami must be amazing,” Einhorn remarked in his widely circulated note.
Court documents revealed the conspirators orchestrated coordinated trading through accounts controlled by family members and associates. The scheme produced staggering price increases of 939% for Hometown International shares and 19,900% for related company E-Waste.
Prosecutors said the defendants positioned these shell companies for reverse mergers with privately owned entities. The Securities and Exchange Commission has filed a separate civil lawsuit against all three men, with proceedings currently on hold.
Patten, 64, faces up to 20 years imprisonment and $5.25 million in fines. His guilty plea may result in a reduced sentence according to federal guidelines. While Coker Sr. remains free on bond, authorities arrested Coker Jr. in Thailand earlier this year.
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